What is a Moving Broker?

What exactly is a moving broker? How are they different from moving companies, and should you trust them with your move?

In this week’s blog post, we look into what moving brokers do, potential red flags to be aware of, and the pros and cons of using a broker for your next move.

You may also like to read: FMCSA Transportation of Household Goods Update. The Federal Motor Carrier Safety Administration has recently updated its regulations to better protect consumers who are moving home. This guide, explains what these changes mean to you.

What is a Moving Broker?

A moving broker is a company that connects consumers with moving services.

They are essentially salespeople, they do not physically handle your move or transport your belongings.

Instead, brokers act as middlemen, arranging the details of your move with a moving company that will perform the actual services.

Brokers typically have a network of moving companies they work with.

Once you request a quote or book a service, they’ll reach out to these companies, get estimates, and schedule your move with the one that best fits your needs and budget.

Because brokers often work with multiple moving companies, they may offer more flexibility in scheduling and pricing compared to dealing with a single company directly.

Moving brokers can be anything from a full-scale telesales team to a single booking agent working for numerous movers.

You may also like to read: How to Avoid Moving Scams. In this guide, we share the most common scams that movers use and how to avoid them.

How Moving Brokers Differ From Moving Companies

It’s essential to understand the difference between a moving broker and a moving company to make an informed decision.

Moving Brokers

As mentioned earlier, brokers usually don’t own trucks or have their own moving crews.

Some may have a moving company in one state and then sell the moves they cannot service to another mover.

They function as a third party that arranges your move with a licensed moving company.

Brokers are required to be registered with the Federal Motor Carrier Safety Administration (FMCSA) and follow certain regulations, but they aren’t responsible for the execution of the move.

It is clearly shown on the FMCSA website whether the company is a broker or an actual mover so check carefully.

Moving Companies

A moving company, on the other hand, handles the actual labor, packing, transportation, and delivery of your goods.

They have their own trucks, equipment, and personnel.

When you book a moving company directly, you are dealing with the people who will carry out your move from start to finish.

You may also like to read: Protect Your Move DOT Website. In this guide, we give an overview of the DOT Website – Protect Your Move which offers invaluable information to ensure that you do not become a victim of unscrupulous movers. 

Red Flags to Watch Out For When Dealing With Moving Brokers

While many moving brokers are legitimate and offer valuable services, there are some risks involved, so here are some red flags to watch out for when dealing with a moving broker:

1. No Physical Address or Contact Information

If a broker cannot provide a physical address or has no direct contact number, this is a significant red flag.

Legitimate businesses have a traceable physical presence and contact details.

A lack of transparency could indicate a fly-by-night operation or a broker looking to evade responsibility if things go wrong.

A quick check online will show you where the business is registered and then street view will show if it is just an office, a depot, or even a residential address.

2. Extremely Low Estimates

While it’s tempting to go with the lowest price, be wary of brokers offering estimates that are significantly lower than competitors.

Lowball estimates are often a bait-and-switch tactic, where the price suddenly increases on moving day due to “unforeseen” charges.

Always ensure the estimate is binding or at least includes a clear explanation of how the final cost will be calculated.

3. Lack of Proper Licensing

All moving brokers must be registered with the FMCSA (Federal Motor Carrier Safety Administration) and have a USDOT (U.S. Department of Transportation) number.

You can verify a broker’s registration on the FMCSA website.

If a broker can’t provide these details, it’s a sign they may not be operating legally.

4. No Written Estimate

Always insist on a written estimate that outlines all potential costs.

A verbal quote or vague estimates over the phone may lead to surprise charges later on.

Be wary of brokers who avoid putting the estimate in writing or offering clear terms.

And never accept a quote that has not at least done a video inventory of the items you want moving.

5. Pushy Sales Tactics

If a broker pressures you to make an immediate decision or insists on a deposit before providing adequate information, consider it a warning sign.

High-pressure sales tactics are often used to trap customers into deals that may not be in their best interest.

Take your time deciding who your moving partner will be, do your research, then make the decision.

6. Lack of a Bill of Lading

The Bill of Lading is a crucial document in any move, outlining the terms of the move, the services provided, and the agreed-upon price.

