How Do Commercial Real Estate Brokers Get Paid
The real estate brokers work in various ways to complete a transaction and they connect the buyer and seller and bring them to the table to finalize the deal. Their functions range from analyzing the property, supply of necessary documentation, clearing all the doubts for the buyer, take care of the tour of the property, and make the parties to the deal come together.
They are the starting point for the transaction and remain in it till the deal is complete in all respects. For this service they are entitled to receive remuneration in the form of a percentage of the transaction amount. This amount varies from deal to deal depending on the size of the project as well as the complexity of the deal. At times they work with other co- brokers and property agents and share their income with them.
The commercial real estate agents get paid as a percentage of the transaction amount and they take smaller commissions in case of very large properties and the amount may go up to 10% of the transaction amount if the value of the transaction is much smaller in size. A commercial real estate agent puts the transaction in motion and they are the persons to blame if something goes wrong.
So, the commercial real estate agents are responsible for both the parties, and hence they get paid suitably.