I'm a broker. I hold a broker's license in Nebraska and I run a brokerage. So I'm going to tell you something that might sound counterintuitive coming from someone in my position.

Most investors hire the wrong broker.

Not a bad broker, necessarily. Just the wrong one for what they need. They pick the name they recognize, the person who sold their buddy's house, or whoever shows up first on Google. And then they wonder why the process felt disconnected, why the deal took twice as long, or why they left money on the table.

Choosing a commercial broker is one of the highest-leverage decisions you will make in a transaction. The right broker can find you deals you would never see, negotiate terms that save you six figures, and close transactions that would have fallen apart without them. The wrong one costs you time, money, and opportunities you will never know you missed.

Here's how to evaluate before you commit.

Transaction History Is the Resume

The first question you should ask any broker is simple: "How many commercial transactions have you closed in the last 24 months?"

Not listed. Closed. Listings are intentions. Closings are results.

What you want to hear: A specific number, with specifics about deal type, size, and market. "I closed 14 commercial transactions in the last two years, mostly multifamily in the Omaha metro, ranging from $400,000 to $2.8 million." That tells you everything.

What should concern you: Vague answers. "I've done a number of deals." "I work in commercial and residential." "I'm growing my commercial practice." Translation: they don't have the volume to demonstrate competence.

This isn't about being elitist. Newer brokers can be excellent. But you're trusting this person with a transaction that could represent years of your savings and effort. You deserve someone who has done this before. Repeatedly.

Ask for a deal sheet. A serious commercial broker will have a one-pager or spreadsheet showing their recent transactions, including property type, price, and their role (buyer's agent, listing agent, or dual). If they don't have one, that tells you something about how they run their business.

Market Specialization Matters

Commercial real estate isn't one market. It's a dozen markets that happen to share a label. Multifamily is different from retail. Retail is different from industrial. Industrial is different from office. And a broker who's excellent in one sector may be mediocre in another.

Ask: "What percentage of your business is in [your asset class]?"

If you're buying or selling multifamily, you want a broker where multifamily is at least 50% of their business. Ideally more. A broker who closes 20 deals a year but only 3 are multifamily isn't a multifamily broker. They're a broker who occasionally touches multifamily.

Why does this matter? Because a specialized broker has:

Better deal flow. They hear about off-market opportunities because they're talking to multifamily owners every day.

Better comps. They know what buildings actually sold for, not just what they listed for. Their pricing opinion is based on data they have personally been involved in generating.

Better relationships. They know the other brokers in the niche. They know the lenders who will finance the deal. They know the appraisers, inspectors, and attorneys who handle these transactions.

Better instincts. They can look at a deal and spot the problems in five minutes because they have seen the same patterns dozens of times.

I specialize in the Midwest multifamily and small commercial market. When someone asks me to help them sell a retail strip center in Dallas, I refer them to someone who lives in that market every day. Not because I couldn't figure it out, but because the investor deserves someone who already knows.

Investor Mindset vs. Retail Mindset

This is the difference most people don't think about, and it might be the most important factor on this list.

A residential broker thinks about a property as a home. Curb appeal, school district, kitchen finishes. They sell based on emotion and lifestyle. That's appropriate for residential transactions because homebuyers make emotionally-driven decisions.

A commercial broker with an investor mindset thinks about a property as a financial instrument. NOI, cap rate, cash-on-cash return, rent roll quality, expense ratio, deferred maintenance, refinance potential. They evaluate deals the way you would evaluate a stock: based on what it earns and what it's worth.

Test this in the first conversation. When you describe a property you're interested in, listen to the broker's first questions. If they ask about the kitchen finishes and the neighborhood vibe, they're a residential broker wearing a commercial hat. If they ask for the rent roll, T-12, and cap rate, they speak your language.

Ask them to underwrite a deal verbally. Give them the basics of a property you're considering and ask them to walk you through how they would evaluate it. A strong commercial broker will start talking about NOI reconstruction, expense analysis, debt sizing, and return metrics without hesitation. If they pivot to "well, it's a great area," move on.

