Buyer Broker Commission

searcher profile

December 20, 2024

by a searcher from Harvard University in Philadelphia, PA, USA

Hi, my broker, who will source a deal for me, is proposing a commission of 6% of the value of the transaction. That covers, besides deal sourcing (including any customized search), some advisory, submission of LOI, helping arrange SBA loans, etc., but does not include CPA and Law firm costs. Is this commission typical? Usually, how much should a buyer broker charge as commission? thanks, Vidhu

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Reply by an intermediary
from Bangalore University in Camp Hill, PA 17011, USA
Hi ^redacted‌, you are taking the right approach, a good business broker is invaluable especially if you consider the value of your time, expertise of the professional advisor, and experience in that industry. Reach out to me if needed - https://calendly.com/transworldpa
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Reply by a lender
in Stuart, FL, USA
Why would you pay this individual anything, when most any buyside broker will do this for free. If he co-brokers with another agent, he will make half the commission anyway. Plus, you're assuming he knows his @#$ from a hole in the ground. Use a business broker to help with the buying portion of the deal. Use a solid loan broker to help you through the SBA process. Problem solved.
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