An insight into Buyer Agency

As a new immigrant from other parts of the world including Asia and the Middle East, we are accustomed to paying a real estate agent when buying a home or an apartment. In North America, however, this is not the case. A buyer agent usually gets paid from the seller.

Another thing to bear in mind while looking at a house for sale is that the seller’s agent always works for the best interest of the seller. Then who is working for a buyer? What is a Buyer Agency and what are its benefits?

What is Buyer Agency ?

Buyer Agency is a real estate brokerage representing the interests of the buyer. Buyer agency can be established by implication, as well as a written agreement/contract. Buyers seeking exclusive representation usually do so through an agency agreement. A representative of the buyer must use professional negotiation skills, seek appropriate properties that meet the buyer’s needs, describe the merits and defects of any selected property, keep information confidential concerning the buyer, and generally act in the buyer’s best interests. The hallmarks of this relationship are good faith, full disclosure, competence, obedience, and accounting. The buyer and the brokerage will enter into a signed buyer agency agreement that details their relationship. THE SELLER USUALLY PAYS ALL COMMISSION TO THE LISTING BROKERAGE WHO, IN TURN, FORWARDS THE APPROPRIATE PORTION TO THE BUYER'S BROKERAGE. Alternatively, the buyer’s brokerage can be paid directly by the buyer and, therefore, this amount does not form part of the sale proceeds. IN MOST OF THE TRANSACTIONS , THE COMMISSION TO THE BUYER'S BROKERAGE IS PAID VIA THE LISTING BROKERAGE FROM THE PROCEEDS OF SALE.

More reasons to use a Buyer Agent when buying a house:

Agents are experienced negotiators who will manage your offers and counter-offers.

An agent is familiar with the neighbourhood and can give you information on local real estate values, taxes, utility costs, services and amenities. YOUR AGENT WILL BE ABLE TO RUN A COMPARABLE MARKET ANALYSIS BASED ON MLS DATA and will be able to tell you the sold prices of exactly same condos/homes in the same building/neighbourhood in the past.

An agent is familiar with the entire home purchasing process and can advise you of your legal and financial options as well as recommend appraisal, home inspection and contracting services.

An agent can pinpoint homes that fit your needs and dismiss those that do not, saving you time.

An agent knows the potential problem areas in a home and can guide you away from "LEMONS".

So go and get a Buyer Agent. You will pay him 0 dollars.

And if you are thinking of hiring someone and do not have a buyer agency relationship signed yet then you should consider. For more information on first time buying visit

http://www.realestate-ontario.com/firsttimebuyer.htm" rel="nofollow">LINK


Amit Kalia Sales Rep
Royal Le Page Meadowtowne Realty
6555 Mississauga Rd
Mississauga ON L5N 1A6
Tel.No.: 905-821-3200
Fax No.: 905-821-8777
Email:
Website: http://www.realestate-ontario.com