When you sell a triple-net (NNN) lease property through a traditional broker, the commission is rarely the only cost. Between the listing broker, the buyer's broker, closing costs, attorney fees, and title, the total transaction cost can reach 4–6% of the gross sale price. On a $4 million property, that's $160,000 to $240,000 leaving your proceeds before you close.
This guide breaks down every cost involved in a NNN property sale — broker and non-broker — so you know exactly what you're paying and what you can reduce.
The Broker Commission — How It's Structured
NNN broker commissions are almost always calculated as a percentage of the gross sale price and paid at closing from seller proceeds. The structure varies but typically works one of two ways:
- Single agency: One broker represents the seller. Commission is typically 2–3% of sale price. If a cooperating broker brings the buyer, the listing broker splits the commission with them — the seller still pays the full amount.
- Dual agency: The listing broker also represents the buyer. Commission may be slightly lower but the broker has a conflict of interest representing both sides of the transaction.
In practice, NNN sellers commonly pay 3–4% total commission when a buyer's broker is involved. On a co-brokered deal, the listing broker takes roughly half and the buyer's broker takes the other half. The seller pays both.
Full Cost Breakdown: Traditional Broker Sale
Here's a realistic cost breakdown for a $3,500,000 NNN property sold through a traditional broker:
| Cost Item | Typical Range | On $3.5M Sale |
|---|---|---|
| Listing broker commission | 1.5% – 2% | $52,500 – $70,000 |
| Buyer's broker commission | 1% – 2% | $35,000 – $70,000 |
| Title insurance (owner's policy) | 0.3% – 0.5% | $10,500 – $17,500 |
| Closing attorney fees | $3,000 – $8,000 | $3,000 – $8,000 |
| Transfer taxes (varies by state) | 0% – 1.5% | $0 – $52,500 |
| Escrow / settlement fees | $1,500 – $4,000 | $1,500 – $4,000 |
| Prorated property taxes | Varies | Varies |
| Total transaction cost (excl. transfer tax) | 3% – 5% | $102,500 – $169,500 |
Transfer taxes vary dramatically by state — some states have none, others (like New York and Pennsylvania) can add 1–2% to the total cost. Always verify your state's transfer tax rate before modeling your net proceeds.
Full Cost Breakdown: Direct Sale via REvaulti
Here's the same $3,500,000 transaction on REvaulti:
| Cost Item | Amount | Notes |
|---|---|---|
| REvaulti technology service charge | 0.5% ($17,500) | Collected by title at closing |
| REvaulti Intelligence Report (optional) | $99 | Independent valuation, pre-listing |
| Title insurance (owner's policy) | $10,500 – $17,500 | Same as traditional |
| Closing attorney fees | $3,000 – $8,000 | Same as traditional |
| Transfer taxes | Varies by state | Same as traditional |
| Escrow / settlement fees | $1,500 – $4,000 | Same as traditional |
| Total transaction cost (excl. transfer tax) | ~1% – 1.5% | $32,599 – $47,099 |
| Savings vs. traditional broker | $55,000 – $122,000+ | On this transaction |
The non-broker costs — title, attorney, transfer tax, escrow — are identical in both scenarios. The only material difference is the broker commission vs. the 0.5% platform fee. Everything else closes the same way.
Hidden Costs Owners Often Overlook
Beyond the commission, there are several costs that catch NNN sellers off guard:
- Offering memorandum preparation: Some brokers charge $2,000–$5,000 for OM design and printing, separate from the commission. Confirm whether this is included before signing a listing agreement.
- Exclusivity period costs: Most broker listing agreements are exclusive for 6–12 months. If the property doesn't sell, you've lost that time and may still owe a commission if the broker introduced a buyer who later purchases outside the agreement (tail clause).
- Dual representation risk: When the listing broker also represents the buyer, they have a financial incentive to close the deal — not necessarily to maximize your price.
- LoopNet/CoStar listing fees: Some brokers pass through listing platform costs. Ask whether these are included in the commission.
How to Calculate Your Net Proceeds
To calculate your estimated net proceeds from a NNN sale, start with your gross sale price and subtract:
- Broker commission (if applicable)
- Title insurance premium
- Closing attorney fees
- State transfer taxes
- Escrow and settlement fees
- Any outstanding mortgage balance (if applicable)
- Prorated property taxes through the closing date
- Any tenant security deposits being transferred to buyer
The result is your gross net proceeds before federal and state capital gains tax. Consult your CPA before closing to understand your tax exposure — particularly if a 1031 exchange is an option.
When a Broker Commission Is Worth Paying
There are scenarios where broker involvement adds enough value to justify the commission:
- Complex or distressed assets: Properties with short lease terms, dark tenants, environmental issues, or unusual lease structures may require broker expertise to position and market effectively.
- Off-market relationships: Some brokers have direct relationships with institutional buyers who are not active on platforms. For large assets ($20M+), these relationships can matter.
- Owner bandwidth: If you have no bandwidth to manage the transaction process, a full-service broker handles everything — at a cost.
For standard single-tenant NNN assets — QSR, convenience, auto service, pharmacy, dollar stores — with corporate or strong franchisee guarantees and 5+ years remaining, the buyer pool is deep and sophisticated. These buyers transact regularly and do not need a broker to facilitate the introduction.
Know your number before you list.
The REvaulti Intelligence Report gives you a comp-derived fair value range
for $99 — before any broker sees your property.
Frequently Asked Questions
Is the broker commission negotiable?
Yes, broker commissions are always negotiable. There is no legally mandated commission rate. On larger transactions ($5M+), commissions of 1–2% total are not uncommon. That said, negotiating a lower commission may affect how aggressively the broker markets your property.
Do I have to pay a buyer's broker commission?
No — but refusing to offer a buyer's broker commission may reduce your buyer pool, since many buyers work exclusively with brokers. On direct platforms like REvaulti, there are no buyer's brokers involved.
Can I sell while under a broker listing agreement?
Review your listing agreement carefully. Most exclusive agreements prohibit you from selling independently during the exclusivity period. Wait for expiration or negotiate a mutual release before listing elsewhere.
What is a tail clause?
A tail clause (also called a protection period) in a broker listing agreement means that if a buyer the broker introduced purchases the property within a certain period after the agreement expires — often 6–24 months — the broker is still owed a commission. Read this clause carefully before signing.
Is REvaulti's 0.5% fee in addition to a broker commission?
If you have an existing broker agreement, any commission owed under that agreement is separate from and independent of REvaulti's platform fee. REvaulti does not coordinate with or pay brokers. Both fees would be reflected in the closing settlement statement.