When selling a home, people know that they will enter into a contract with the brokerage that will list their home, this is common and it’s what is expected. There is a similar contract that you can sign when you are buying a home called a buyer representation agreement. If you are planning to buy a home it is important that you understand this contract and how buyer agency works.
The Real Estate Council of Ontario (RECO) is an agency that was formed to protect consumers and to help regulate the real estate industry. RECO has introduced regulations mandating that Realtors ask their clients to sign a written buyer representation agreement at the earliest possible time in the relationship.
There is a document called “Working with a Realtor” and your agent should use it to explain how agency works so that you can understand how a Realtor can represent you. A buyer agency agreement states that a Realtor must do what is in the best interest of their client. As a buyer wouldn’t you want to know that the brokerage is working to give you the very best service possible?
When choosing representation, home buyers have the option to sign either a Buyer Representation Agreement or a Buyer Customer Service Agreement.
The Buyer Representation Agreement forms an agency relationship and is for a designated period of time. The agreement confirms the Realtor’s commitment to make his or her best efforts for the buyer. The designated time can be a mutually agreed upon time, whatever works for you and the Realtor. You can choose a short amount of time to begin so that you can decide if you are able to work together. If things are going well you can lengthen the contract anytime.
Everyone gets a little nervous when signing a contract, it is just human nature. Your Realtor should take the time to explain the process and make sure that you understand what you are signing.
Buying a home involves making a lot of decisions and it can be quite daunting. Having a Realtor working on your behalf to help you be an informed consumer can make the difference in easing some of the anxiety that comes with searching for and buying a home. Choosing an agent to work on your behalf can also give you an advantage during a sellers market when homes are being sold as soon as they are listed. Your agent knows what you are looking for and can give you advanced notice of homes that match your criteria so that you don't miss out on the home of your dreams.
An agent can do a lot of the "leg work" for you as we preview new listings each week. Why do all of that work yourself? We also have an understanding of the inventory that is available and sometimes have advanced notice of potential listings long before they hit the market.
If you have any questions about Buyer Agency please call me anytime at 519-336-3948. (office) or email julie@ExitSarnia.com
Choosing the Right Realtor does make a difference make your Exit With Julie!