Real Estate Broker Selection Checklist
I have worked with well over a hundred real estate brokers and have worked with them all over the country. Many have been great, but a lot have frankly been disappointing. The disappointment usually stems from the belief they aren’t representing their clients interest in the way they should be represented.
So how do you find a real estate broker who will represent YOUR interests the way it should be represented? The following 5-step checklist is a guide for selecting a real estate broker that will represent you the right way.
1) Integrity: integrity is doing the right thing no matter what. When it comes to representation, a real estate broker with integrity will place their clients needs above their own. They will eliminate any conflicts of interest. They will encourage clients to make decisions that are best for the client instead of decisions that are in the brokers self interest. Step 1 is find a real estate broker who is a person of integrity.
2) Knowledge: you will want to find a real estate broker that is very knowledgeable about the real estate investment type you are considering and in the markets you are considering. Ideally you’ll find a real estate broker that is well versed in many other real estate investment types and can therefore help you make decisions that are in your best interest. The broker should have answers to most of the questions you ask and is willing to help you find the answers to the questions they don’t have answers to. Step 2 is find a real estate broker who is very knowledgeable about the type of real estate you want to invest in.
3) Experience: nothing beats experience. One of the beautiful things about real estate is every property is different – location, building, performance, lease, title history, environmental background, etc. These differences make your property unique, but they also need to be understood. An experienced real estate broker has “been there, done that” and will provide you valuable insight and guidance. Step 3 is find a real estate broker with experience.
4) Relationships: real estate is a relationships business. A real estate broker with relationships can help you find that off-market or pre-market property before it’s made available to the general public. A broker with relationships can help open doors that may otherwise be closed to you. Step 4 is find a real estate broker who has a lot of industry related relationships.
5) Doesn’t Require You to Sign a Buyer’s Representation Agreement. A lot of brokers will ask you to sign some form of Buyer’s Representation Agreement before they work with you. Except in very limited circumstances I strongly discourage this. If you aren’t satisfied with the level of service you’re receiving from your real estate broker you should be able to find someone else to work with. The type of broker described within this article won’t be worried about whether or not you sign a buyer’s representation agreement because they know they will be delivering you the best available service. Step 5 is find a real estate broker who doesn’t require you to sign a buyer’s representation agreement.
For additional detail about real estate broker representation please visit the Buyer Broker Representation page.