REALTOR and AGENCY

At the bottom of this post I also wrote some do’s and don’ts for you to employ when working with a REALTOR

What is Buyer Agency

Buyer agency is defined as a principal-agent relationship in which the REALTOR® is the agent for a buyer, with fiduciary responsibilities to the buyer. What does that mean? It means that the Buyer’s Agent is representing the Buyer’s interests solely and that all of their loyalties are to the buyer.  In addition, there is a “wall of agency” there which blocks all personal motivations or interests.  The Buyer can trust the Buyer’s Agent as their confident.

Buyer Agency is a relatively new concept for the real estate world. In the past, agents were Seller’s Agents, working for the person who signed a contract employing them to sell their home. This made for a “Buyer Beware” situation because there really was no proper representation.  I think that this is where the lack of trust began.  Over time, that arrangement resulted in too many misunderstandings. For example, A buyer working with a Seller’s Agent often regarded that person as his agent, and felt free to make confidential statements, not understanding they would be passed on to the seller.

*The Brochure that has been put together from the BC Real Estate Association entitled “Working with a REALTOR®” will be presented to you for signatures.  This brochure will explain in detail what is summarized above.  Ask your REALTOR® for a copy, if you haven’t already received a copy.

I am excited to work with you and I look forward to working very hard for you to help you find the perfect home, investment, scenario that is best for your specific goals.  I know that you respect the fact that I am a professional but here are a few guidelines in order to keep our relationship positive and moving in a more efficient direction avoiding any potential or mistaken conflicts….

Here are a few suggestions for you:

1. Understand Agents Work on Commission

”This is how they feed their family”

• Very few real estate agents work on salary.  This is how they support their family.  They must complete transactions in order to make a living and pay all of their business expenses.
• Real estate agents are paid compensation in the form of a commission. If a REALTOR® does not close a transaction, they do not get paid.
• Agents are not public servants and are not meant to work for free. Do not ask an agent to work for you if you intend to cut the agent out of your deal. That is simply bad form and you are affecting someone else’s ability to support their family

2. Keep Appointments & Be On Time

• Be respectful, use common courtesy and don’t expect an agent to drop what she is doing to run out to show you a home. You are probably not that agent’s only prospect / client. They have to work on appointments so that they can plan their day and make sure that they respect the time allotted to each client.
• Do not make an appointment with an agent and then forget to show up.
• If you are going to be late, call and let your agent know when you expect to arrive.
• Also if you are meeting to go and look at some homes, please understand that the REALTOR® has made appointments and created a specifically planned route to look at the homes and if you are more than 15 minutes late it really causes issues with the timing that the REALTOR® has created.

3. Choose A Real Estate Agent

• Decide whether you want to work without representation: dealing directly with listing agents, or if you want to commit to a Buyer’s Agent.  Either way make it clearly known to the REALTOR®.
• Look for an agent with whom you are comfortable to work with.  Not the person who has a listing that you want necessarily.
• If you are interviewing agents, let each agent know you are in the interview stage.
• Never, never, never interview two different agents from the same company, it is just not a good idea.

4. Do Not Call the Listing Agent after you have committed to work With a Buyer’s Agent

• Listing agents work for the seller, not the buyer. If you hire the listing agent to represent you, that agent will now be working under dual agency potentially if you choose to buy that home.
• If listing agents show you the property, the listing agent will expect to represent you and sometimes will limit the amount of commission payable to your agent.
• Listing agents do not want to do the buying agent’s job unless they are in a dual agency situation. Let your buyer’s agent do their job.
• If you do, let them know that you have a REALTOR® but just wanted a couple of questions answered and most agents will be happy to answer your questions.

5. Practice Open House Protocol

• Hand your agent’s business card to the agent hosting the open house. Sometimes this agent will be the listing agent, but often it is an agent also looking for unrepresented buyers. Announcing you are represented protects you.
• Do not ask the open house host questions about the seller or the seller’s motivation. Let your agent ask those questions for you.

6. Sign a Buyer’s Broker Agreement with a Buying Agent

• Expect to sign an Exclusive Buyer’s Agency Agreement.  It creates a relationship between you and the agent, and explains the agent’s duties to you and vice versa.
• If you’re not ready to sign an Agreement then understand that you will not be a top priority to that REALTOR®.  If he has agreements with 3 other Buyer’s at the time, then they deserve his full attention.
• Ask your agent if she will release you from the contract if you become dissatisfied. If she refuses, hire somebody else.

7. Make Your Expectations Known

• If you expect your agent to pick you up at your front door and drive you home after showing homes, tell her. Many will provide that service. If not, they will ask you to meet at the office.
• Let your agent know how you want her to communicate with you and how often. Do you want phone calls, e-mails, text messages, IM’s or all of the above?
• When the REALTOR® sends you information, acknowledge it.  Sometimes technology lets us down.  If the REALTOR® that you always acknowledge receipt of information then they know when information has not reached you.
• Set realistic goals and a time frame to find your home. Ask your agent how you can help by supplying feedback.
• If you are displeased, say so.  If you are frustrated, say so.  If you are not happy or feel that the REALTOR® is not working for you properly then say so and let them know.  Let the Broker know as well.  Be specific so that proper corrective action can be taken.

8. Do Not Sign Forms You Do Not Fully Understand

• Do not feel silly for asking your agent to explain a form to you. It is their job. Many forms are second nature to agents but not to you, so ask for explanations until you are satisfied you understand.
• Realize agents are not lawyers and cannot interpret law.
• Realize that agents are not accountants and cannot give you accounting advice either.

9. Be Ready To Buy

• If you aren’t ready to buy, you don’t need a real estate agent. You can go to open houses by yourself; call listing agents for showings — but be honest, say you are “only shopping”; look at homes online; but don’t waste an agent’s time if you aren’t ready to act.
• If possible, hire a babysitter to care for children who are too young to stay out all morning or afternoon touring homes.
• Before looking at homes with your REALTOR® have a conversation with them.  Find out who can help you.  Spend time with a mortgage professional to understand your financing options and have confidence in the fact that you are capable of buying a home.
• Keep in mind that your REALTOR® is also your consultant and maybe you need to consult first before getting into their car.  Most REALTORs® are happy to spend time with you getting you the stage where you can be ready to buy.  Perhaps there are some things that you need to do to get your “ducks in a row”…they can help with that.  If they do spend time with you and help you as a consultant, respect that and make sure you call them after you have got yourself to the point of buying.

Sutton Group – Showplace Realty Ltd.