A broker can be the right choice for some owners. These are the questions worth asking first — before you sign anything.
If you're thinking about selling, calling a broker often feels like the obvious first step. For a lot of owners, it's the only route they know exists.
It can be the right choice. But it's a decision worth going into with your eyes open, and most owners sign a listing agreement without asking questions they'd ask about almost any other major contract.
Here are the ones worth asking.
Brokerage fees typically run in the range of 6–12% of the sale price. Ask exactly what that percentage covers — marketing, negotiation, introductions — and whether it's payable regardless of how the eventual sale comes about, including if you find the buyer yourself.
Many listing agreements tie you in exclusively for six months or longer. Ask what happens if nothing's happened by the halfway point. Ask what it takes to exit the agreement early if it isn't working. This matters more than it seems at signing — it's easy to agree to a timeline you'd never accept once you're three months in and frustrated.
A listing is, by nature, a public or semi-public process. Ask exactly who gains access to your financials, your identity, and your business details — and whether your staff, competitors, or customers could plausibly find out you're selling before you're ready for that.
Most owners don't ask this, and it's one of the most important questions. Given that a meaningful share of listed businesses don't sell within the agreement period, ask directly what the plan is if that happens to yours — do you relist, renegotiate the price, or walk away having spent months and told people you're selling, with nothing to show for it?
Ask what the number is based on, specifically. In many cases, it's built from a multiple of recent earnings — a reasonable starting point, but rarely the whole picture of what a business is actually worth. It's worth understanding the reasoning behind the number, not just the number itself.
This isn't an argument against using a broker. For some owners, in some situations, it's the right process. It's an argument for asking the same questions you'd ask before any other major decision involving your life's work — because most owners don't, and the ones who do tend to end up with a better outcome, whichever route they choose.
If you'd rather skip the listing process altogether and have a direct, private conversation instead, that's a genuine alternative worth knowing about too.