For
Buyers and Sellers:
Entering
Into A Relationship with A Realtor
Your success in
selling your home or finding the right home depends greatly on how well
you understand your relationship with your Realtor.
Essentially
you hire the Realtor to be your agent. For years, Realtors have
listed properties for sale using a listing agreement. The Realtor
charges a commission for services. That has been fairly well
understood by the public.
What
is not well understood is that as of January 2000, Realtors in Ontario
are required to formalize the agency relationship with their clients in a contract before an offer to purchase is presented. There
is usually no fee for this service as as the Realtor is compensated out of
the proceeds of the sale.
You
may shop around to find the Realtor with whom you are comfortable and
trust. You don't have to use the Realtor who has the listing you
find interesting or 'Uncle Harry's neighbour.' Choosing a Realtor
should be a matter of informed choice and an interview is not out of
line. Once you select the Realtor you are committed only after you
sign a buyer’s agreement (see for further
information and a sample agreement),
or a listing agreement.
About
the Buyer's Agreement
In
the past we often provided information and services to buyers without
setting up a formal relationship. The exact nature of the
relationship was sometimes ambiguous. This often meant that Realtors
could not trust buyers to actually use them to buy a house after sometimes
months of showing houses. Buyers could not trust Realtors to fully
be committed to their interests.
This
new formalized relationship protects everyone and builds trust. From
a buyer’s point of view, the Realtor’s role is clearly defined in the
buyer’s favour. The buyer has confidence that in the purchase
negotiation the Realtor will be looking out for the interest of the buyer.
From
our point of view as the Realtor, we now have a stronger sense of working
for buyers who are loyal to us. We now have clients who respect the
time and energy we put into educating buyers and finding the right home.
It also makes the relationship more businesslike as clients consciously
choose professional help.
Getting
Started
So
the first step is doing your research on possible choices for a
Realtor. The second step is interviewing the candidates by
appointment. Finally, you should enter into a formal agreement,
either a listing agreement or a buyer's agreement. We would like an
opportunity to be considered your Realtor. We promise our best
effort in ensuring your needs are met. We think we are good at what
we do and would be very pleased to help you with your search.
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