Advice on responding to a broker who requires a purchase agreement prior to LOI or meeting the seller?

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February 27, 2026

by a searcher from Rice University in Los Angeles, CA, USA

I am seeking advice for a broker situation that I am trying to navigate as I found a business that I really like and really fits my expertise. I submitted an LOI, SBA preapproval letter, and a bio about me to the broker a week ago. I am an existing business owner so I have experience. I got zero feedback on my offer terms. The banker that has pre-approved this deal says he has no offers he’s working. I don’t know that seller has seen my offer, I’m not allowed to meet the seller until I submit my PA and raise my price was the brokers response. He won’t answer phone calls, I’ve had to email since the beginning. I would normally walk, but this deal really supports my zone of genius. Any suggestions on how to best navigate this deal/broker? Asking- 1.22M Offer 1M
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Reply by a searcher
from Rice University in Los Angeles, CA, USA
I’d email the broker saying that on advice of counsel, you won’t be submitting a purchase agreement until after meeting the owners (at the very least) and agreeing with them to move forward exclusively on basic agreed-upon deal terms, with all the contingencies for diligence, etc. I think it’s ridiculous that he’s insisting you spend $$$ in attorney fees upfront before even knowing whether your offer would be accepted or whether the deal would pass financial diligence. If another buyer has already done so, and you’d need to do the same to stay in the running, then the broker should say so. His obfuscation sounds pretty annoying.
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