Choose your Broker

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Compare what Brokers charge and what they do. The sale of your home is an important transaction and it’s a lot of your money, protect it. If you hire a Broker merely because they are “a friend” or because that is who you bought the house with, make sure they are a good friend because you may be "gifting" them a lot of YOUR money for a service that is no different than a lower cost broker. Things like how long a Broker has lived somewhere, the friends they keep, or if they work with your kids has little relevance to selling your home.

1) USE FULL TIME BROKERS. Next to your 401k your home is generally one of your largest assets. Would you feel comfortable using a part-time retirement fund manager? Why would your home investment be any less important than your retirement? As cornerstones of hiring most employers usually look at the applicant’s education, and their experience, you should do the same.

2) Seller AND Buyer Commissions are negotiable. NEGOCIATE -You should compare costs to services provided. Ask Brokers to negotiate commissions.  Some brokers will tell you it is not how much you pay, it is the service you get. That is easy to say when it is not their money.  We suggest seeking full-service Brokers offering the best value. At Atomic we don’t carry the cost of an office or office personnel and we pass our savings on to you. 

3) Be blunt, ask Brokers what they do to justify what they charge and what is unique about the service they provide, most brokerages provide very similar services.  Ask "Can you provide me with a list or what your service includes?” Ask how do they differ from the XYZ company?

4) Some brokers will tell you they are the highest producer out there. Perhaps they are, perhaps that’s merely exaggerating. If they are so busy do they really have time to work or care about your home investment? Does them being busy translate into more money or better service for you, or just them? . It’s a balancing act, if a broker is too small, they may not be very competent and if  too busy they may not really care about you. 

5) Ask where the brokerage is based . Brokerages that are not locally based sometimes don’t understand the local nuances and their local brokers are not well trained because their leadership is somewhere else and has little interaction with their local broker.

6) Some  Broker’s will imply they can sell your home for more money or faster than others and will tell you any value you need to hear to get your business. Ask the broker to justify the value they present to you. Ask to see ALL the properties that have sold that are similar in size and condition to yours. If they can’t show you the data perhaps interview other brokers that can. 

7)  Don’t be pressured into using a Brokerage that may not be a good fit for you. You are an adult and can make rational decisions based on data, without high pressure. A professional Broker should encourage you to make the best decision for you even if it's not best for them. 

David Houck is the Qualifying Broker for Atomic Realty, with over 40 years experience, a BS in math and physics and a doctorate in law. For more details on these issues and free selling and buying tips see AtomicRealty.net

01-23--25

  Should Your Real Estate Broker Be a Fiduciary or a Transaction Broker? What’s Best for You?

Every now and then, clients ask truly insightful questions. One we were recently asked was: “Do you work as fiduciaries or as transaction brokers?” The short answer is—we can do either, depending on what best suits your needs.

In most cases, we believe that acting as a transaction broker better serves both buyers and sellers. Inexperienced brokers will try to convince you that representing you alone makes them better serve your needs - maybe not so much. Why? Because fiduciary representation comes with certain limitations. When a broker acts as a fiduciary, they owe full loyalty to one party—typically the seller or buyer—not both. If that broker later finds a potential buyer for their fiduciary client, they can't represent both sides without the client waiving fiduciary rights, which creates a dual agency situation which again doesn't serve one party alone.  This limits your options and can reduce your buyer or seller pool. After all, a fiduciary “can’t serve two masters.”

What Is a Fiduciary?

Fiduciaries—such as attorneys or asset managers—owe their clients a high level of trust and loyalty. In law school, we learned to remember fiduciary duties using the acronym OLD CAR:

• Obedience – Follow all lawful instructions from the client.
• Loyalty – Prioritize your client’s interests above your own and      avoid conflicts.
• Disclosure – Share any relevant information that could benefit your      client.
• Confidentiality – Keep your client’s personal information and      motivations private.
• Accounting – Accurately handle and report all financial matters.
• Reasonable Care – Use skill, diligence, and expertise in service of      the client.

What About Transaction Brokers?

Even though transaction brokers are not fiduciaries, they are still held to high professional standards—and in many cases, they offer greater flexibility. Here's what you can expect from a qualified transaction broker:

• Honesty and fair dealing with all parties.
• Compliance with all applicable laws and regulations.
• Execution of all written agreements.
• Competence in their areas of practice.
• Accounting for all funds received or disbursed.
• Confidentiality of sensitive information for both buyer and seller.
  • For example, we do not disclose if a seller is       willing to accept less, or if a buyer is willing to pay more—unless       authorized to do so.
• Full disclosure of any material facts or conflicts of      interest—whether business, personal, or familial.
• Full transparency about any known adverse material facts affecting      the property.
• Reasonable care in handling all aspects of the transaction. We back      this with a solid understanding of real estate laws and practices, and we      ensure everything is documented in writing.

In Summary

Whether you choose fiduciary or transaction broker representation, the most important factor is working with a professional who puts your best interest first—not theirs. We’re committed to guiding you through the process with transparency, integrity, and the experience you deserve.

05-19-25