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.

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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?