As a buyer, there is no disadvantage to a having a Realtor represent you but there are PLENTY of benefits - and guess what? THERE IS NO COST TO YOU. The commission paid to the buyers agent is almost always paid by the seller to the sellers agent (through his/her real estate company) and then distributed to the buyers agent (through his/her real estate company.)
Whether or not you decide to have buyer representation, this commission has already been determined contractually and is still due to the seller’s agent/company. Most often, taking a buyers agent out of the equation will save neither the buyer or the seller any money, and it also results in under-representation (or a total lack of representation altogether) for the buyer.
YOUR OPTIONS FOR REPRESENTATION
Listing Agent only represents the best interests of the Seller
Agent owes honesty to both Buyer and Seller
Agent must give Buyer all information regarding physical material defects of the property of which the Agent has actual knowledge
BOTTOM LINE: The Buyer has no one representing their best interests on price, terms and conditions and no professional opinion on which to rely. Also, anything the Buyer says to reveal his/her confidential information or financial situation, the Agent is required to tell the Seller if it will better his/her position in the transaction.
Buyer Representation – when a Buyer elects to be represented by a Buyer's Agent
Agent owes fiduciary duties to and represents the best interests of the Buyer
Agent works to get the Buyer best price and terms on the home they choose to purchase
Agent owes honesty to both Buyer and Seller
Agent must share all material facts regarding the physical condition of the property and the transaction of which they have actual knowledge
BOTTOM LINE: A professional and fully licensed Realtor® works closely with the Buyer to find the best property, at the most acceptable price, terms and conditions for their client and represents the Buyer’s interests in every part of the transaction.
Multiple Representation – when an agent sells their own listing and represents buyer & seller
Agent/Broker owes BOTH parties to the transaction statutory duties. May not really give advice or opinion.
Objective: To get a mutually satisfactory agreement among parties.
Confidentiality due to all parties unless written permission to disclose information is given.
BOTTOM LINE: Multiple Representation requires informed written consent of buyer & seller.
MY DUTIES & OBLIGATIONS AS YOUR BUYER'S AGENT
I Have a thorough working knowledge of the real estate business and will continue to stay up to date and inform you of any changes in legislation
I Have solid knowledge of the real estate market and local neighbourhoods.
I will use my experience and proven negotiating techniques to get you the best price possible.
I will be accessible when you need me.
I will ensure that the entire process goes smoothly, minimizing any bumps along the way.
I will always work efficiently and effectively.
I will communicate with you throughout the process.
I will pay close attention to detail, be well organized and carefully follow through.
I will provide the best experiece possible for you and your family throughout the process and beyond.
I will be trustworthy and committed to working for your best interests only.
The National Association of REALTORS® has shown that when a Buyer’s Representative was used, the prospective Buyer found a home an average of one month faster and gained information & access to a minimum of eight more properties than those consumers who did not use a Buyer’s Representative.
I will make the commitment to bring all of these skills “to the table” on your behalf when you are my client.
BASIC DUTIES OWED TO YOU AS A CUSTOMER OR CLIENT
The basic duties owed to any buyer, whether they are a Customer or a Represented Client are as follows:
No statement or action can result in fraud or misrepresentation. All laws and regulations pertaining to the transaction must be obeyed, including the disclosure of material facts.
Agency Disclosure and Material Facts Disclosure
Disclosure of agency relationships, including an explanation of the difference between a customer and client relationship, must be made in a timely fashion so that customers can protect their own interests. (e.g. revealing any confidential information). Material facts about properties must also be disclosed.
FIDUCIARY DUTIES OWED TO YOU AS A CLIENT
In addition to the basic duties, a Client is also owed the following Fiduciary Duties:
The agent is prohibited from advancing any interests adverse to the principal's interest or conducting the principal's business in such a way as to benefit a customer, a subagent, the agent or any other party to the detriment of the principal's interest.
The agent is required to act, following and abiding all lawful instructions, subject to the principal's continuous control, but not exceeding the scope of the authority conferred by the principal. That is, do not make decisions for the principal.
Reasonable care and diligence
The agent is required to protect the principal from foreseeable risks of harm, recommending that the principal obtain expert advice or assistance when the principal's needs are outside the scope of the agent's expertise.
The agent is prohibited from communicating personal information about the principal that was given to or acquired by the agent within the scope of employment as an agent to the principal. Personal information must be kept confidential unless the client releases the agent, or subagent, from this duty. However, the material facts and defects of a property are NOT confidential.
The agent is required to disclose affirmatively all information concerning the transaction (and property) which might affect the decisions a principal makes, informing the principal what the agent knows.
The agent is required to report to the client promptly all money and property received and paid out, and upon request, to tender an account of these actions. This duty also requires the agent to safeguard money or property held on behalf of the client.