Why do Business Brokers get 10% and Real Estate Brokers get 6%

By Hoke - Last updated: Sunday, August 15, 2010 - Save & Share - Leave a Comment

Ten Percent is the longstanding traditional Business Brokers Commission. Why? It’s the Market Fee that almost everyone else charges.  Why do Real Estate Brokers get 6%? It’s the Market Fee that almost everyone else charges.

Is 10% too high? Aside from the required Accounting and Financial background, here is our take on this issue. The median Business Sale is about $250,000 while the median Single Family Residence in Los Angeles (2012) is about $450,000. So the Business Brokers get $250,000 x 10% = $25,000 on an average sale. The Real Estate Broker gets $450,000 x 6% = $27,000 on an average sale. Very close.

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Posted in Business Broker Fees, Business Brokers, Business Valuation, Dealing with Business Brokers • • Top Of Page