15 Jan 2014
Words Tim Admin

Hiring A Broker

Many if not most resident managers, moteliers and other accommodation operators originally would have come from another type of business, where you most likely would have hired staff, from senior managers right through to line staff. You would have to say that's a fair assumption. In many cases you would have advertised, used a professional recruitment firm or simply had staff drop in looking for employment. The usual practice would have been something along these lines. Prior to meeting with prospective employees face to face you would have requested they send in a resume of some type, detailing their experience, strong points and why they feel they would meet the criteria required to fill the vacancy. Upon perusing this and if the skills, expertise, presentation of the application and demonstrated abilities seemed to meet the criteria, you would generally then ask them in for a formal face to face interview, after all its far too important for the success of your business, often valued in the millions, not to ensure you are getting the best applicants available in today's market. Naturally if the interview proceeded well and you were satisfied to a point, the next stage would commence. The all important reference checking, can they perform the task, are they reliable and honest, did they complete the role to your satisfaction why do they stand out from the crowd, this you would ask. At that stage if you are satisfied, and only that stage, that the person has the track record, knowledge, and skills, and you have checked out their references: Now you may consider employing them to carry out the designated role. It's the least you can do to protect your asset. Then why, when many owners go to list often what is a multi-million business do they do so with the first broker that walks in the door. Don't laugh, it's a fact. There are numerous operators in the market who will entrust the marketing of their major asset to a broker/brokerage firm without the skills, knowledge, market penetration and most importantly negotiating skills, when they wouldn't hire staff to carry out minor tasks without going through the full process as above. The best, and quickest way to devalue your property, to potentially undersell the asset and worst still to have it priced and presented wrong and quickly have the stigma as a stale listing, is to give it to a non expert. It's safe to say most reasonable operators wouldn't hire staff this way so don't list your property without going through the same procedures as employing staff - after all that's what you are effectively doing - hiring the services of the best experienced broker you can. So would it not then be reasonable to carry out a similar process when deciding who to entrust handling your sale process. Interview recommended brokers to ensure they have the skills, knowledge, company exposure and support, ask for references, check their references, go through the same detailed process you would if you were hiring new managers - you owe it to yourself after all why take the risk Ask the broker to prepare the equivalent of a resume, detailing experience, recent sales activity, and a marketing program detailing how they would market and sell your property if appointed - remember this doesn't cost you anything as brokers are paid a success fee, only upon settlement of your sale. If they won't or can't produce this, then move on and interview the next one.