555 Lake Avenue closed Monday for $25,000,000, making it the highest MLS sale of the year!
Like me, the first question you ask with big sales like this is, what’s the broker’s cut? Unlike me, you will think it’s “a million or two”, when in fact, it was probably more like $468,750.
Chump change? Hardly, but clearly not the millions that people outside my industry imagine. Here’s how it probably went:
Sale price: $25,000,000.
Commission: 5% (2.5% to selling broker)
Commission paid to selling broker: $625,000.
After broker’s office takes their cut, broker’s left with: $468,750.
This assumes the selling broker keeps 75%, his office taking 25%, but who knows, maybe he’s got an 80/20 split? If so, he pockets an even $500,000, very nice.
Ah, but let’s not forget about the broker’s other “partners”, Uncles Malloy and Obama. Those two sharks will skim off almost half of that money, thanks to Obama’s new 39.6% income tax rate, plus the new Medicare tax of 3.8%, plus Malloy’s theft of approximately 6.2%, all adding up to approximately $248,049.60.
Sound like a lot? Wait till the federal rate gets to 70%. (And then 90%, under President de Blasio!)