Questions on Buyer's Agency You Should Be Aware Of

Is there any cost?

What if I want to purchase a for sale by owner?
A similar process would apply. In the offer to purchase, the agent simply tells the seller that instead of having to pay a full commission to a listing Real Estate firm, the buyer is requesting that his/her half of the Real Estate commission be paid from the proceeds of the transaction. With this method both the buyer and the seller can save on commission by dealing directly with a buyer agent.

If the agent usually works on a commission, what is the agents incentive to save me money when negotiating on my behalf?
One simple answer, "Repeat Business". The better the job that agents do for home buyers the more the word gets out. There simply would be no growth in one's Real Estate business or career if they didn't do a great job advising home buyers. In addition, it would be a violation of a written contract between the buyer and the agent if the agent knowingly did an injustice to the buyer.

How does the buyer agent find out about all the homes that might meet my needs?
The same methods apply here. Access to the M.L.S. service through the North Bay Real Estate Board (where most, if not all, agents list their homes for sale) provides for most of the data. Buyer agents also stay on top of for sale by owner and new construction properties as well.

When working with a Real Estate agent am I a client or a customer?
A buyer who is a customer of a Real Estate agent is working with an agent whose loyalty lies with the seller. You must be a client of the agent in order to get the best kind of representation. Be sure it is in writing from your agent. Do not assume. Many home buyers have always thought the agent working with them was working for them.

I heard that buyer agents want me to sign a contract that would tie me up to only work with them. What if I wanted to work with other agents?
The contract between you and a buyer agent is very important to be aware of. Buyer agents offer the contract as protection for you the buyer as well as the Agent. It allows you to have recourse against a buyer agent who does not perform to your best interests. It also ensures that you will work with that agent for the duration of the contract. Contracts are written for x number of days. The decision is yours. Keep the contract short at first. After such time, you will have been able to decide whether or not the agent you are working with will live up to your standards. At that time you have the option of extending the contract or, you may decide to choose to work with another agent.

An agent will go to work for you spending many hours of research, scouring the market place continuously looking for the homes that best suits your needs, financially as well as physically. A buyer agents need to know that you are committed to them during the time they are committed to work for you.

What can I expect from a buyer agent?

NO PRESSURE: Buyer brokers are paid professional consultants. They never pressure their client to make a decision to purchase a particular property. Nonetheless, when appropriate, and still without exerting undue pressure, the broker must advise the buyer-client of the ramifications of such acts as delaying decisions and making inappropriate offers.

REASONABLE CARE AND DILIGENCE: A buyer broker is responsible for researching any property of you choice and its surroundings to discover all material information prior to a buyer-client making an offer to purchase.

NEGOTIATOR: The buyer broker has assumed the responsibility to make sure their buyer-clients never unknowingly over-pay for the home being purchased. It is the buyer brokers job to do a market analysis on every home the buyer-client intends to make an offer on. If the buyer broker knows of any information regarding the sellers willingness to accept less than the listed price, it is their fiduciary responsibility to inform the buyer-client of such facts.

LOYALTY: A buyer broker must always think of the buyer-client before him or herself, even when it may not be in the buyer brokers best interest. A buyer broker must always be loyal, to the buyer, never doing anything that would intentionally jeopardize the buyer-client's best interests.

OBEDIENCE: A buyer broker owes absolute obedience to the buyer client provided that the buyer broker is not asked to violate any Provincial or Federal statutes or regulations. The buyer broker has the job to search out the entire area to the best of his/her ability including for sale by owner and new construction for the homes that best meet their clients needs and not to waste time showing their clients homes that do not meet their criteria. Doing otherwise would be a breach of contract between the buyer broker and the client.

DISCLOSURE: A buyer broker must disclose any information he/she knows about the seller to the buyer-client. A buyer broker must disclose any pertinent facts about the property and the immediate area known to him/her or, which should be reasonably expected to be known as the representative of the buyer-client.

CONFIDENTIALITY: A buyer broker must keep all sensitive information concerning his/her client confidential, unless the client has given the buyer broker permission to disclose such information.

THE CONTRACT: The buyer broker is bound by contract to perform on behalf of the buyer. A buyer should always insist on having a contractual relationship with the buyer broker. This contract fully obligates and defines the legal responsibilities of the buyer broker. The buyer client now can have recourse against his/her Real Estate agent if in fact the agent has not done his/her job thoroughly.

In dealings with the seller, a buyer's agent should exercise reasonable skill and care in performance of the agent's duties, deal honestly, fairly and in good faith and disclose all facts known to the agent materially affecting the buyer's ability and/or willingness to perform a contract to acquire seller's property that are not consistent with the agent's fiduciary duties to the buyer. Beware of the Real Estate agent that takes listings and calls him/herself a buyers agent without properly advising you of the fact.