Commission is the fee paid to brokers for successfully closing a transaction. LA multifamily commission typically runs 3–6% of sale price, split between listing broker and cooperating (buy-side) broker.
Commissions are typically paid by the seller at closing from sale proceeds. In a cooperating transaction, the listing broker's commission is split with the buy-side broker (typically 50/50 or another negotiated split). Discount brokerage models charge lower commissions but often provide less service.
LA multifamily commission 2026: stabilized deals 4–6% (split), complex or specialty deals sometimes higher, institutional mega-deals sometimes lower (2–4%). The commission is rarely the deciding factor — broker quality and execution matter far more.
From the Sterman LA Multifamily Glossary — defined the way a broker with $1.41 billion across 254 closed transactions actually uses these terms.
Michael Sterman, Senior Managing Director Investments, Marcus & Millichap.
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