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Real Estate Buyer Agents...

What is the benefit of using a buyer’s agent when you purchase a home? Isn’t it cheaper just to use one agent so you pay less commission?

- James, Vaughan

 

Hi James,

The benefit of using your own Buyer’s Agent when purchasing a home is plentiful and should really be pursued if you want your best interest to be protected in the transaction. By law, if you get your own Buyer’s Agent they are obligated to adhere to guidelines as outlined in agency relationship:

  • A real estate brokerage representing a buyer must do what is best for the buyer.
  • A written contract, called a buyer representation agreement explains the services the brokerage will provide, establishes a fee arrangement for the REALTOR's services and specifies what obligations the buyer may have.
  • Typically, buyers will be obligated to work exclusively with that brokerage for a period of time.
  • Confidences the 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

The opposite is true, of course, for the seller's agent... so essentially you have no protection if you work directly with the listing agent except to be treated honsetly and fairly.  In this instance, you can risk overpaying for a property, not having clauses in the agreement to protect you, not getting your best interests negotiated for price and dates, etc.  In Ontairo, it's typically the seller who pays the entire cost of the commission in a sale, so the Buyer Agent gets compensated by the Listing Brokerage... essentially, it costs you nothing to get representation, so why wouldn't you?

Note: that was a trick question... there is no reason why you wouldn't, so if you're thinking of buying, you know how to reach me ;)

Posted on Thursday, November 9, 2006 at 12:55PM by Registered CommenterJoanna in | CommentsPost a Comment

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