How much does it cost to hire a broker?
The cost to hire a broker varies from market to market. Generally speaking in South Florida, the cost to hire a broker is paid by the landlord or the seller of the property. For sale properties, it's generally five to six percent of the full sale price. For lease properties, it's generally four to eight percent of the full lease value over the term. That, again, is paid by the landlord or the seller. It's not paid by the tenant or the buyer. There's no cost to a tenant or buyer.
A lot of tenants or buyers will tell me, "Isn't there a hidden cost? If I come in with a broker, won't they charge me more?" The truth is, they won't. I've spoken with many landlords, many sellers and they appreciate having a good professional broker in the transaction that will help keep the buyer or tenant reasonable. Let them know what the market is and it makes the transaction go more smoothly. More where they don't have two asking prices, there's not an asking price for people who come in with a broker and then a lower price for people who come in without a broker.
Everyone is starting at the same level. How far below that you, as a buyer or tenant, can get that or how far above, you as a landlord or seller can get it depends on how good your broker and your team is to push that one way or the other for you.