What's a reasonable broker fee/percent? They vary from flat to @ 3% to 25%+ depending on product/service? Who should pay? Should it be negotiable?

[DrPepper12]

Should ONLY buyers pay? Sellers? Split? At what ratio? Should brokers ONLY get a percentage or are flat fees (either as a standalone cost or ON TOP of the percentage cut? Are they even NEEDED?

Real estate

Commercial sellers / property managers: Brokers specialize in arranging transactions for offices, retail spaces, and industrial buildings.

Finance & securities

These professionals charge higher fees, often a percentage of assets under management, in exchange for a wide range of services.

Insurance.

Commissions: Brokers typically earn a commission paid by the insurance company as a percentage of the policy's premium. They may also earn a smaller "renewal commission" when the policy is renewed.

Broker fees: In addition to or in place of a commission, a broker may charge a fee directly to the client for their advisory or administrative services

Business and mergers and acquisitions

Brokers commonly charge a commission of 10% to 12% on smaller deals, with the percentage decreasing on larger transactions.

Retainers: For larger M&A deals, advisors often charge an upfront retainer fee in addition to a success fee paid at closing.

Mortgages.

Lender-paid compensation: In most cases, the lender pays the broker a commission, which may result in the borrower paying a slightly higher interest rate. Some pay borrower directly, typically 1% to 2% of the total loan amount, usually paid at closing.

Shipping and logistics.

Commission: A freight broker's compensation is typically a percentage of the difference between what the shipper pays and what the carrier charges or flat fee. This can range from 10% to 25% depending on the load.

Customs.

Transaction fees: For each entry or declaration, customs brokers charge a service fee, which can be a flat rate or based on a percentage of the goods' value.

Luxury goods

Art brokers: Facilitate the buying and selling of art and charge a commission or fee based on the transaction.

Buyers exclusively

Sellers exclusively

Split it evenly 50/50

Split it BUT the ratio is NEGOTIABLE

National govt imposed rates for everyone w/ COLA adjustments

50 states &/or 8000+ counties should set rates

Brokers are rent seeking parasites & should not exist

Updates

8 mo

Kinda surprised at brokers are parasites. Any market maker who puts buyers & sellers together SHOULD get SOMETHING.

[exitseven]

In a free enterprise system it should be whatever the market can bear. People can be rewarded for a service that is based upon a particular talent. The more valuable a talent is, the better the compensation. A brain surgeon should be rewarded more than a pastry chef.

[exitseven]

Thanks for the MHO😎

[AviatorTom]

Broker fees should usually be in the 3-5% range, regardless of service, and they are negotiable. People with a large investment often get a lower % fee.

When a buyer and seller are involved, the broker fee should be split between the two, nit necessarily 50-50.

[DrPepper12]

I agree market makers should only get fees or total compensation within that range. I have no idea why some commissions and broker fees are so ridiculous!

[AviatorTom]

Thanks for MHO

[AI Opinion]

Broker fees vary depending on the industry and service provided. In real estate, typically sellers pay 5-6%, often negotiable. For financial services, fees can include management percentages or commission structures. In insurance, brokers receive commissions often from the insurer, sometimes complemented by direct client fees. M&A deals might have upfront retainers and success fees, often 10-12%. Mortgage brokers may be compensated by lenders at rates about 1-2% of the loan. Shipping brokers may charge 10-25% commission or a flat fee. Fees can sometimes be negotiated; understanding market standards and service value is essential.

[DrPepper12]

STFU bot

[RedInnocent69]

He’s not wrong though 😂

[D_Bone_Steak]

And now you know why capitalism works better than a top-down economic system. Congratulations. You just passed my class.

For extra credit we'll do my weekend class on banging bitches. Should you pay or avoid the ones that want to make you excessively pay? We have a market on our hands here and it's time to make some choices. Is there a way to not pay at all and get paid to fuck these bitches? The best of you will find out.

[Anonymous]

Brokers or not, tip or not you got to take into account how much you are going to pay overall.

[chrissykerdock]

no way

[DrPepper12]

No way to what? Paying a broker fees or commissions?

[chrissykerdock]

payinfg a broker fee for that