Abstract
The duty of the real estate broker in representing a buyer is to identify and present properties possessing qualities and characteristics sought by a buyer. In the discharge of this fiduciary responsibility, brokers have a variety of tools at their disposal. One such tool is a methodological ranking procedure that uses Taguchi loss functions (TLFs). The purpose of this paper is to introduce and discuss the application of TLFs to the selection of real estate properties by a broker. An example of the application of TLFs to real estate property selection is also presented. Because this tool identifies those properties that most closely match the buyer's preferences, choice criteria and needs, the utility of the buyer/broker relationship, as well as level of customer service and satisfaction, should be improved.