I’m going to talk about buyer agency today, what it is and why it is so important. You know even a lot of agents look at it from a loyalty point of view. This relationship has nothing to do with loyalty. There are two major functions of a buyer’s agreement.
The first and most important is creating an agency relationship between the agent and the buyer. This is a relationship of agency built on the fiduciary duties of disclosure, competence, confidentiality, obedience, loyalty and accountability.
The second role of this agreement is you’re giving permission for my brokerage to invoice the brokerage of the seller or lawyer of the private seller, so I get paid. So, you need to ask yourself, “if I’m not smart enough to make sure I get paid when I go to work for you, do you really want me negotiating for your biggest purchase?" Probably not.
But let’s get back to the fiduciary duties because that is where it really comes in to play. Even before we go and look at any homes I explain the whole home buying process including this agency relationship. It’s the largest transaction of your life most likely and you need to feel comfortable and have total trust in the agent you choose to work with. Also, I want to make sure I’m compatible with you. The first home we look at is our “test drive” to see if we both feel the relationship is compatible. It is important to note that on this viewing we are not in an agency relationship and I will not give advice.
I’m not going to tell you the whole story, but I’m selling a home that was purchased by first time homebuyers. When they purchased they chose to work with the listing agent, not understanding the importance of agency relationship.
They are now obligated to spend $12,000 plus for a new septic system because they didn’t have their own agent looking out for their best interests. Especially from the advice point of view because they didn’t receive any advice nor was the agent allowed to offer any. So, not having your own buyer’s agent can prove to be very costly down the road when selling.
The Seller’s agent is working for the Seller! At times a seller’s agent may offer to treat both seller and buyer fairly. You don’t want to be treated fairly!
YOU WANT AN AGENT WORKING FOR YOU AND ONLY YOU!
If you’d like any more information on Buyer Agency please feel free to reach out to us at www.brendak.ca