HOW DO SELLERS AND BUYERS AVOID DB-TYPE BROKERS?

So how do sellers and buyers avoid DB-type brokers?

1. Learn how to spot them.

DB-type brokers usually sound smooth at the start. They throw around phrases like “sure buyer.” They make everything look frictionless because their priority is speed.

One major red flag is when they discourage legal review or make you feel guilty for consulting a lawyer—because many brokers know that lawyers often complicate, or even derail deals.

A proper broker should welcome due diligence, not fear it.

2. Sellers: Don’t release the entire professional fee upfront.

Some brokers are going to hate me for saying this, but frankly, it’s the proper thing to do.

One way sellers can protect themselves is by staggering the broker’s professional fee based on transaction milestones:

a. DOAS Signing — 50%

b. Release of the BIR CAR/eCAR — 30%

c. Release of the new title — 20%

This creates accountability throughout the transaction instead of incentivizing brokers to disappear right after the DOAS is signed. Because in reality, the hardest problems in real estate transactions usually appear AFTER the signing.

3. Buyers: DO NOT immediately contact the numbers posted on RE ads.

This part will probably upset even more brokers, but buyers should understand how the industry works.

If you contact the number on the ad directly (i.e., the “listing broker”), industry practice often treats that broker as both the Seller’s Broker and your Buyer’s Broker as well. That can make it difficult later if you want to bring in your own broker to independently represent your interests as the “Buyer’s Broker.”

Ideally, buyers should FIRST find a broker they trust, then let that broker coordinate with the listing broker on their behalf. That way, your broker becomes the “Buyer’s Broker,” while the listing broker only represents the seller as the “Seller’s Broker.”

And no, buyers typically do not separately pay their broker. In most cases, the professional fee paid by the seller is simply shared between the Buyer’s Broker and the Seller’s Broker.

While many listing brokers are ethical professionals, having independent representation gives buyers another layer of protection and due diligence.