While not everyone needs one, many buyers and sellers find comfort in the guidance and expertise that a real estate broker can provide. But just as important as deciding to hire one is picking one that fits your personality and understands your real estate goals. Remember, every broker is different. Some have more experience and specialize in specific properties or neighborhoods, while others might be new to real estate or have access to an extensive network of industry partners. Here, we’ve provided you with some things to consider as you begin your broker search.
How do I find a broker?
There are many ways to find a broker. Visiting brokerage websites will give you myriad options, as will scanning through listing sites. Leveraging your own network to see if any of your friends or family can recommend one to you is another popular method. If you’re a seller, you might consider asking neighbors that have either just sold or are currently selling their homes which broker they are using. If you’re a buyer and you’ve inquired about properties on your own, brokers you’ve interacted with will likely reach out to you and ask you if you’d like them to represent you during your search. Generally, you should try to meet with a potential broker in-person or speak to them over the phone before committing to working with them.
What should I ask if I’m a buyer?
First, know that all brokers work off of commission that gets covered by the seller. Whether or not you find a home, you won’t have to pay your broker. Sometimes, buyers think that the small percentage they will save by going direct (without using a broker) is worth the extra time and effort they’ll need to put into their home search and the negotiating process. However, a good broker should provide far more in value.
There are countless horror stories about people buying their first home without a broker. In NYC, this is a mistake. The product is generally very old, particularly with townhomes, and having a competent broker who has access to architects and inspectors is critical. A broker will also be invaluable when dealing with real attorneys. Deals have fallen apart over terms that are rather miniscule in the broader picture.
Finally, because brokers understand the market and how to value property, buyers with brokers won’t have to worry about submitting uncompetitive offers and potentially losing out on their first, second, and third favorite options. The emotional toll of losing out on numerous properties in the name of being penny-wise and pound-foolish may not be worth foregoing the advice and expertise a broker can provide.
Before you think about what you want in a broker, think about what you want in a home. The more you can tell your broker about what you want, the better they will be at finding what you’re looking for. Knowing what you want will also help you evaluate whether your broker understands your taste and preferences.
Questions to consider:
Do you regularly work with buyers? How much experience do you have? Do you know the specific neighborhoods that I’m interested in? Do you have a network of lenders and attorneys you can recommend? How much time do you have to commit to my home search? How flexible are you with showings? How experienced are you with co-op approvals? Can you provide me with recent examples of you negotiating a better deal for a client?
Bottom line, whether it has to do with their personality or experience, your broker should be someone that makes you feel comfortable, confident, and secure. Buying a home is not only a financial decision, but an emotional and personal one as well. It is important for the buyer and broker to understand this.
What should I ask if I’m a seller?
As the seller, you will be responsible for paying the commission of your broker and the buyer’s broker (if they have one). You should also be aware that many brokers may require you to sign an exclusive listing agreement to work on your property. Typically, these agreements are negotiable and they stipulate both the commission percentage and the length of time that the agent retains sole authority to market and sell your property - 5% and 6 months are most typical.
Questions to consider:
Can you tell me about the properties you’ve recently represented (both with homes you’ve sold and homes you haven’t)? What past strategies have you used that have proven successful? Which ones have failed? Have you sold properties similar to my own home? How do you plan to market my home? At what price point do you recommend listing my home? How much time do you have to commit to selling my home? How many other listings do you currently have? Can you send me examples of marketing material from those properties? Are you going to handle each showing personally?
Bottom line, it’s good practice to interview several brokers and compare them based on multiple factors. Be wary of brokers that promise too much, and don’t be afraid to end your professional relationship with one if you feel that it isn’t working out. If you would like to interview me or would merely like a market update, do not hesitate to reach out. My number is 917.603.6344 and my email is braymond@pegasusequities.com.