What is it?
Buyer agency is a written contract similar to a “listing contract” whereby a relationship is established between the purchaser and the real estate salesperson/consultant. The consultant agrees to search & find a particular property (ie. Residential home) for the purchaser by searching the marketplace, which may include: the MLS system, New Homes, Exclusive or Private Sales) within a given time period. In most cases, the consultant is paid by the MLS or Exclusive Listing agreement signed by the vendor (homeowner) and not by the “Buyer Agency” Agreement signed by the purchaser. Therefore, the agent’s services to the buyer are free. In return the purchaser agrees to work exclusively with the buyer agent and owes their loyalty to that agent. The agent does not receive a weekly salary from their employer and receives their commission only after closing day when the proceeds of the sale are disbursed by the lawyers.
When did Buyer Agency come into effect?
It came into effect Jan. 1/95. Prior to that time, most real estate agents represented the vendor (homeowner) and tried to get the best possible price for the owner. The purchaser didn’t have anyone representing their interests. The government felt this was unfair and instituted “Buyer Agency” to protect and assist the buyers.
What duties does the “Buyer Agent” owe the Buyer?
The “Buyer Agent” owes all his/her fiduciary duties to the buyer, such as: loyalty, confidentiality, full disclosure, accounting.
What if I hire a “Buyer Agent” and they don’t do the job I thought they would do to help me find a house?
I recommend you interview an agent or two and decide who you feel most comfortable with. Your “Buyer Agent” will be working very closely with you and you want to make sure your personalities blend, plus you want to know just how regular your agent will be contacting you about the properties on the market. Do they have a specific program in place to help you find a home…or will they call you when they remember?
If you have hired a buyer agent and you are not happy with their performance, you should contact them immediately to see what recourse you have. The two of you may agree to terminate the Buyer Agency Agreement which would permit you to hire another Buyer Agent OR you may be required to continue with that agent until the termination date of your Buyer Agency Agreement. Our team offers a One Day At A Time Guarantee. Please ask us for details.
I’m not thinking of buying a home for the next 3-12 months…when should I hire my “Buyer Agent?”
Now! ...before you go to your first “Open House.” We welcome buyers who are not in a hurry. We feel the more we can educate you about the market and the buying procedures, the easier the whole process will be for you. We have designed a FREE special computerized program for buyers just like you…so call us for further details at Office: 519-570-4447 Direct: 519-772-3759.
I don’t want a “Buyer Agent” to help me.
That’s fine too. Every “Open House” you go into, the agent or builder sitting there will be representing the owner and they will be trying to get the highest price for the owner! No one will be solely representing you or aggressively negotiating on your behalf. You are on your own!
What is “Dual Agency?”
If you hire a “Buyer Agent” to represent you they owe all their duties to you until you go into one of their own personal listings. An agent becomes a Dual Agent when they are both the listing agent (for the vendor), plus the buyer agent for you. That agent’s name will be on the sign or the listing contract. The “Dual Agent” has a responsibility to you, plus an equal responsibility to the owner.
Your “Dual Agent” can still show you the home; review the other sales in the neighborhood before you submit your offer; present your offer and not disclose to the vendor what your highest price will be. Similarly, when the owner asks the agent if “you will go up in price” the “Dual Agent” must ask the owner, “What he is prepared to sell the house at” and not disclose what you might be willing to pay. The offer will bounce back & forth until both the owner and the buyer agree or one of the parties decides to stop the negotiations.
We’re selling our home. How does “Buyer Agency” affect the sale of our home?
Prior to Jan. 1995, when a buyer wanted to put in an offer on someone’s home, it was more of an “emotional” response. They thought they knew the values of the homes they were looking at and simply picked a number that they felt the home was worth. Rarely did a real estate agent prepare a Market Evaluation for the buyer or print out all the sales on the street for the buyer to review.
Today, the buyers are much more educated & aware about the actual sale prices and amenities that other homes on your street have offered. Any “Buyer Agent” can pull up the recent sales on the street or in your area. A buyer can review the features of all the homes that have sold. If your home offers LESS features than other sold homes on the street, they will take this into consideration when they make their offer.
Pricing your home right, will make all the difference on how
quickly or slowly you receive an offer. Most buyers will not OVERPAY for a
Roy Cleeves, Broker & The
Hammer Team Roy Cleeves, Broker Phone: (519)570-4447 Information Hotline
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Roy Cleeves, Broker & The
Roy Cleeves, Broker