I have gotten introduced to some smaller brokerages as part of my deal sourcing. However, It seems like the fees and retainers are quite high. I have not worked with a broker before, so I am curious to what people are seeing out there for fees. I was given a quote from one brokerage to be a 15k retainer and 8% of closing price ( without any negotiations). What quotes are other getting?
Broker fees - Is a 15k retainer and 8% of closing price too high?
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by a searcher from Iowa State University of Science and Technology
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If the broker is providing a full-service buy-side search, then a retainer and success fee are appropriate otherwise you are asking them to work for you for free (if you're a searcher, you're asking them to do YOUR job for free) with no guarantee you can ever successfully close a transaction.
The amount for both might vary depending on the project. The alternative is conducting the search on your own, which very well could be the best approach.