How to Choose the Right Real Estate Broker

Hiring the right broker can seem like a daunting task, especially if it's your first time. However, if you head into the situation armed with the right information, it can be a much smoother process. There are several things to consider when choosing a broker. So whether it is your first or fiftieth time, you should keep this information in mind before you make a decision.

INTEGRITY

The broker should be willing to give you advice that could cost her/him commission dollars. For example: waiting instead of making a deal, advising on market conditions concerning renting versus selling, offering a discounted commission if the buyer does not have a broker. Be sure to ask for past examples of how they put their customer’s interests before their own.

She or he should also be willing to raise issues during the contract negotiation process that the client and attorney might have missed, even if these points could possibly jeopardize the deal.

MARKET KNOWLEDGE

How well does the broker know the local market and its players, market trends, and customers she or he has does business with?

How extensive is the brokerage firm's database of comparable deals and other research? Does the firm have a proprietary in-house database and their own research staff, or does the firm rely on the same market information as every other firm?

EXPERTISE

The broker should be able to speak about all issues related to the deal from listing to closing and should prepare customers for the process.

Many transactions are complex and often require areas of expertise outside those possessed by the brokerage team, such as appraisals, financing, 1031 exchanges, contracting, legal advice, and architects to name a few. Does the firm have access to these resources either in-house or through alliances with external experts in these areas?

PERSONALITY AND CREATIVITY

You will be spending a lot of time with your broker, so chemistry is important. The time spent on a transaction will be much more pleasant if you like and respect your broker.

Your broker should be a trusted advisor and advocate, not just an intermediary. The relationship should be important enough to the broker that she or he will lose sleep over “sweating the details.” The broker should also demonstrate a desire to build a long-term relationship.

SELECTION PROCESS

It may be helpful to ask the following questions:

How many sales have you closed in the past 6 months and what is the percentage differential between the asking price and closing price? How long were they on the market? You want to make sure they are in line with current trends and not consistently promising something they cannot deliver.

How many listings do you have at the moment and what price ranges are they in? You want to see how much attention your listing will get.

Do you have a team of professionals to assist in the sale / contract process such as professional photographers, floor plan specialists, graphic artists, attorneys, mortgage brokers, 1031 exchange experts, etc.

What exactly will you do to market my property? Will there be mailings, e-brochures, etc? What about catered open house parties for brokers? Will this be part of the listing agreement? What can you do that no other firm can offer? Is the firm an innovator or a follower? How proactive are they? You want to make sure you are getting exceptional quality marketing and service from a broker who will go the extra mile versus a broker who will just enter the listing into the broker's intranet and wait for someone else to bring a buyer.

How does your website compare to your competitors and how many visitors do you receive on a monthly basis? Do you have an international reach? What other websites will my listing be posted on? Does the broker have their own website?

Will print ads be used? What publications and how often?

How often will I receive updates/feedback on the sales process? Will I receive feedback verbally or will there be a written report?

Will you offer a discount if the buyer does not have a broker?

What examples can you give me of a time when you put your customer’s best interest before your own and lost a commission?

Are you aware of my building's policy on sublet, co-purchasing, amenities, assessments, and any special rules regarding open houses etc. You want to see if the broker is familiar with your building’s policies and requirements.

Most importantly, always ask for references and don't choose a broker based solely on price or commission unless you really feel they are your best choice.