Broker fees

Broker fees are charges paid to a real estate broker for facilitating the purchase, sale, or lease of a property. These fees can be a percentage of the transaction value or a flat fee.

Context

Broker fees cover professional services such as marketing, negotiation, and transaction management. Typically, these fees are paid by the party engaging the broker, whether the buyer or the seller. In some cases, property management companies may include broker fees as part of their overall management fees or charge them separately. It's less common for these companies to absorb broker fees entirely, as they are generally passed on to clients as part of the investment process. Evaluating broker fees helps ensure they align with the expected benefits and services provided.

Example

If a property sells for $1 million and the broker charges a 3% commission, the fee would be $30,000, compensating the broker for their role in the sale process.