If a broker doesn’t provide a Bill of Lading or tries to move forward without one, this is a significant red flag.

You may also like to read: Understanding the Bill of Lading. In this guide, we explain what a Bill of Lading is, what information it should contain, and why it is such an important document for anybody who is moving home.

Pros and Cons of Using a Moving Broker

Using a moving broker has both advantages and disadvantages. Depending on your situation, a broker may or may not be the best option for your move.

Pros of Using a Moving Broker

1. Access to a Larger Network

Moving brokers often work with a network of moving companies, which can increase your chances of finding a mover with availability on your desired date.

If you’re moving during a busy time, this can be a huge advantage.

2. Potentially Lower Prices

Brokers may be able to secure more competitive rates because they work with multiple moving companies and can negotiate on your behalf.

They can compare different options to find the one that suits your budget.

3. Convenience

Rather than contacting several moving companies yourself, a broker can save you time by doing the legwork for you.

They’ll gather quotes, compare services, and find movers to fit your needs, which can simplify the planning process.

Cons of Using a Moving Broker

1. Lack of Control

Since brokers are middlemen, they aren’t the ones physically handling your move.

This means you have less control over which moving company will be assigned to your move.

If the moving company isn’t reliable, you may face delays or issues that the broker won’t be able to fix directly.

Often you will be stuck between the mover and broker, both blaming each other, and neither taking any responsibility, especially in customer service matters.

2. Additional Fees

Brokers often charge fees for their services, and these can sometimes increase the overall cost of your move.

While they may negotiate lower prices with moving companies, the broker’s fees can offset those savings.

Be aware that sometimes any deposit taken is the brokers fee rather than a deposit for the actual move and you are unlikely to get that money back should you need to cancel the move.

3. Risk of Miscommunication

Since you’re working with a broker, there’s a chance that details may get lost or miscommunicated between you, the broker, and the actual moving company.

Miscommunication can lead to confusion on moving day, with movers not providing the expected services.

4. Potential for Scams

While many brokers operate legitimately, others may not.

Unscrupulous brokers may take your deposit and then vanish, or they might book your move with an unreliable company that damages your belongings or overcharges you.

Always get at least 3 quotes so that you can see what is the average cost of your move. Remember that if a price seems too good to be true then it most likely is.

It is extremely common that on moving day the actual mover will add extra charges as they weren’t aware of such or such or that the broker has underestimated your load size to give you a lower price.

The miscommunication could be a mistake, or it could be a deliberate ploy on the brokers’ part to get you to sign on the dotted line.

It is also sometimes the case that the movers themselves have a less than glowing reputation and the only way they can get work is through brokers.

It is in these circumstances that possessions are often held hostage until you pay the inflated charges.

You may also like: Types of Moving Estimates and Quotes. In this guide, you can watch a short video that explains the two types of different quotes and what the main differences are.

Is a Moving Broker Right for You?

Deciding whether to use a moving broker ultimately depends on your specific needs, budget, and comfort level.

If you value convenience, want access to a broader network of movers, and aren’t overly concerned about direct control over the moving company, a broker could be a good choice.

However, if you want to work directly with the people handling your move, booking a moving company directly might be the better option.

When working with a broker, always do your due diligence.

Verify their credentials, read reviews, ask for references, and make sure you fully understand the terms and costs involved.

Never be pressurized into signing anything, take your time, and research who you are dealing with.

Moving can be a stressful process, but with the right approach and a reliable team, it doesn’t have to be overwhelming.

Moving brokers can offer valuable services by connecting you with movers and helping to coordinate your move.

However, there are risks involved, especially if you don’t do your homework.

From the reviews on this site you will note that the vast majority of bad reviews originate through brokers that people have not thoroughly researched.

By being aware of red flags, understanding the pros and cons, and choosing a reputable broker, you can ensure a smooth, cost-effective move.

Always research thoroughly before making a decision, and never hesitate to ask questions or seek clarifications before entrusting someone with your valuable possessions.

Never trust anything you are told until you have satisfied yourself that it is the truth, this could save you a ton of money and heartache.

Be sure to check out our home moving blog which is packed with information that will make your home move cheaper, easier, and safer.

Good luck with your move.