“If you believe a business is built on relationships, make building them your business."
We have written before about the financial benefits of picking the right broker, but new research suggests owners can assess a broker’s value-add potential before ever speaking to them. A recent study focused on the “connectedness” of a broker, first looking at the size of that broker’s network, then looking deeper at the quality of those connections, and came to a surprising conclusion.1
Contrary to what you would think, they learned that a broker’s number of connections (i.e. a broker having an extensive Rolodex) actually does not have an effect on sale price. However, when a broker brings a buyer with whom he/she has a history of transactions, price goes up significantly. Specifically, one standard deviation in the number of sales a buyer has previously transacted with a broker in the prior 36 months was associated with a 1.7% higher sale price per square foot.
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