Real Estate Talk:
What does a broker do?

About listing brokers, selling brokers and commissions

By Joseph Marovitch

Updated November 13, 2025

In speaking with associates not in the real estate profession about real estate brokers who sell for clients, the impression they seem to have is that a real estate broker places a sign on the property, waits for a buyer, sells the property, and collects a whopping commission.

The impression of a broker for buying is not much different. The sentiment is that a broker provides listings, arranges visits, a sale takes place, and the broker receives a whopping commission. These impressions cannot be further from the truth, and clients who have used brokers know this.

The listing broker, upon researching the property, the area, the current market, and comparable sold and active listings, provides a price scale into which the subject property falls.

In this article, three points will be addressed: the functions of the listing broker and the selling broker, and commissions.

First, there is the service a listing broker provides, which is as follows:

The listing broker, upon researching the property, the area, the current market, and comparable sold and active listings, provides a price scale into which the subject property falls, e.g., $500,000 to $800,000.
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The property can sell within the price scale, depending on two factors: the property’s condition and how quickly the seller wants to sell.
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Note that these two factors, along with market supply and demand, determine the value of the property. If the property appeals to the buyer and the inspection is a pass, the buyer will purchase the home. Contractors and engineers care about the construction and materials used. The average buyer only cares that the property meets the criteria they want and is in good condition. If a seller believes the property’s value is higher because of the materials used or the construction is of high quality, and therefore the property’s value should be higher than the scale indicates, the property will not sell. The average buyer cares about location, aesthetics, and price.
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If there are undetermined issues in the property, the broker may advise that a pre-inspection be performed so that all issues can be placed in the required seller’s declaration, which must be signed and submitted with the promise to purchase. This avoids renegotiation after the offer is made.
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The broker then takes measurements, photos, video and prepares the market campaign with descriptions.
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The broker then decides on the appropriate audience, based on location and price, and chooses the publications to advertise in and the addresses to mail flyers and letters, to target the campaign to the right buyers. This saves valuable time by helping find the right buyers and sell quickly.
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The broker then arranges open houses, schedules visits, emails, and daily mailings along with calling, social media and networking.
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The broker qualifies all inquiries by verifying the buyer’s finances or pre-approval, along with the buyer’s intent. If it is apparent that the buyer’s budget is far below the asking price and the buyer is hoping to purchase at a discount, the broker can either explain the facts. If the buyer still wishes to visit, once the price range is clear, they may be willing to increase their budget or search for something within their budget.
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Upon receiving an offer, the broker will discuss it with the seller and advise on a course of action: either refuse, accept, or counter the offer.
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Once an offer is accepted with conditions, the broker will provide the buyer’s broker with all required documents to facilitate the inspector, notary, and mortgage broker to ensure all deadlines in the offer are met.
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The listing broker will attend the inspection arranged by the buyer’s broker in case there are issues not indicated in the seller’s declaration that may require renegotiation.
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Prior to the signing at the notary, the broker will then examine the notary’s adjustment sheet to ensure the seller’s either pays or receives what they are entitled to for prepaid or unpaid taxes, service contracts and so on.
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The broker then attends the signing to answer questions and ensure the process runs smoothly and successfully.
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The listing broker is then available after the buyer’s possession to answer questions, address issues that may arise, and provide advice.

‘The selling broker first gathers information about the buyer: how many bedrooms and bathrooms are required, parking and garage spaces, preferred locations, and the price range to purchase.’

The second issue is the service of the selling broker, the broker that brings a buyer, and what their function is:

The selling broker first gathers information about the buyer, such as their name, address, phone number, whether there are children, how many and their ages, whether there is a pet, how many bedrooms and bathrooms are required, parking and garage spaces, preferred locations, and the price range to purchase. The broker must also determine and verify the buyer’s financial situation, depending on whether the buyer is paying cash or obtaining a mortgage.
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The buyer and broker must also determine whether there is chemistry and trust at the outset, since there are many ways for a buyer to breach a buyer’s contract.
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The broker then provides the buyer with listings based on the buyer’s criteria.
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The broker arranges visits and accompanies the buyer to view properties.
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Once the buyer decides on a property they wish to make an offer on, the broker checks if the property is in arrears with the bank for unpaid mortgage fees, if there are any rights on the property from unpaid service providers, and if there are any 60-day assessments from the bank or government and how many days are left in the assessment. This information is used to determine the amount of stress on the property, the offer price, and negotiation tactics to purchase at the best possible price and terms.
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The broker will then prepare and provide all documents, including the promise to purchase, counteroffers, annexes, and amendments.
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The broker negotiates the price and terms with the seller and their broker.
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The broker then facilitates the conditions for examination of documents, inspection, financing, and more, if required, such as phase one environmental tests and the acquisition of a new certificate of location.
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Once all conditions are satisfied, the broker attends the signing to ensure a successful transaction and closing and remains available after possession.