Communication Standards

This is where deals die or thrive, and where the gap between good brokers and great ones is widest.

Response time. In a competitive market, deals move fast. A broker who takes 48 hours to return your call will cost you deals. My standard: return every call and email within 4 hours during business hours. If I'm in a meeting, you get an acknowledgment text. Ask your broker what their response time commitment is. If they don't have one, that's an answer.

Proactive updates. A great broker doesn't wait for you to ask what's happening. They send you updates before you wonder. Weekly during active transactions. Monthly on market activity when you aren't in a deal. "Nothing new" is a perfectly acceptable update. Silence isn't.

Transparency on challenges. Deals hit problems. Appraisals come in low. Inspections reveal issues. Financing conditions change. A great broker tells you about problems immediately, along with proposed solutions. A bad broker hides problems until they become crises, or worse, says "everything is fine" when it isn't.

Ask for references, then actually call them. Not the references the broker gives you. Those will be glowing. Ask for the contact information of their last three closed transactions. Talk to those clients. Ask:

Was the broker responsive throughout the transaction?

Were there any surprises the broker should have anticipated?

Would you use them again?

What's one thing they could have done better?

That last question is the most revealing. Everyone has something. The broker who has no areas for improvement according to their references either has cherry-picked references or hasn't done enough deals to have been tested.

Fee Structure and Alignment

Commercial broker commissions are negotiable. Standard rates vary by market and deal size, but here's the general range.

Multifamily and commercial sales: 4% to 6% on smaller transactions (under $1 million). 2% to 4% on larger deals ($1 million to $5 million). Negotiable above $5 million.

Buyer representation: Some brokers charge the buyer directly. Some collect from the listing broker's split. Some do both depending on the deal. Clarify this upfront so there are no surprises at closing.

Flat fee or hybrid structures: For repeat clients or portfolio transactions, flat fees or hybrid structures (reduced percentage plus a flat transaction fee) can make sense. If you're buying three buildings this year, negotiate a rate that reflects the volume.

The alignment question. Your broker's incentive is to close the deal. Your incentive is to close the right deal at the right price. These aren't always the same thing. A broker earning $30,000 on a commission isn't going to tell you to walk away from a deal over a $15,000 price dispute, even if walking away is the right move for you.

The best brokers will tell you to walk away when the deal is wrong, because they know that earning your trust on one deal means they get your business for the next ten. Ask about a time they advised a client not to proceed with a transaction. If they can't give you a specific example, they're either too new or too commission-focused.

The Due Diligence Support Test

A great commercial broker doesn't just find deals and negotiate price. They support you through due diligence. That means:

Helping you interpret the T-12 and rent roll

Connecting you with lenders, inspectors, and attorneys they trust

Reviewing the title report for potential issues

Flagging environmental or zoning concerns before you spend money on reports

Coordinating between your team (attorney, lender, inspector) and the seller's team

Ask: "What does your due diligence support look like?" A broker who says "that's between you and your attorney" isn't wrong, but they're leaving value on the table. A broker who says "I will coordinate the entire process, flag issues as they come up, and make sure nothing slips through the cracks" is worth every penny of their commission.

My Bias and My Advice

I will be upfront. I'm a broker writing about how to choose a broker. I have skin in this game. So take my bias into account.

But here's what I will tell you. The right broker will make you money. The wrong broker will cost you money. And the difference between the two isn't luck or personality. It's track record, specialization, communication discipline, and whether they think like an investor or a salesperson.

Interview at least three. Ask hard questions. Check references. And choose the one who talks about your returns before they talk about their commission.

If you're buying or selling a real estate business, we've been through the process and know where the landmines are. Reach out at Tanner@TopTierInvestmentFirm.com.

Tanner Sherman is the Principal and Managing Broker of Top Tier Investment Firm in Omaha, Nebraska. He co-hosts the Freedom Fighter Podcast with Ryan of Avara Investments.

How to Evaluate a Commercial Broker Before You Hire One