What should I ask a broker before signing with them?

A listing agreement is easier to sign than it is to get out of, so the questions worth asking come before you sign, not after. A broker who answers these clearly and specifically is telling you something about how they will handle the actual sale.

Questions about experience and process

Ask how many businesses roughly your size and industry the broker has actually closed, how long a typical sale takes from listing to close in their experience, and who specifically will handle your file if the brokerage has more than one person. A broker’s brochure often overstates general experience compared to relevant experience.

• How is your fee calculated, and is there a retainer or minimum fee involved?
• How and when will you market my business, and how will you keep it confidential?
• How will you screen buyers before sharing financial details?
• What does the agreement say about term, exclusivity, and any tail provision?
• What happens if I want to end the agreement before it expires?

Questions about fees and the agreement itself

Get the fee structure explained in plain terms, including what happens if you bring your own buyer, and ask to see a sample listing agreement before the real one is put in front of you. Compare the term length and exit terms against what you have seen from other brokers.

Questions about references and communication

Ask for references from completed sales and actually call them, and ask how often you can expect updates once your business is listed. A broker who is reluctant to provide references, or who is vague about how communication will work, is worth a second look before you commit.