How can you negotiate with real estate, insurance, and stock brokers?

I’d answer with questions regarding negotiating with a real estate agent. Are you buying or selling? What do you think is reasonable in terms of the commission you should pay? Usually you can interview different agents to understand what they charge, and then decide whether you feel there’s enough value in their fee to justify it.

Speaking as a Financial Advisor (FA), it is very seldom that a client will approach me knowing what cover they need although they may have an idea of the limit of their spend on the policy. FA's who are not "product" driven but are client centric, will do a proper analysis on your insurance needs. In my experience, a proper analysis often yields areas of over and under insurance. By correcting the imbalance, more often than not the client is able to afford the desired level of cover. The moral of the story: Take time to seek out a registered FA with a reputation of listening and identifying clients needs and not flogging products. You must feel comfortable that the FA is placing your interests first.

A great real estate broker will guide you and educate you by sending you to get qualified for financing prior to showing homes.They will also assist you in understanding current interest rates versus credit factors that can affect how much you can afford, along with current grants and bonds offered within a certain state or geographical area. They are extremely helpful in saving money using tools such as points paid by the seller, closing costs paid by the seller, etc. And for buyers, most of the time unless disclosed, they represent your interests alone and are paid by the seller. Buyer representative brokers are the one "true" free service to buyers so it is a no-brainer to seek their guidance.

Doing your homework prior to jumping into anything that is a large investment or purchase is always a good idea. A real estate broker's job is to assist you in gaining/saving as much money as possible dependent upon whom they represent.

As mentioned in my previous comment, it pays dividends to take time to seek out a reputable and registered FA that other people have come to trust. While life insurance commission is universally applied by insurance companies, there are Financial Planners (FP) who are willing to forego 100% of their commission in favour of a negotiable professional fee which can be paid annually or monthly, much like a gym membership. This is not only a lot more cost effective for the insured, but also give you 24 hour access to your FP for advice on all aspects of your finances. Although this new generation of FP are hard to find, this is the future of consultant remuneration.

Yes, we tend to use a lot of industry jargon that is easy for the broker to understand and it is the way we speak to other brokers. We can sometimes forget not everyone understands what we are saying, so if something goes over your head, please ask up and do not feel embarrassed. We are here to educate you.

Make sure that you are getting what you are paying for. The "fine print" is there in every contract. Seldom would I recommend the cheapest premium to a client; it is cheap for a reason! A closer look will reveal a lot of restrictions and exclusions. It is best to ask your FA to prepare a schedule comparing the same product from different providers to highlight areas of under and over compensation in benefits before making your decision.

At the end of the day, the FA needs to generate sufficient income from their client to run a sustainable practice. A transparent FA will let you know if they are able to reduce their fees and when they are not. Remember, the FA does not want to lose your business, but also needs to stay profitable. Don't feel that you cannot negotiate fees, but understand discounts have their limits. However, negotiating a reduction in commission may be more difficult if you are dealing with an Insurance Company Agent as they rely heavily on - dare I say - their ample commission paid by their employer (the insurance company whose products they are compelled to promote).

Commissions are negotiable but you also have to consider expertise in the mix. "You get what you pay for" is an old adage that applies to this scenario. Real estate is not all about sticking a sign in your yard and hoping it sells. Finding a buyer is the easy part, saving the sale from whatever Murphy's Law sends your way is the hard part.

FA's who have a book of loyal clients are those who have spent time to establish a high level of trust. When it comes to matters of a financial nature, trust is the pillow you put your head on to get a good night's rest. It is a two way street that benefits both FA and client over the very long term.

You are in a fiduciary relationship when you sign with a real estate broker and that means that the party entrusted with taking care of the other party acts honestly, in good faith and in the best interests of the other party. Ethical brokers do not take advantage of their clients and will always put your interests ahead of their own.

A very useful guide. I come from the insurance broking world (33 years in corporate broking) but now work directly with clients to help them ask more informed questions, build rapport, see the pitfalls early and generally get a better outcome from their broker relationships. The article demonstrates that an experienced consultant working with your business (in my case, in insurance broking) could deliver significant benefits. In my experience, since January 2022, it most certainly does …… ask my clients!