5 Guiding Tips on How to Choose a Brokerage

The real estate market is a huge part of the American economy. 

In 2019, around 5.34 million homes were sold in the US. And in 2020, that number is projected to surpass 5.5 million. 

That’s a lot of inventory, and it means there’s a correspondingly large number of real estate brokers. Choosing a brokerage, whether to sell your old home or find a new one, is a big decision. There’s a strong temptation to just throw up your hands and pick the first name you find. 

But the truth is, you need to find a real estate broker that will really hustle. So, let’s look at five good tips on how to choose a brokerage. 

1. Find Someone Who Will Work for You

This is the first tip for a reason. 

It can’t be stressed enough how important it is to find a brokerage that’s a good fit for you. If you’ve made your wishes very clear, and they are reasonable, a brokerage should be able to provide you with good options. 

If this isn’t the case, then they might be looking out for themselves rather than you. Don’t be afraid to ask tough questions — this is an important decision, and you need to have all the facts. 

Don’t overlook the importance of chemistry, either. If a brokerage feels like a good fit, even if it might not have all the experience and credentials of a better-known outfit, follow that feeling. 

2. Ask for Referrals

Figuring out how to find a brokerage business isn’t easy. One way to reduce this difficulty is to sound out your friends, and other homeowners, to see who they’d recommend. 

It’s tempting to rely on websites and phone apps, but sometimes it’s better to go with word of mouth. If a friend or a family member has glowing reviews about a certain brokerage or agent, then it’s a safe bet they’ll be a good fit for you as well. 

3. Check References

References are an important resource. Be sure to request references, and check up on them. This is particularly useful if soliciting referrals doesn’t work in your situation — for instance, if you’re in a new city or state, and don’t yet know anyone in the area. 

You want to know about some of the homes the brokerage has sold in the past year. And ask for their list of homes for sale, so you can decide if their inventory reflects a good fit. 

4. Conduct Interviews

Since choosing a real estate broker is such an important decision, it’s a good idea to interview at least three. 

This will help you to gauge responsiveness and compatibility and find the best match for you. And bring your toughest questions to these interviews — remember, you’re trying to find someone who will do the best job for you

5. Check the Contract

Finally, take a close look at the contract. This may seem obvious, but it bears repeating. 

Check over all the terms, including the commission rate, and make sure they’re acceptable to you. Pay special attention to the length of the contract, too. Unless you’re not particularly motivated, anything over six months is probably much too long. 

Use These Five Tips on How to Choose a Brokerage

These simple steps are a good start to help you figure out how to choose a brokerage. It can be a daunting task, but it’s worth it to find the right real estate broker for your needs. 

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