Is disposition fee in addition to brokerage?

Often yes — GP earns disposition fee for managing the sale process while broker earns commission. Total transaction costs can be 3–6% of sale price.

Can disposition fee be negotiated?

Yes — in competitive capital markets, GPs negotiate fees. A strong LP track record can reduce or eliminate disposition fees in exchange for lower pref return requirements.

How does disposition fee affect IRR?

2% disposition fee on a $20M exit = $400k. On a 5-year hold with $5M equity, this reduces LP IRR by approximately 60–80bps. Meaningful over large portfolios.

Disposition Fee on Sales Price Calculator

Calculate GP disposition fee charged at property sale. Typically 1–3% of gross sale price. Compare to brokerage commission and model impact on LP net proceeds.

Principal ($)

Annual Rate (%)

Years

Compounding / Year

$ Finance Disclaimer: These calculators are for educational and illustrative purposes only. Results do not constitute financial advice. Consult a licensed financial advisor before making investment or borrowing decisions.

How to Use

Enter the values for the scenario you are assessing. Calculate GP disposition fee charged at property sale. Typically 1–3% of gross sale price. Compare to brokerage commission and model impact on LP net proceeds. Use the disposition fee result to inform your calculation.

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Disposition Fee on Sales Price Calculator

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Frequently Asked Questions

Is disposition fee in addition to brokerage?

Can disposition fee be negotiated?

How does disposition fee affect IRR?