What motivates a broker to price a business too low?

Quick sale = quick commission. That's it. They'd rather churn a $500k sale tomorrow than grind for a $700k sale in six months.

I don't think it's laziness so much as risk management on their end. A low price attracts more buyers, creates a bidding war, and they look like heroes. Plus they're not the ones losing the extra $100k.

Or it's just incompetence. My last broker priced my laundromat based on a generic industry multiplier witthout even looking at my lease terms. Sold for way less than I wanted.

Yeah but you still sold, didn't you? Broker got paid. That's the whole point.

So how do you counter this? Do you just push back on their valuation or is it better to get multiple opinions?

Get three brokers to value it. If two come in higher, the lowballer either adjusts or you walk. Also make them show comps. Real ones. Not their cousin's bar that sold in 2019.

Some brokers lowball intentionally because it makes them look like a dealmaker. They know the buyer will negotiate up anyway. So the $400k list price turns into a $475k sale snd everyone claps. It's theater.

Theater is generous. I call it 'anchor to the bottom' pricing. And it works because most sellers are desperate.

Desperate or tired. By the time you're listing, you've already checked out mentally. Easy to get pushed around.

So the consensus is basically 'trust no one, do your own homework.' Fair enough. What about brokers who are honest — how do you spoot them? Or is that a unicorn hunt?

They exist. Look for someone who asks more questions than they answer. If they're trying to understand your business before quoting a number, that's a good sign. If they slap a price on it in ten minutes, run

Also check if they have a hidden double-dip — like they represent buyrs too on the same deal. Conflict of interest baked in.