Once you've decided that you want a real estate broker or agent to help you sell your home, you'll probably want to know how to go about finding and selecting the right broker. You can find a real estate broker by asking for referrals and then interviewing the brokers about what they can do for you.

First of all, a real estate broker is a person who, for a commission or fee, is employed by a home owner to negotiate the sale, purchase, lease or exchange of his or her property to a third party (a buyer or lessee). The legal relationship between the real estate broker and the home owner is that of an agent and a principal; an agent is someone who acts on behalf of another person, called the principal.

Typically, people who offer services to buy and sell real estate (other than their own) for a commission are required by state law to be licensed as real estate brokers. Real estate agents, also called real estate salespersons, must have sponsoring brokers, with whom they are associated, and who supervise their activities. Commissions on sales will usually be paid to the agent's broker. Agents and salespersons can have their own licensing requirements, depending on state law and regulations. In lay terms, "real estate broker" and "real estate agent" are often used interchangeably to describe the real estate professional who assists in buying and selling real estate. They may or may not have the same kind of authority and license.

A broker can work for a buyer or a seller of real property, or, with proper disclosure, can sometimes work for both the buyer and the seller in a transaction, depending on state law and regulations. Many states have standardized disclosure forms that must be presented by real estate brokers and salespersons to their clients and prospective clients in order to avoid confusion over the roles and responsibilities of those involved in a real estate transaction.

Also, real estate brokers have what is called a "fiduciary relationship" with their clients, which means that your broker must act in your best interest at all times.

Beginning the Search

In beginning your search for a real estate broker or agent, you might consider asking your friends, family or business associates for a referral. Most people find their real estate broker through this method. Another way to find a broker is to look for advertisements in the telephone directory, on the Internet or on television. You may also drive around and see if a broker seems to be doing a lot of business in a particular neighborhood. See if they are offering services that might meet your needs.

Most residential real estate firms employ ten or fewer brokers or salespersons, so don't be put off by the size of the firm. You may want to find out what tasks the broker or salesperson delegates to support staff as well.

Interviewing a Real Estate Broker or Salesperson

After you have found the names of some potential real estate brokers, you will want to interview each one. It is important to find someone you feel comfortable working with throughout the duration of the home sale transaction. Here are some possible interview questions:

  • How is the sales commission paid?
  • What marketing strategies will be used to sell your home?
  • Will the real estate broker place your home on a multiple listing service, which is a collection of listings from participating brokers?
  • How long has the real estate broker been working in the field of real estate?
  • Will the real estate broker handle the sale of your home individually or will she share the responsibility with other brokers?
  • What is the real estate broker's opinion as to how you can show your home to its best advantage?
  • Will the real estate broker hold one or more open houses?
  • What is the length of time you are bound by the listing contract, which is the agreement you make with the broker to sell your home?
  • How does the broker handle showings? Keep in mind that you have the option to designate certain days and times when you will allow your home to be shown.
  • If you plan to buy another home, ask about the services the real estate broker can provide to you as a buyer.
  • What does the real estate broker think your home is worth?
  • What is the approximate amount of your share of the closing costs?
  • Has the real estate broker ever had any complaints filed against him, been subjected to disciplinary action by the state's licensing authority, or had lawsuits filed against her?
  • Will the real estate broker be present for the home inspection?
  • Will the real estate broker be present for the closing?

Ask any other questions you deem appropriate. Your goal is to find a real estate broker whom you trust and with whom you feel comfortable. By interviewing several real estate brokers or agents and selecting the best candidate, you can rest assured that you have made a well-informed decision in selecting a real estate sales professional to assist you in the sale of your home.

If you have questions about the legal responsibilities of a real estate broker or the legal authority of a real estate agent or you would like an attorney to review a listing agreement, contact a real estate attorney in your area.

Questions for Your Attorney

  • The real estate broker I've selected presented me with a standardized listing agreement. Do you routinely recommend changes to the standard listing agreement used in my local area?
  • What is the duration of the listing agreement that real estate brokers are expecting in my area, given the slow market conditions? Are real estate brokers more flexible with their terms these days?
  • Can the real estate broker who sells my home also help me to purchase a new home?