Remaxultimate’s Blog

Absolutely!

In the past week, I had a couple of agents approach me with scenarios of potential buyer clients that were contacting individual listing agents to show them the property.  Some of the Buyer clients were even questioning the necessity to sign the agency agreements.  

Everything we do and say educates our clients and at some point in time we must of given the impression to the public that these forms are not mandatory and by calling the listing agent directly, they possibly would be even saving money by cutting out the Buyer Agent.  Nothing could be further from the truth. 

In my 20 plus years in real estate experience, I can’t see how a client has saved money by cutting out the Buyer agent and going through the listing agent alone.  Whenever an agent meets with a potential seller to list a property for sale, the first order of business is to establish a marketing price and decide on the best terms that the Seller (the client) would accept.  Once all this is settled the marketing plan goes into action. 

When a buyer comes directly to the listing agent, it’s typically become the expectation of the buyer that the agent will reduce the commission in favour of selling the property and this is where things lose their clarity.  First, it’s the duty of the listing agent to get the best price for their client the Seller.  Secondly, why wouldn’t any benefit in a reduced commission or fee not be realized by the Seller?  Especially when that same listing agent told the Seller at the time of evaluation what the price should be. 

When you drive down the street, how many different company For Sale signs on each property do you see??  One.  Sellers sign a listing agreement allowing them to market the property for sale.  TREB has created for buyers a system called the Buyer Registry System that is in reality similar to an MLS system.  Our governing bodies known as RECO and TREB is very clear in their requirements to have Agency explained to the consumer at the earliest opportunity. Buyer representation agreements outlining who represents who and how need to be disclosed on all offers and can only be accomplished by having these important forms signed.

Being represented by your own agent is vital and this is why Buyer Agency was created.  Having someone in your corner to educate, guide, negotiate and look out for your best interest is vital when it comes to making arguably the largest investment of your life.   Shortcuts or the perception that you will be saving money is not advisable.  If an agent doesn’t take the time to sit down with you, explain and ask you to sign these necessary forms, what else are they missing or not telling you??  Is your agent full time and continuously keeping themselves updated on all requirements??

At RE/MAX Ultimate we take great pride in representing our clients the right way

Tim Syrianos
RE/MAX Ultimate Realty Inc., Brokerage