Note that both the selling broker and listing broker are required to verify every piece of information, from the client’s statements to their finances and identity, via documentation as proof.

‘… both the selling broker and listing broker are required to verify every piece of information, from the client’s statements to their finances and identity, via documentation as proof.’

Finally, the issue of commission:

Brokers only get compensated if they buy or sell a property within the deadline of the brokerage contract. Brokers are not paid if they do not buy or sell, even if they spend time and money on gas, paperwork, ads, and other marketing. A broker can spend thousands of dollars on a property and lose it all. Therefore, each listing is a gamble. This is why the broker must price correctly and carefully target the campaign to the right audience.
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When the broker is paid the commission, it is then split among the broker’s office, taxes, and the selling broker who brought the buyer. The commission the broker receives is gross. From the gross commission, the broker must deduct all incurred expenses. In the end, the broker can be left with 25% or less of the commission.

In summary, the listing broker saves the client time, money, and legal issues with their expertise, experience, client base, and resources. The property exposure from a broker is not just friends and family, but national and global. The more interest the broker generates, the higher the price the property sells for and the better the terms.

For buyers, the broker also saves time, money and legal issues, and provides resources such as mortgage brokers, inspectors, notaries, lawyers, interior designers, architects, and contractors.

It all comes down to the broker and their network

A recognizable and reputable banner such as Remax, Royal Lepage or Sutton always helps sell a property, but when it comes down to the basic premise, it is the individual broker that makes or breaks the difference. Expertise in pricing, marketing, real estate law, contracts and negotiation is the foundation of being a successful broker.

The second part is a broker’s reach, influence, and the quality of their network. If a broker comes from the banking industry, high-end retail, or a similar background with high-net-worth clients, that broker will have many qualified potential buyers. Each broker has a network of buyers, sellers and resources such as inspectors, notaries, mortgage brokers and more. The more qualified and extensive a broker’s network, the quicker a property will sell and for the proper market value. However, every new broker has the potential to build a wide, varied, and qualified network of potential buyers, the longer they succeed in the real estate industry.

The longer a broker has been in the business, the larger their network. This means that, at the start of a broker’s career, his or her network is generally made up of family members, friends and associates. As they gain experience, the brokers’ network expands through connections, successful transactions and referrals. The larger a broker’s network of potential and qualified buyers is, the faster the property will sell, and the greater the added value.

‘A recognizable and reputable banner… always helps sell a property but when it comes down to the basic premise, it is the individual broker that makes or breaks the difference.’

Young brokers or brokers who entered the industry from other fields that entail office work or hourly wages must build a network by starting with family, friends, and associates, and by engaging in ongoing networking and follow-up to stay in touch with those they have met. Excellent service is required as well if referrals are to follow.

Then, some brokers enter the industry from fields where they already have a network of potential buyers and sellers who trust them. These people come from fields such as teaching, managerial positions, banking, entertainment, summer camps, politics – any field where one person works with or serves the many.

A home is the largest investment most people acquire. The property, in most cases, represents life savings, retirement, future business endeavours, the children’s education and more. A broker is a protector, event planner, confidant, and the calm voice in a sea of possible issues. Brokers are obligated to represent, defend and protect their clients. A good broker finds solutions and opportunities in every issue. Brokers, through training and experience, are experts in conflict resolution.

The information in these articles is summary. Should you have questions, comments or wish to discuss further, please refer to the comments section at the bottom of the page or contact me directly. As well, to view past articles, click here.

State Of The Market

From a seller’s perspective, the real estate market appears robust, with rising property values driven by low interest rates, high demand, and limited supply over the past few months. From a buyer’s perspective, the market appears to be improving with growing supply and low interest rates. The average Montreal home price is $676,000, or up 7.1% in September, according to the CMHC. There has been a 10% increase in sales in the month of September, or 3,530 sales, and listings have risen 7% over the past year. The average days on market in Montreal is 38 for single homes.

‘The average Montreal home price is $676,000, or up 7.1% in September, according to the CMHC. There has been a 10% increase in sales in the month of September… and listings have risen 7% over the past year.’

There is a sense that the U.S. tariff threat and its application are easing off amid current events in U.S. politics. All indicators suggest the market is improving and becoming more balanced. These are all good signs for the future market in 2026.

Times have been dark, but there appears to be a horizon unfolding.

For further discussion, leave a comment or call me directly.

Have a great week!

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Joseph Marovitch has worked in the service industry for over 30 years. His first career was working with families from Westmount and surrounding areas, hosting children between the ages of 6 to 16 as the owner and director of Camp Maromac, a sports and arts sleep-away summer camp established in 1968. Using the same strengths caring for the families, such as reliability, integrity, honesty and a deep sense of protecting the interests of those he is responsible for, Joseph applies this to his present real estate broker career. Should you have questions please feel free to contact Joseph Marovitch at 514 825-8771, or josephmarovitch@gmail.com