Some Brokers offer 5% and 6% Commissions

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

Most of the 5% to 6% Commission Brokers I’ve met are Residential Real Estate Agents anxious to get a Listing or try something new. They assume Business Listings get the same commission as selling a home. While selling a home and business require the same Real Estate license, the skill sets and marketing venues are very different.

Business Brokers stress confidentiality while Residential Real Estate Agents post signs and advertise on the MLS (Multiple Listing service) with a photo gallery and address for all to see. The MLS actually has a Business Opportunity category allowing all 500,000 California Residential Real Estate Agents open access to your Business’s address, confidential financial information and photos. Business Brokers are selling financial cash flow. Residential Agents are selling location.

A Real Estate Agent can get property values by getting Comparable Sales from local property records. The Business Valuation is not as simple and requires knowledge of accounting and finance.

Ask the 5% – 6% Agent where he will advertise your business and how many businesses he or she has sold. Selling a business requires more technical expertise.

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