In this guide
- Who pays, and when
- Why there is no standard percentage
- Splitting the fee between the real estate and the business
- Where referral fees fit
- What to put in writing before you list
Key takeaways
- The seller pays, out of proceeds at closing, per the listing agreement.
- There is no standard rate — care home fees are negotiated deal by deal.
- Business-inclusive deals often split the fee across property and going concern.
- Referral fees come out of the agent's commission, never out of the client's pocket.
- Get the minimum fee, term, and protection period in writing before marketing starts.
Who actually pays the commission?
The seller, out of closing proceeds. The amount and structure are agreed in the listing agreement before the facility hits the market, and it appears on the settlement statement as a seller-side cost. That is why a seller's net sheet — not the headline price — is the number that matters. What paperwork you need to sell an assisted living facility covers where the listing agreement sits in the document stack.
Buyers usually do not write a separate check for representation on these deals. On larger transactions, buyer-side representation agreements do exist, particularly where a buyer wants someone hunting off-market inventory for them — see how to find off-market assisted living facilities for sale.
Why is there no standard percentage?
Because a care home sale is not one transaction — it is a real estate sale and, often, a business sale in the same envelope. Residential percentages assume a comparable-sales market, a 30-to-45 day escrow, and a buyer who needs no license. None of that applies here.
Three things push the number around:
Deal size. A 6-bed home in the mid six figures and a 60-bed community at eight million cannot carry the same percentage. Smaller deals often need a stated minimum fee to be worth working at all; larger ones frequently step down in tiers as price rises.
What is included. Real property only, or property plus license, resident agreements, staff, and goodwill? The business component takes materially more work.
How long it takes. Care home sales commonly run several months once buyer financing and license transfer are in the path — see how long it takes to sell an assisted living facility. A fee has to survive that timeline.
How does the fee split when a business rides along?
Often into two lines: one on the real estate, one on the going concern. The real property piece looks like a commercial real estate commission. The business piece looks like business brokerage, and in some states that portion requires a business broker license — which is one reason agents and assisted living business brokers co-broke these deals rather than fight over them.
Two practical points. First, how the purchase price is allocated between real estate and business assets has tax consequences for both parties, so allocation is negotiated — do not let your fee structure quietly depend on an allocation nobody has agreed to yet. Second, if the deal is seller-financed, spell out whether the fee is earned in full at closing or paid as payments come in. Owner financing for assisted living facilities explains why that comes up so often on smaller homes.
Where do referral fees fit?
A referral fee is paid agent-to-agent, out of the commission the receiving agent earns. The client pays exactly the same amount whether or not a referral was involved. That is worth saying plainly to sellers, because it is the most common misunderstanding.
The structure matters more than the rate. A referral that is just a name handed over is worth little and tends to go nowhere. A referral where the network has qualified the lead, confirmed the market, and stays engaged through closing is worth a real percentage — and the paperwork should reflect that. In our network, every connection is covered by a written client-to-agent referral agreement for that specific deal, not just a blanket partnership agreement signed once at the start. How assisted living referrals work walks through the mechanics.
What should be in writing before you market the facility?
Five things, every time:
- The fee — percentage, tiers, and any minimum, stated separately for property and business if both are in play.
- The term — how long the listing runs, given a months-long realistic timeline.
- The protection period — who owes a fee if a buyer you introduced closes after expiration.
- Confidentiality obligations — critical here, because residents, families, and staff usually cannot know. See selling confidentially.
- Who pays third-party costs — appraisal, broker's opinion of value, marketing.
Sellers: ask about all five during your interview. Questions to ask an assisted living real estate agent has the rest of that list.
Get the right agent on it
Fee structure matters less than whether the person can actually close this kind of deal. Get matched with a Buy Sell Assisted Living expert and we will connect you with a specialist who works care home transactions in your market. Agents who want these deals can apply to our referral partner network.
Informational only — not legal, financial, or tax advice. Commissions are always negotiable and are not set by law or by any association. Licensing rules for business sales vary by state; confirm yours with qualified professionals.