Factors and Questions to Consider When Hiring a Broker

If you are looking to sell an asset and use a brokerage to do so, there are many factors to consider and questions to ask when choosing a broker to represent you in the sale of your asset(s).

Selling real estate and paying commission can be one of the largest financial decisions you ever make, so it’s wise to do your homework on the front end. It’s more important to hire the right broker to represent you, rather than base your decision on outside factors that truly do not represent your best interest.

Does that broker specialize in the property type you are seeking to sell or does he/she spend time selling as a generalist? (a home one day, an office lease the next day, land and so on) it’s important to find someone that is an expert in their particular property type.

1. How much experience do they have? Very few characteristics outweigh experience. Experience also provides third party support, such as banking, appraisal, and inspectors to name a few.
2. Are they highly energized? Do they have salesmanship? Are they hungry for a sale? Do they pick up the phone and make calls? Reactive brokers are not working for you, but rather the buyer and their commission.
3. What is their marketing plan? What type of marketing material do they use? Is their marketing material professional and informative?
4. Does that broker provide a sound and accurate proposal that is comprehensive and thoughtful? Ask yourself, is this broker just trying to “buy” the listing by inflating the actual value so you, the client, sign a listing agreement?
5. How will they communicate with you during the marketing process? Many owners do not want to hear from their broker until the closing table while other owners want a formal detailed update once a week.
6. What is the term of the listing agreement? How much does it cost you to hire the broker? How are the fees structured?
   How is the broker going to achieve your goals?

You should interview 2-3 brokers before considering one to choose. Review their website, social media output, marketing material, etc. beforehand.

By Mike Zangara