What Seasoned Brokers Bring to the Table

LOS ANGELES— “When considering a broker, never forget 'It takes a year to get a year's experience,'” Patrick Toomey, Managing Partner with Matthews Retail Group, Inc., tells GlobeSt.com. We spoke with Toomey exclusively about what an experienced broker or team adds to the business and how to avoid pitfalls when hiring a broker.

GlobeSt.com: What value does an experienced broker add to a deal?

Toomey: I have a saying that “it takes a year to get a year's experience.” What I mean is that you need time and deal flow to obtain experience, and experience adds value to the client. A buyer and seller are in the market one deal at a time. Very few buyers and sellers do the type of volume that experienced brokers do, and even those buyers or sellers who do a large volume need someone with experience who understands how to get deals done. The broker functions as intermediary, coach and counselor to provide perspective, advice and solutions during the inevitable challenges in the real estate transactions. Good brokers must provide a necessary and valuable buffer between buyers and sellers.

GlobeSt.com: What tasks does a good broker provide for the client?

Toomey: A great broker will know how to properly manage expectations of both buyer and seller throughout the deal process. A great broker also needs to be a source of deal flow to his or her clients. Brokers who are active in the market should provide opportunities to their clients, in addition to the advice that they can give. Brokers also will advise on underwriting deals. And, of course, brokers ought to know current market conditions and their impact on value to their clients.  Properly managed expectations, market knowledge, deal flow, and solutions are all part of a great broker's value to his or her clients.

GlobeSt.com: What are the advantages of working for a high-volume team as opposed to an individual broker?

Toomey: While an individual broker will likely have some extra time for his or her deal, a high volume team can provide a literal “pulse” on the market through its deal volume. If a team is doing hundreds of deals a year, that team will have more relevant perspective than one doing a dozen deals a year. The value that this volume provides to the client is the ability to use current transaction information to make more educated, relevant decisions in the marketplace. Even current technology is up to 6 months behind in transaction information, however a high-volume team will have up-to-the-minute information on deals that are being done in the market. A broker who is not very active in the market cannot have that perspective. In addition, a high volume team should have a larger database of proven performing buyers and buyer agents to directly market to. Lastly, a high-volume brokerage will have more access to off-market opportunities, which most buyers appreciate seeing.

GlobeSt.com: What is important in choosing a brokerage team in order to avoid pitfalls?

Toomey: The value of a brokerage team is a diverse skill set and experience in making deals happen. Nothing replaces experience, however there is value to clients in having more than one set of eyes on a deal. On the Matthews Retail Group, we like to say, “One plus one really does equal three” as we see the benefit of collaborating and sharing information. I have worked in the industry nearly 30 years, yet I always have something to gain from discussing a deal with my partners and team members, even those newer in the business. Occasionally we will see clients opt for less experienced agents who may take lower fees, however that strategy will work against a Seller when it comes to the inevitable bumps in the road one hits during transactions. In the short term there is lower cost, but without experience you may be at risk, or at least doing most of the work yourself. Typically the reason a broker will offer a lower fee is because they plan on spending less dollars and/or time on the marketing of the property, and generally the price will reflect that lower level of commitment. 

The guiding principle of my brokerage practice is doing as I would like being done to me, whether that be a fellow agent, a listing client, or a buyer. This attitude causes you to stay in communication, respond professionally and thoroughly, and follow through on tasks through completion, among other things. I was on the client side for many years, and now I try to do what I expected brokers to do for me as a client. I draw on my many experiences with many high-quality clients and brokers I've worked with in the past to provide a better experience for clients of my own, and those of the Matthews Retail Group.