You’ll probably hear two different things about their real estate agent if you conduct an informal survey of recent homebuyers. “My agency was the finest!” or “My agent was dreadful!” are the most common responses. Those two responses demonstrate how critical it is to hire the appropriate real estate agent. A great real estate agent can help you realize your home dreams in addition to obtaining a mortgage. Obviously, a bad one will not.
The benefits and drawbacks of working with a real estate agent in Canada
For any phase of the house buying or selling process in Canada, you are not obligated to work with venta de casas en playa del carmen. That isn’t to say that going it alone is the greatest option. When you have a real estate agent representing you as a buyer, you will have better access to houses, obtain market information, particularly about the neighborhood, and have an expert on your side when negotiating a purchase and closing the sale.
Buying a house involves a lot of paperwork and legalese, and attempting to manage it without assistance may be intimidating and pricey. Furthermore, it is your agent’s responsibility to tell you of any critical information they receive concerning the property. If you aren’t working with an agency, you won’t get this.
However, if you end up with a real estate agent who isn’t a good match for you, it can feel like a major setback. This is a close friendship that is full of emotions and sensitivity. There are situations when buyers and their agents have a personality clash. Alternatively, an agent may try to persuade you to buy a home that isn’t a suitable fit for you. Some buyers believe their agent wasn’t a good negotiator or didn’t appear to be on their side during the process.
If you decide to work with an agent, make sure you pick one who is a good fit for you and consider signing a Buyer Representation Agreement (BRA) with them. We’ll go through that in further detail later.
How much does having a real estate agent cost?
When a real estate agent is involved in a transaction, they are compensated with a commission. The commission is determined by the seller’s agreement with their realtor, and the buyer’s agent receives a share of it. The % commission is agreed upon at the outset by the client and the agent.
In Canada, commissions typically range between 3% and 7% of the ultimate sale price. The purchasing and selling agents are responsible for a portion of this. This varies depending on where you live and what the agent agreed to when listing the home with the seller.
The cost of hiring a real estate agent is included in the sale price, even if you don’t have to pay anything up front. You can either factor it into the price of your new home or deduct it from the total when you sell your old one. Although it is legally possible to negotiate your agent’s commission during the purchase negotiation process, this is not normal practice.
Finally, if you are a buyer working without the assistance of an agent and find a home you want to buy, you can certainly try to negotiate a lesser offer. The seller’s agent will not split the commission with another agency, giving you advantage. You may gain in terms of a reduced sale price what you lose in terms of having your own agent.
The hunt for a fantastic real estate agent has begun.
You’re serious about property hunting. You might even get a mortgage preapproval. You’ll need to choose a real estate agent before you start looking at houses. Let’s begin with the many types of real estate agents, commonly known as realtors.
There are two types of real estate agents: residential and commercial. You want a residential specialist when you’re looking for a home. Don’t choose a company that offers both unless you’re from a small town with little options.
Next, you’ll want an agent who represents both buyers and sellers. If you’re in a very tiny or sparsely populated location, this may be different. Then there’s a chance you’ll just have one or two realtors, who will most likely represent both buyers and sellers.
A buyer’s agent is someone who works with people who are looking to buy a home. They are well-versed in what to look for in a home and how to negotiate in your favor. They also know the other agents in your area and how the real estate market is in your area.
Although it’s uncommon that you’ll come across an unlicensed individual advertising their services to homebuyers, it’s crucial to verify that your realtor is a licensed real estate agent in your area. The particular rules differ by province, but before becoming a licensed real estate agent, persons must pass a written exam in every province and territory in Canada. You can look up your agent’s license by province using the following link:
- Newfoundland and Labrador is a province in the Canadian province of Newfoundland and Lab
- New Brunswick is a province in Canada.
Should I use a friend’s recommendation for a real estate agent?
When it comes to finding an agent, personal referrals are quite valuable. If someone you know has raved about an agency with whom they’ve lately worked, jot down the name. However, you should seek out an agent who has received positive feedback from others.
Then you may look at their testimonials, Google reviews, and even what people are saying about them in chat rooms. Good realtors receive positive feedback. However, there are a few more questions to consider before making a decision.
It’s all about the setting.
This isn’t only about the store where you buy! This goes for your real estate agent as well. Most realtors specialize in a single city, and many specialize in a specific neighborhood within that city.
You want an agent that knows as much as possible about the location you wish to buy in. So, inquire as to what they know and where they’ve worked before! You can also seek advice from property purchasers in the areas where you want to live. Community chat rooms can be an excellent source of this information.
A local realtor will be aware of the current situation of the real estate market. They’ll know what’s selling and for how much, where the houses that suit your criteria are located, and they’ll often be aware of residences before they hit the market. The fabled pocket listing, of course.
For real estate agents, experience is crucial.
Look for a real estate agent who has helped buyers buy a home before. While having a license guarantees they have a solid knowledge base, there are many aspects of real estate transactions that can only be learned via experience.
