How a broker adds value in negotiation, coordination, risk management and more
By Joseph Marovitch
September 10, 2026
Last week, after publishing The Function of a Broker, I was asked a very good question. I was asked how a broker adds value in negotiation, coordination, risk management and more. This is a fair question that I am certain many sellers and buyers want to know.
First, among a broker’s many responsibilities, the top priority is protecting the client from legal and financial issues. This is done through acquired knowledge, continuous training, and amassed experience. With a clear understanding of the Real Estate Brokerage Act, which applies to all citizens, trained brokers use this knowledge to guide clients through legal pitfalls. I will go into greater detail shortly.
Among a broker’s many responsibilities, the top priority is protecting the client from legal and financial issues.
The broker must follow steps when working with those who are not professionals in the business:
- EDUCATE: Respectfully educate the client in the process selling or purchasing, the forms and how they work and their legal implications, the inspection process, warranty or no warranty, negotiation tactics to acquire desired terms and price, information gathering to be fully informed to negotiate the optimal terms, financing, bridge loan, b-lenders, location suitability, communication at open houses and arranged visit (what to say, what not to say, give nothing away and gather every piece of information you can), types of properties with pros and cons (ie: divided condos, undivided condos, best resale options, locations where property values grow quickest year to year, etc.).
. - GUIDANCE: The broker’s guidance to navigate the many variables in a real estate transaction by following a few rules:
– Purchase what you can afford only – debt shortens life
– The purchase must be easily sellable – pay what the property is worth or less, based on comparables, condition, location, and market conditions. Purchasing an overpriced house in an inexpensive area is a bad investment. Purchasing an underpriced house in an expensive area is a very good investment.
. - LIFEGUARD OR LIFE SAVER: Lifeguards at a swimming area serve to prevent accidents. When an accident occurs, the lifeguard becomes a lifesaver. The same applies to real estate brokers. The main job is to perform a transaction with as little conflict as possible by finding opportunity in every challenge. However, when a challenge arises, such as missing a deadline, a finance issue, an illegal view, a property infringement, or a title problem, the broker, with their training, knowledge and experience, can find a resolution and get the transaction back on track. With knowledge and experience, the broker can avoid most legal issues by meeting deadlines, giving proper advice on choosing a property, advising on accepting or countering an offer, completing offer forms correctly, and keeping meticulous records.
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Examples of issues that can derail a transaction:
– Incorrect information in the listing, e.g.: The master bedroom is stated as 15ft by 12 ft; after possession, it is determined the room is 12ft by 8 ft. This can reverse the purchase after signing.
– Completing the seller’s declaration with incorrect information. The answers are “yes,” “no,” or “I don’t know.” There is no room for guessing. Buyers buy what you are selling. If the goods they receive aren’t what is described, a legal issue can arise, which can reverse the sale or cost a lot of money.
. - RESOURCES: When the buyer needs a mortgage broker, b-lender, inspector, contractor, notary, real estate lawyer, surveyor, environmental phase 1 test, interior designer, or psychiatrist, the broker has these resources at their fingertips to provide to the client.
. - GLOBAL AND LOCAL MARKET CONDITIONS: A properly informed broker with knowledge of current global and local conditions can indicate possible future implications to inflation and interest rates and if these implications may provide positive or negative effects on the client’s investment either now or later. This information enables the client to be fully informed prior to completing the transaction.
. - More immediate broker advice is used to properly price the property, create an appropriate marketing strategy for the property, indicate what preparation is required before listing, indicate what should be upgraded, repaired or left to the buyer, vet the buyer for financing, prepare the seller with a pre-approval, indicate the price range and location that suit their budget and more.
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The knowledge required to operate as a broker and assist with a person’s most important investment decision and application is equivalent to a doctor’s diagnosis, a teacher’s ability to provide children with what they need to function in society, and a mechanic’s responsibility to ensure a car is safe.
I have only touched the tip of the iceberg. An investment in a residential property is a stepping stone to amass future wealth, open a business, fund children’s education, support retirement, and much more. The knowledge required to operate as a broker and assist with a person’s most important investment decision and application is equivalent to a doctor’s diagnosis, a teacher’s ability to provide children with what they need to function in society, and a mechanic’s responsibility to ensure a car is safe. Mistakes in any of these professions are costly both physically, financially and mentally. If you want to delve further into these topics, don’t hesitate to contact me via the magazine, email, or phone.
These articles summarize the information. If you have questions or comments, or want to discuss further, please use 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
Yesterday, at one station in Montreal, gas was over $205.9 a litre. This is because a total lack of negotiation skills, replaced by insults, threats and violence, is escalating a war nobody wants and cutting off the supply of oil.
The man sitting in the President’s chair, with an incompetent cabinet, implemented 50% tariffs on billions of dollars of Canadian goods. In turn, Canada retaliated in kind. The good news we have received over the past few months regarding a stabilizing market is now in a precarious position. Keep an eye on inflation and interest rates, as these determine supply and demand for buying, selling and rentals in the market.
The “President” continues to taunt Canadians with the 51st state threat and continuous insults. Never forget the people put him there.
Keep an eye on inflation and interest rates, as these determine supply and demand for buying, selling and rentals in the market.
Even if changes take place and the Republicans lose the Senate, it will take years to repair the damage to the world economy and the U.S. reputation, if ever. In the short term, over 1 to 3 years, Canada may recover by forming new trade agreements with other countries. However, the next few years may be financially stressful.
As always, opportunities can be found in conflict and challenges. Contact me for more information
Till next week, take care and have a wonderful weekend!
LET’S NOT FORGET THAT PEOPLE WITH CANCER ARE VULNERABLE TOO!
You are invited to keep giving to the following organizations since it’s now more important than ever to support cancer research! Click on the logos below to find out how:
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Joseph Marovitch has worked in the service industry for over 30 years. He was first director of Camp Maromac, a summer camp for children, before becoming a real estate broker, where he applies the same values of reliability and integrity. You can reach him at 514 825-8771 or at josephmarovitch@gmail.com
