How to Choose
a Real Estate Broker

  1. Questions to ask people who recommend a particular broker
  2. Questions to ask the broker

After you have whittled down your list to two or three promising names you're ready to do a bit more research before you choose a broker. You'll want information both about the broker and from the broker.

Questions to Ask People Who Recommend a Particular Broker

Before singling out one or two brokers with whom you'd like to work, you'll want to ask your contacts the following questions:

  1. What is the broker's reputation for honesty, experience, thoroughness and accessibility? The person who has recommended this broker may have the answer. If not, ask other real estate professionals you might know- the agent who sold you your house, for example, or your lender (mortgage lenders work with brokers all the time).
  2. What were the broker's weak points? In even the best working relationship there are normally a few bumps along the road. Find our what they were. If these problems are likely to upset you- for example, one prospect won't return calls on Sundays or is al- ways late for appointments, which will drive you nuts- then it's best to know now.
  3. What were the broker's strong points? There may be one aspect of the space-hunting game that is of paramount importance to you, and you'll want to make sure that you find someone who can deliver, For example, if you need space for a specific need such as a gymnastics studio, you'd like a broker with imagination who can think creatively about adapting space to your highly special needs.
  4. Would they use the same broker again? This question appears rather obvious, but in fact its very useful because you'll typically get information that a specific question might not have elicited. For instance, you'll often hear a response that starts "Well, yes, because what I really liked was ..." The rest of the sentence often recounts a personal trait or professional skill, such as attention to detail or a negotiating savvy, this is important to you.

Questions to Ask the Broker

When you're ready to speak with a few brokers who have been recommended by others, make an appointment with each one and come equipped with the following questions:

  1. What is the broker's experience with commercial needs like yours? Hopefully, you already know that the broker is familiar with the needs of businesses like yours. But if you're not sure-or even if you think you have a specialist- it's wise to confirm your conclusions. A good starting point is to show the broker your Rental Priorities Worksheet and see if he or she can help with your kinds of needs. Ask the broker for references from small businesses like yours.
  2. What is the size of the real estate office? Sometimes you'll have a choice between a broker in a large real estate office arid one in a smaller one. If you're a small business owner with modest space needs, it’s possible to get lost in the shuffle if you go with a large firm that primarily deals with big tenants who need space of 10,000 square feet or more. The result may be that you'll get stuck with a less- experienced broker.
  3. What are the compensation practices of the broker's office? Most brokers earn their money by straight commissions-they're not salaried. (The various ways to pay your broker are explained in Section Fl, below.) This means that there can be tremendous pressure on them to close the deal and move on to the next one. Larger firms, however, may place some brokers on partial salary, reducing their dependence on commissions, which may lessen the pressure to finalize the lease as soon as possible. This translates into a more long-term approach to your space hunt. For example, a broker on salary might caution you to look further or to renew an existing lease instead of relocating.