Buying and Selling Real Estate usually starts off with practical and logical considerations, such as “our family has outgrown this home and needs something more suitable”.
You start to imagine your dream home and you get excited!
Then you have to do a lot of work to prepare your home for sale and spend a lot of time looking for the right house within your budget, which can turn your excitement into frustration and stress.
When Selling your home, you of course want to get the most money possible for it.
When Buying a home, you want to pay the least amount necessary for the seller to agree to sell it to you.
Are both of these goals achievable? With the help of a knowledgeable, professional Realtor they can be!
This next bit is a little dry, but it’s important that you understand, before you buy or sell!
When you hire a Realtor to sell your property, you enter into a representation agreement with a Real Estate Brokerage called a Listing Agreement. The Listing Agent, working on behalf of the brokerage, has a fiduciary duty to act in the Seller’s best interest and keep all information discussed confidential. Their goal is to get the Seller the highest price and most favourable terms for the sale of their home.
Typical Duties of the Listing Agent:
-explain the home selling process, so the seller can make informed decisions
-assemble and accurately record all details related to the property
-market the property to prospective buyers
-coordinate showings of the property and obtain feedback after the showings
-field inquiries from buyer agents and members of the public
-negotiate a deal that is in the best interests of the seller
A Buyer searching for a home can benefit from having their own advocate to help guide their purchase. By entering into a Buyer Representation Agreement, a Buyer agrees to work exclusively with one Realtor, who understands what is important to them, acts in their best interest and keeps all information discussed between them confidential. The Buyer Agent’s goal is to help the Buyer obtain the desired property for the lowest price possible.
Typical Duties of the Buyer Agent:
-explain current market conditions and set realistic expectations about the purchase process
-establish key search criteria important to the buyer, along with their budget
-bring to the buyer’s attention properties that match their criteria
-research comparable sales, to establish realistic selling price for properties of interest
-schedule private showings and seek additional information from listing agents as needed
-draft offers and negotiate the best deal for the buyer
Both the Listing Agent and the Buyer Agent are paid out of the proceeds of the sale of the home, after the home closes and ownership is transferred to the new owner.
The amount of commission paid to each agent is arranged between the Seller and the Listing Agent, at the time the Listing Agreement is signed.
Post a comment