This is a true story:
Once upon a time a real estate agent was asked to sell a business as a Broker. The asking price was $125,000. He agreed, but of course his Listing Contract specified a 10% commission because all businesses were different and considered harder to sell than real estate.
The Seller wanted to be as helpful as possible so he told the Broker the names of several people who might be interested in buying the business. The Broker contacted these people, and, sure enough, one of them agreed to buy the business.
When it came time to close, the Seller went to the Broker with the Buyer’s contract and asked for advice. The Broker told the Seller that he was not qualified to evaluate such a contract and suggested that the seller seek separate legal counsel.
At closing the Seller paid the Broker $12,500 and paid the lawyer another $2,500, a total of $15,000 and equal to 12% of the selling price.
P. S. This transaction involved a Real Estate Agent as intermediary. If an experienced Business Broker were the intermediary then there would likely have been an additional charge to the Seller of 8% of the gross rent because the property lease was transferred to the Buyer without any guarantees from the Seller.
(Business Sale Example)
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