An experienced agent is familiar with the areas in which they work, has successfully negotiated numerous times, and has a large network of contacts. Other agents and professionals who may be needed in the house-buying process are part of that network. Home inspectors, mortgage brokers, real estate lawyers, notaries, and contractors are examples of people who work in the real estate industry. They can often provide helpful advice on where to go for the best mortgage rates.
Governments and governing associations both require real estate agents to be licensed. You can also check with the organization that governs realtors in your province or territory to discover whether any complaints or disciplinary actions have been filed against any agent you’re contemplating working with. You may also see if their license is current.
Another area of expertise that is very new is assisting purchasers during COVID-19. During the pandemic, the rules and etiquette have changed. They can even change from one day to the next!
Working with a realtor who can go virtual when necessary, work with various social distance norms, and respect your safety concerns can help you receive the house you desire, regardless of the pandemic’s progress. Even though everything is virtual, your agent may be able to arrange for an in-person visit before signing a purchase agreement.
Along with experience, there’s also availability. You’ll probably want to locate a full-time real estate agent who can show you homes on your schedule and who will be available when it’s time to make an offer. If you’re not in a rush to buy a home and the housing market isn’t very hot or competitive right now, a part-time realtor can be a good fit. If you live in a seller’s market, where homes sell quickly and for close to the asking price, you’ll need an agent who can make sure you get the house you want before someone else does.
Buyer Representation Agreements: Important Information (BRA)
A real estate agent will ask you to sign a Buyer Representation Agreement at some point throughout your interactions with them (BRA). When this happens, it varies depending on your location and your agent’s desire. You are free to speak with various real estate brokers until you sign a BRA. It’s possible that this will give you access to additional properties, but it’s unlikely because all agents work from the same listings.
A BRA is a legal document that declares you as your real estate agent’s client. When you sign one, you’re agreeing to work with that agent exclusively for a specific period of time. The BRA will outline the services provided by your broker, their compensation, what is expected of the buyer, and other pertinent information.
Before you sign this agreement, make sure you read it thoroughly. Find out what something means if it’s unclear. In a Buyer Representation Agreement, there are a few aspects that are common:
- It lasts 90 days.
- You are not obligated to buy a property during this time.
- You may still be compelled to compensate your agent if you buy a house without their help. Check for a holdover clause as well. If there is one, it will extend the time you have to pay the agent after the agreement has expired.
- If both of you agree, the arrangement can be terminated early.
- Your agent has a legal obligation to work in your best interests.
This last point is crucial. Your agent is not required to operate in your best interests if you haven’t signed a BRA. Of course, the rest of the agreement is equally vital. And having one will spell out exactly what your agent must accomplish for you for the duration of the contract.
Last but not least, a BRA must be signed before an agent can make a purchase offer on a residential property. Before your agent may submit an offer on a house, land, or condo, you must sign a binding agreement with them. These minor hiccups can lead to disappointment.
When looking for a real estate agent, what are the red signals to look for?
An agent that represents both the seller and you, the buyer, is usually a red flag. A double-ended agreement is what it’s called. It’s difficult to determine if an agent is looking out for your best interests as a buyer when they profit from both the sale and the acquisition of a home.
This type of arrangement can work in some instances. Typically, this necessitates the use of a neutral third party to convey any offers to the seller. Don’t be hesitant to stand up for what you believe in.
Another red sign is if you simply don’t like or want to cooperate with an agent. Purchasing a home is both stressful and exciting, and it has the potential to drastically alter your financial status for the better or for the worse. You want to do it with an agency you enjoy working with and are willing to devote a significant amount of time to.
If you can’t locate any reviews or information on an agent’s real estate past, they might not be a good fit for you. If you’re just getting started, you might want to go with someone whose credentials you can verify. Again, it necessitates investigation.
Another red flag for any buyer is failing to investigate a few agents before deciding who to engage with. A house purchase, as previously stated, is a major deal; perhaps the greatest deal of your life. So you’d like to do it with the best realtor you can find.
Look for an agent who is comfortable with numbers. This contains information such as how long homes are on the market, how much they sell for, how much they go over or below asking price, and how many homes the realtor has assisted clients in purchasing. A red flag is a realtor who refuses to provide precise answers to numerical questions.
How to be a great client of a real estate agent
In a competitive real estate market, the top real estate agents will be in high demand. So, when you locate one, be the kind of client they want to deal with! You wish to establish a relationship once more.
Getting pre-approved for a mortgage before beginning your realtor search, as we discussed before, is one of the greatest strategies to secure a buyer’s agent. A lender or bank that has pre-approved you has already assessed your financial status and agreed in principle to a specific mortgage amount. As a result, the agent isn’t squandering his or her time.
Mortgage pre-approvals are attractive to real estate agents since they demonstrate that you’re shopping for homes within your budget and that you’ll be able to make an offer. Keep in mind that they are providing their services for free until your property transaction is completed.
Another stage is to be as specific as possible about your requirements. The type of dwelling, the size, the budget, the features, and the location are all factors to consider. When you’re clear on what you want, your realtor will be able to direct you to properties that are a suitable match. You’ll spend less time looking at places that aren’t a good fit for you.