Introduction

Should I hire a Realtor?

Selecting a Realtor

Buyer Agency Agreement

Buyer Agency Agreement

Buy the Right House
>Trends
>New vs. Resale

Hiring a Lawyer
>New Homes
>Resale
>how to hire

Final Thoughts

   Problem: how do I find a realtor?

Solution:

  • Ask your Lender/Financial Planner/ Lawyer / friends for a referral to a Realtor
  • Check out the Internet - see if a lot of listings for homes you are interested in feature a particular Realtor or Real Estate Company. If they do, consider interviewing that Realtor or someone from that company. They may specialize in the type of property you are looking for.
  • You may run into a Realtor at an "Open House" - this may be a good way to find someone provided they pass the "test" (see next question). Many Realtor use "Open Houses" as a way to find new clients.

Problem: what should I look for in a realtor?

Solution:

  • Before you commit to work with any one Realtor - ask for references and check them out.
  • Ask the Realtor if they specialize in the area you have in mind or the type of property you seek.
  • Ask the Realtor how much time you can expect them to spend with you.
  • BEWARE of some "superstar" agents - you may get fluffed off to someone with little experience. If there are others on the Realtors "team" find out whom you will deal with and what their qualifications are.
  • The Realtor should be your guide through the Home Buying Process -its essential to work with someone you feel comfortable with and can relate to.

Problem: Should I hire a "discount" Broker?

Solution:

This is a true situation of "Buyer Beware." The "going" rate for commission (in Ontario) is between 5% - 6% of the sale price. That is "split" typically between the agent representing the seller and the agent representing the buyer. Do not be fooled by ads offering a lower commission rate. The ads typically only refer to the commission that the seller agent will charge - not the total commission to be paid on the deal! In other words, the selling agent may agree to reduce their commission to 2 ½ % -but they still have to contend with the agent who brings the buyer. That agent will also want to get paid. Further, if you are advertising that you are only willing to pay less than the going rate to the agent who brings you the buyer, you may be removing some of the incentive for the agent to work hard on your deal.

As with many things in life, if something sounds too good to be true, it may be just that! On that note -it is perfectly reasonable for a consumer to ask their agent whether they are full time or part time agents. A prudent consumer would want to know whether their agent has a 9 to 5 job doing something else.

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