How to Find a Competent Broker
If you want to find an honest and competent broker, ask them if they practice dual agency.
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Okay, so then, how does one find a competent broker? How does one cut through the nonsense? Well I may not have a perfect answer, but based on years of experience dealing with brokers, I do have a theory:
There is a positive correlation between competence and honesty.
I put it in the Introduction: Competence is a character trait and a function of integrity. I think an honest person feels duty-bound to be competent. Or, to be honest about their lack of competence. Or, would do something to become competent. I think it is also true that a competent person is more likely to be honest. Right? They certainly have less to be dishonest about. In any case, both honesty and competence spring from integrity.
At the end of Chapter Six, I suggested that if you wanted to find an honest broker, ask them if they practice dual agency.
So here, let me extend that advice: If you want to find an honest and competent broker, ask them if they practice dual agency. If nothing else, when you ask a broker about dual agency, it will lead to a conversation that will help you make a judgment on both their honesty and their competence.
But do not lead them. Ask an open-ended question: What do you think of dual agency? And then wait. Don’t say any more, don’t explain, don’t clarify. If the answer is anything other than an immediate: I do not practice dual agency, then you have a problem. Do not allow them to answer you with a question. Not even: What do you mean by dual agency? Because they damn well know exactly what you mean. No questions at all. If you get a question, show them the door. And listen for scripted language. I do not practice dual agency requires no scripts. Anything else, anything, thank them for their time and show them the door. Only after a firm and early, I do not practice dual agency, continue the conversation.
Now the broker may respond with something to do with designated agency. You may remember we mentioned this, in passing, in Chapter Six. Designated agency is when two brokers work for the same firm, but each represent one of the parties. Do not be sidetracked by this. If the broker wants to get into the distinction between single-agent dual agency and designated agency, fine. Let them. But I do not practice single-agent dual agency needs to be a firm and early part of what they have to say. For example, they may respond with: Well I don’t do it myself, but if another broker in my firm has the other side, we do allow that. That’s okay, but it needs to be clear and fast. Because, really, it does not require anything more. Otherwise, the door.
Do not allow the broker the time to realize what you want the answer to be. Because then you will get the answer you want. Of course you will. No, it needs to be, it must be, firm and early, and preferably, immediate.
And let me add this: Most brokers who do not practice dual agency have strong feelings about it. Like me, they believe it is unethical. So often, if you happen to ask one of these brokers the question, you will get an earful. You will get your firm and early answer, and then some. That’s okay; maybe you have found someone who is passionate about ethics and their fiduciary duties. You know, someone worthy of your business.
I hope by now that I have proven a primary thesis of this book: Competence is a choice. Brokers choose where to focus their attention. And as with honesty, the choice of competence is really a question of integrity.
As I mentioned earlier, if we want to improve the business, it is incumbent on consumers to demand better brokers. This starts with asking the right questions. And the dual agency question is pivotal.
Oh, and our top producer with all the authoritative videos: Huge practitioner of dual agency and coming soon. Of course she is.