Why Buyers Should Always Have An Agent
This week, let’s keep things plain and simple: All real estate buyers should be using a knowledgeable, professional agent to help them with their investment purchase. No exceptions.
Why? Well, while it’s true that there may be some sellers of real property who feel that they can market and sell their investment privately without the help of a real estate agent, personally, I can say without bias, I have seen this strategy routinely fail to produce the intended results and cost savings, and most often produce no results at all. With that being said, there is even greater reason for buyers in particular to use a Realtor than for sellers.
For one thing, the buyer doesn’t pay for their Realtor’s services. That’s right! The way that real estate transactions are most often structured in organized real estate trading is such that the seller pays both the commission of the listing (seller) agent and the buyer agent. Does this mean that the buyer’s agent is then working for the seller? Absolutely not. The buyer agent owes their loyalty to the buyer alone, and therefore can negotiate on the buyer’s behalf without restriction or conflict.
Another major reason (as if you even need another one) is the nature of the real estate deal itself. Think about it: the buyer is much more at risk in this type of transaction. When the deal is completed, the seller has money and the buyer has property. Because of the simplistic, commoditized nature of money (money is money is money – it’s all the same) and the complexities of real property, the buyer needs to be sure they are winding up with the property they had bargained for, and not one with significant defects or shortcomings. An effective Realtor protects this interest for the investor during the deal structuring process.
Speaking of this process, let’s think about the alternative to working with a Realtor in your investment search. I suppose it would include looking on your own through the local MLS, without having the various benefits of automated search, and then going to see listed properties at their open houses or by calling the listing agent. The biggest problem here can come at the time that you, the investor, are ready to prepare an offer.
In theory, the listing agent for the selected property will be happy to prepare your offer for you, and most will do a conscientious, impartial job. However, if this person has been working with the seller for months or years, and only just met you that day for the showing, it’s possible that human nature could come into play and cause them to bias toward the seller’s interests. In that case, as the old real estate adage says, “you wouldn’t go to court and use the other party’s lawyer, would you?”
There are myriad other reasons for using a Realtor, including obviously their experience, knowledge, advice, and for the cynics out there, their Errors and Omissions Insurance, which protects deal integrity in the event of a mistake, but hopefully the above has shed some light on some of the less obvious points of note. Suffice it to say, every buyer and investor should have the counsel of a professional.
Speaking of which, are you looking to buy Toronto real estate this spring? Call my office today and we’ll get you started out right.
Until next time,
Shaun Nilsson
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