Real Estate Buying Agent

Click Here Are you a Real Estate Agent in Ontario? Park your license here and save your money.  Whatever your reason to hang or warehouse your license is, part-time, found another job/career, maternity leave, retiring, this is your opportunity to cut down your operating expenses in a huge way!

What is a real estate buying agent?  Growing numbers of sellers and buyers are questioning whether their Realtor acts on behalf of the seller, buyer or both.  In a litigation situation you can be sure that the question of who represented who will come up.  These days it pays to be absolutely clear on this question. 

A buying agent is just that, an agent who works on behalf of the buyer and may also be compensated directly from the buyer rather than the seller.One of the most important reason why anyone would use a real estate buying agent is to receive the fiduciary duties without question.  To be fully represented by the agents knowledge, skill, trust, accountability and honesty. 

The buying agent will fully disclose this representation for the buyer to the seller and the sellers agent.  The buying Realtor only owes service to the seller but when it comes down to the bargaining, make no mistake about it, the buyers real estate agent will roll up his/her sleeves and negotiate for the Buyer only especially when it is the buyer who signs the paycheck.A real estate buying agent contract is much like the listing agreement.  To be extremely brief with its contents, here are the main areas of concern:Buyers name and addressproperty information such as type, price range, area etc.timeline of the agreementholdover clause and time limitBrokerage name and addressbuyers signatureRealtor signature representing the brokeragewitnessesall dated including the date by the signaturesContracts differ from state to state and province to province so inquire at your specific location.Listing commissions, 20 years ago were generally 6% of the sold price of the properties with 10% being an acceptable charge for selling businesses. 

Today, everything varies with commissions ranging from 3.5% to 7% depending on the situation.  A real estate buying agent may charge a flat fee or he may charge a commission based on the sale price of your purchase.  Instead of being a buyers agent he can easily earn about 2.5% of the sale price so it may be interesting if he would go a lot lower.  Remember when using an agent for your purchase, he or she will be looking for, driving to and then presenting and negotiating your offer.  If you get a bargain fee rate from a buyers agent, Its possible they may be hard pressed for money.

About which real estate buying agent your should use….here is the short answer for that:  Contract an agent that you feel will respect your wants and needs and will keep an honest record of their service to you proving that they are doing their very best.  And, make sure your instincts tell you that he or she will be an extension of you working diligently in your best interests while at the bargaining table with the listing agent and the seller.In summary real estate buying agent that actually gets paid by the buyer is used more often the USA than in Canada.  Here is some good news and it may apply to you where you reside.  If you are a buyer and you want to hire your own representation, you don’t have to look at it as an out of pocket expense to you and your family.  Your agent will be the first to tell you that the bottom line will be about the same.  You see, if you pay for your agent yourself, you may be able to get the total sale price agreed to, reduced by the same amount. 

The listing agent will most likely alter his commission to the seller by charging 50% less since his Brokerage will not have a co-operating Broker to pay.  That means a savings to the seller and a reduction of the same savings off the purchase price to the buyer.  So if all of this works out about even why do it?  It all comes down to who you want to be represented by..good luck.

 

Learn more about real estate agent commission here.

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