Real Estate 103: How to Select a Broker

Making a choice as to who will represent you as either a buyer or seller in the sale and purchase of real estate is not an easy task. However, if you define what it is you need them to do for you, it is not hard either. Listed below are the different hats we believe a Broker must wear when they represent a client.

Trusted Confidante – For your broker to best serve you, you must provide them with full disclosure regarding your specific situation knowing that your information is safe and secure. This can be difficult to do. Understand that your broker has a fiduciary responsibility to you and you alone. You have to be able to trust them. Ask for references of those who have used them in the past. Oftentimes it is better NOT to use someone you know well or a family member simply because of their relationship to you. Would you treat them the same as you would someone else you chose if something went awry in your deal? What if they were doing a sub par job? Could that be a difficult situation for you and your friend/family member?

Experienced Business Person – Make no mistake, this is a business transaction that should be dealt with by those with experience dealing with business transactions, both inside and outside the real estate industry. Being a competent broker also requires a full time commitment to the trade no different than any other profession. Are you aware of any service industry where a practitioner can attain professional status while working part time?

Skilled Negotiator – Before and after an offer has been tendered, much can be gained or lost as a result of the negotiating skills and competencies residing in your broker. It is a fine art to be able to control the ebb and flow of a real estate negotiation. All real estate deals have many opportunities to fall victim to an inexperienced or negligent negotiator. Negotiators find their success and gratification in working through the difficulties that are inevitable in every deal to the satisfaction of both parties.

Honest Communicator – Telling the truth in emotional and stressful situations is difficult, but must be done in order to accomplish your goals as a client, whether buying or selling. Your broker needs to deliver both good news and bad, with equal enthusiasm and compassion. If there was bad news to deliver, would you rather hear some fabricated yarn or the blatant truth?

System Focused Consultant - The process of buying and selling real estate is more about having a viable, dependable and reliable system and adhering to the system than it is anything else. Whether buying or selling, the system employed and executed will produce results. Without a system, results are a product of pure dumb luck!

A few additional items for your consideration:

Your broker should be fairly compensated for the value they add to your transaction, nothing more and nothing less.

You should never choose your friend, your tennis/golf partner, your cousin/aunt/nephew, your hair dresser, or anyone else simply because of your relationship to them. If they can legitimately wear all of the hats listed above and will assess you a reasonable fee to provide their service then by all means, engage them and keep it in the family.

You should always check your broker’s references, confirm that they are practicing full time, and require them to allow you to terminate their brokerage engagement during the listing period if they do not do what they said they would do as your representative.

Please be conscious of the fact that you are entrusting one of your largest assets to your broker in what will no doubt be an emotional transaction. Who do you think would best serve your interests? Answer that question honestly and hire them.