Orillia homes for sale - don't miss your dream home!
Why use a Buyers Agent when looking for a new home?
Here's how I can help you now. Because I look at over 50 homes per week and pull from the
computer every day every home that comes on the market in our area, I know you won't find
anyone that will work harder and more professionally for you than I will. It is important
that you know about all the right homes, isn't it?
Do you have a signed exclusive agreement with another agent?
NO.
Then let me share with you the benefits of having an exclusive relationship.
The traditional agency relationship requires that all agents have fiduciary relationship with the seller.
By that I mean it's their job to protect the interests of the seller, not you.
By entering into a buyer agency agreement with me today, you ensure that I will always be working in your best interest,
not the seller's.
Below is a chart showing what service you can expect as either a "customer" or a "client" (buyer agency). To view the "Working with a Realtor" brochure. Please click here. You will need the free adobe acrobat viewer to view the document.
|
CUSTOMERS VS CLIENTS (Working under buyer agency makes you a CLIENT when working with a realtor) |
||
|
SERVICE |
CUSTOMER |
CLIENT |
| a. Arrange property showings | Yes | Yes |
| b. Assist with financing | Yes | Yes |
| c. Provide accurate information | Yes | Yes |
| d. Explain forms and agreements | Yes | Yes |
| e. Give advice and counsel | No | Yes |
| f. Keep bargaining and financial position confidential | No | Yes |
| g. Negotiate best price and terms | No | Yes |
| h. Point out reasons not to buy | No | Yes |
| i. Disclose all info. that improves bargaining position | No | Yes |
| j. Prepare offer favorable to buyer | No | Yes |
| k. Show listed and unlisted properties | No | Yes |
YOUR CHOICES WHEN WORKING WITH A
REALATOR:
You may choose to work in a "Buyer Agency" relationship (A client -
described
below) or a "Sellers Agency" relationship (Customer - described below) when
working with a Realtor. When working in a Buyer Agency relationship (which
will be documented in a separate agency representation agreement as required by
the Real Estate Council of Ontario), You understand the agent also
represents sellers and may be required to act as a dual agent. By
choosing to work in a "Sellers Agency" you understand that the agent
is not representing your interests but will act in a fair, ethical and
professional manner.
WORKING WITH A REALTOR - The Agency Relationship
In Real Estate, there are different possible forms of Agency Relationship:
1.
Seller’s Agent
When a Real Estate company is a “Seller’s Agent”, it must do what is best
for the Seller of the property.
A written contract, called a Listing Agreement, establishes Seller Agency. It also explains services the company will provide, establishes a fee arrangement for the REALTOR’s services and specifies what obligations a Seller may have.
A Seller’s Agent must tell the Seller anything known about the Buyer. For instance, if a Seller’s Agent knows a Buyer is willing to offer more for a property, that information must be shared with the Seller.
Confidences a Seller shares with a Seller’s Agent must be kept confidential from potential Buyers and others.
Although confidential information about the Seller cannot be discussed, a Buyer working with a Seller’s Agent can expect fair and honest service from the Seller’s Agent and disclosure of pertinent information about the property.
2.
Buyer’s Agent
A Real Estate company acting as a “Buyer’s Agent” must do what is best for
the Buyer.
A written contact, called a Buyer Agency Agreement, establishes Buyer Agency. It also explains the services the company will provide, establishes a fee arrangement for the REALTOR’s services and specifies what obligations a Buyer may have.
Typically, Buyers will be obligated to work exclusively with that company for a period of time.
Confidences a Buyer shares with the Buyer’s Agent must be kept confidential.
Although, confidential information about the Buyer cannot be disclosed, a Seller working with a Buyer’s Agent can expect to be treated fairly and honestly.
An A.B.R. is a designation only given to those that have completed the necessary educational training required to be awarded the A.B.R. designation.
3.
Dual Agent
Occasionally a Real Estate company will be the Agent for both the Buyer and the
Seller. The Buyer and Seller must consent to this arrangement in their listing
and Buyer Agency agreements. Under this “Dual Agency” arrangement, the
company must do what is best for both the Buyer and the Seller.
Since the companies loyalty is divided between the Buyer and the Seller who have conflicting interests, it is absolutely essential that a Dual Agency relationship be established in written agency agreement. This agreement specifically describes the rights and duties of everyone involved and any limitations to those rights and duties.
Who’s working
for you?
It is important that you understand who the REALTOR is working for. For example,
both the Seller and the Buyer may have their own Agent which means they each
have a REALTOR who is working for them.
Or, some Buyer’s choose to contact the Seller’s Agent directly. Under this arrangement the REALTOR is working for the Seller, and must do what is best for the Seller, but may provide many valuable services to the Buyer.
A REALTOR working with a Buyer may even be a “Sub-Agent” of the Seller. Under Sub-Agency, both the Listing Agent and the Co-operating Agent must do what is best for the Seller even though the Sub-Agent may provide many valuable services to the Buyer.
If the Seller and the Buyer have the same Agent, this is Dual Agency and the REALTOR is working for both the Seller and the Buyer.
Two other important points in a buyers agent contract:
The first and most common way is where the commission, or brokerage fee, is payable from the listing Broker (the Seller's Agent) to the co-operating Broker (the Buyer's Agent) in the normal fashion for an MLS transaction, stipulating that the co-operating Broker still works for the Buyer, not the listing Broker or Seller. Almost all transactions will work this way. Some won't, so the clause goes on to set out exactly how much commission the buyer's agent is entitled to (which is usually expressed as a percentage of the sale price) and that the buyer agrees to make up any deficiency between this amount and what the broker actually receives.
This means that if, the buyer submits an offer either privately or through another agent, so the buyers agent doesn't get paid at all from the transaction, the buyer is still liable to pay the fee set out here to the buyers agent. This ensures that loyalty works both ways. It is the same for a seller, who is bound to work only through the listing agent during the term of the listing.
Alternately, the buyer and the agent could use this clause to agree on a set fee. If the money paid from the transaction was less, the buyer would make up the difference but, if it was more, the agent would give the excess to the buyer. This way, the agent has no financial stake in how much the buyer pays for a property.
The Holdover Period, set out in this section is also in a standard listing agreement. It means the buyer and seller, who have been introduced to each other during the term of either one of their respective agreements, cannot just wait until a day or so after their agreements expires then make a deal together privately, cutting their agents out of the picture. The usual holdover period in a listing agreement is 30 to 60 days. Spelling it out here makes sure the buyer is aware of it too. Of course, if the buyer or seller were to enter into an agreement with a different agent, the holdover period would not apply.