What is a Buyer's Agent?
Why is it important for home buyers to use a dedicated "Buyer's Agent" when purchasing a home?
Most likely, unless you've bought real estate south of the border, "Buyer's Agency" is a new concept for you. Buyer's Agency is common in the US, but is relatively new in Canada.
Think of your Buyer's Agent as your own personal shopper & negotiator for real estate, who can take you to virtually every "store" in the area to find you just the right place — and when you find it, Will negotiate hard on your behalf to get it at the best price and terms for you. Best of all, my services don't cost you a penny extra (except in a very unique instance, see How I Get Paid, below).
Below are some answers to questions typical questions people often have about Buyer's Agency
1) Are you a "regular" real estate agent.
Yes. I am a licensed Real Estate agent in the province of Ontario, Canada. As a Realtor, I have full agent access to the MLS which means I can show and sell every property listed by other Realtors in Ontario.
2) How do I get paid?
In most cases, I'm paid a portion of the sales commission that is paid to the listing Realtor. This forms part of the fees paid by the seller of the property
3) Is there a conflict of interest if I'm paid a straight percentage of the sales price?
No. Remember as a Buyer's Agent my legal and ethical responsibility is with you NOT THE SELLER. At first glance, however it may appear that if I'm paid a percentage of the sales price, that would motivate me to get you to pay the highest price possible for the house. But first, consider the money involved. A 2.5% commission on $10,000 (the difference between, say a $670,000 sales price and a $680,000 sales price) is $250, which, in the big picture, is very little. In the long run, I'm going to make a lot more than that extra $250 if you're a happy client that refers other buyers to me.
4) What are the benefits of working with a Buyer's Agent versus a traditional seller's agent?
The obvious, of course, is that I represent, you, the Buyer, and not the Seller. But there are a number of other advantages.
- No Property Bias. While listing agents certainly can show you anything that is Multiple Listed by other agents, there is a financial incentive to them to show you their own listings first. If they sell you one of their own listings, they earn a bigger commission.
- Wider Geographic Scope. Most listing agents focus on a limited geographic area. They generally know the properties for sale in their area well, but not properties across the entire GTA.
- Unbiased Opinion of Properties. Listing agents are prohibited, by their fiduciary responsibilities to the seller, from telling you that they think their listing is overpriced, for example. I will. I will provide you with area pricing data, historical sales data and my professional opinions about all aspects of a property, and not only price! If I don't think a property is right for you, I'll definitely tell you.
- Expert Price Guidance. I spend considerable time helping you shape an offer — reviewing comparisons, estimating likely appraisal value and projecting future marketability with minor repairs or updating. When a seller's asking price is way above what I think a property is worth, I often prepare an extensive valuation analysis to accompany your offer.
|
Working Together |
|
If you've read over "What is Buyer Agency?", you should have a pretty good grasp of the concept. Now, your big question probably is "How do we work together?"
I work with clients on both an exclusive and non-exclusive basis. There are significant benefits to you to an exclusive relationship, and most clients choose to work with me that way. However, some clients prefer a more casual relationship and are willing to forgo the benefits of Exclusive Buyer Agency. Generally, if you're serious and motivated about finding a house in the Toronto area, exclusive buyer agency works best. However, if you're not quite sure whether Toronto area is right for you (and you're looking in a number of different areas in the GTA) or are a little undecided about a second home, a non-exclusive relationship may be your best choice. Some clients start out on a non-exclusive basis and then switch over to Exclusive Buyer Agency. Here are the pros and cons of each relationship: Exclusive Buyer Agency Exclusive Buyer Agency is a mutual commitment to each other, with a written agreement between us outlining our mutual expectations and responsibilities. Essentially, you make a commitment to work with me and in exchange, I agree to work my &$^$% off to find you a house. My Exclusive Buyer Agency clients are always my #1 priority. Think of it as Mileage Plus Premier, AAA Advantage Platinum and private banking all rolled up in one. The Exclusive Buyer Agency provides you with: Priority Notification of New Listings Access to "For Sale By Owner" Properties Priority Appointments Non-Exclusive Buyer Agency Under a non-exclusive arrangement, I still act as your representative, with my fiduciary responsibility to you, the buyer. But there is no written agreement between us, and you are technically free to work with other agents, as well (although most of my clients don't actually do that. They're pretty happy with "one stop shopping.") Think of it like dating, rather than marriage. Starting the Process - Either Exclusive or Non-Exclusive You'd never get married before dating. In the same way, I never enter into an exclusive relationship with a client until we've been out together once or twice. That's our time to get to know each other and determine whether there's a fit between us. Drop me an email (leon@schaumer.ca) or give me a call at my cell 416-931-1906. If you send an email, its helpful if you include any listings you've found on the internet that have caught your fancy, or houses you may have already seen. I generally like to talk on the phone for 15 or 20 minutes to get a good sense of what you're looking for. I'll email you some listings that I think might be appealing, and then we'll talk or email back and forth a few times about what you like and don't like. At that point, we'll make an appointment for you to come up and see some houses or drive through different areas that might be attractive to you. While we are looking at houses, we're also checking each other out — is there a fit between us? It may take a second trip tfor both of us to decide if there's a basis for entering into an Exclusive Buyer Agency relationship. If you decide to retain me as your Exclusive Buyer Agency, there is no upfront fee or retainer. I'm paid at closing in almost all cases by a portion of the commission paid by the seller. ***The agreement is typically for 6 months, but can be canelled by you at any time if you don't feel I'm doing a good job for you. |