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Get Your Own Ottawa Real Estate Agent
For most of us, buying a home is the biggest single purchase
we will ever make and it can be a nerve wracking, downright
scary proposition, especially for first-time homebuyers. Some
people can, and do, go it alone when buying or selling Ottawa
homes. If you're savvy enough to navigate the murky waters of
a real estate transaction then more power to you. But the value
of an experienced Ottawa agent is immeasurable, particularly
for first-time buyers.
Traditionally real estate agents represented
the seller. That was true if the agent helped a homeowner market
a home or a homebuyer find the right home. But agents were legally
bound to represent the seller and typically the seller paid
both the listing agent and the agent who brought the buyer.
Now there are new ways for real estate agents
to work with buyers and sellers.
Consumers have choices - If you want to sell a home you can
engage a real estate agent who is a “seller’s agent”.
If you want to buy a home you can work with a “buyer’s
agent.”
What can a real estate agent bring to the table?
Real estate agents are professionals who subscribe to a Code
of Ethics that is constantly updated to meet changing conditions
in the industry. They administer mediation and arbitration hearings
to enforce their code, which often goes beyond government license
regulations.
Agents typically agree to share information about each other's
listed properties through a local or regional Multiple Listing
System (MLS) which gives sellers' properties wide exposure and
offers buyers an efficient way to house-hunt.
Don’t just call the name on the sign!
In many cases, a potential buyer will see a For Sale sign and
call the real estate agent who has listed the house. If you
do this you must be aware that the “listing agent”
is the seller’s agent and owes first duty to the seller,
but that doesn’t mean they can’t help you…
a little!
Seller’s (Listing) Agent – Beware,
the seller’s agent is on THEIR side!
The seller’s (or listing) agent can work with a potential
buyer in many ways but they can:
- help you decide what you can afford and suggest possible
avenues for financing.
- search other listings and show you homes.
- give you general information about market conditions.
- prepare your offer and present it to the seller.
- guide you through the whole home-buying process.
However - so the seller’s agent is required to disclose
to the seller any information you share with themit is
best to be discreet, especially about things that might cause
a seller to reject your offer, like the fact that you just love
the home and are prepared to pay a higher price to get it.
The seller’s agent can’t give you an opinion about
the condition of the house or about the seller’s bottom
line. When it comes to negotiating, you are on your own!
Buyers Agent – This agent is on YOUR
side!
As a buyer, you have the option to be represented by your own
real estate agent, whose loyalty is to you and your best interests.
Your agent is there to provide a reality check and to handle
the tough negotiations involved before closing.
As your representative, your agent can:
- determine a reasonable purchase price
- search out information about the property, including the
existence of other offers, the seller’s financial situation
and anything else that might affect your decision on the property
or the price you are prepared to pay.
- check out homes that meet your requirements and eliminate
the “duds” so you won’t have to visit as
many yourself.
- discuss the advantages and disadvantages of a particular
home.
- provide general information about homes, recent area sales
and neighborhoods and local lending institutions.
- advise you on how much to offer.
- evaluate improvements and calculate what effect they should
have on the price.
- be an active part of negotiating a favorable price and
terms for you, the buyer.
- assist you in closing the deal, including advising you
on when to bring in other professionals, like inspectors,
lawyers etc.
- A buyer’s agent can usually show you any available
home although there is sometimes an agreement between the
seller and the seller’s agent that restricts access
to a buyer’s agent. However, because most sellers want
their homes shown to as many potential buyers as possible
this is not usually a problem.
A buyer’s agent can usually show you any available home
although there is sometimes an agreement between the seller and
the seller’s agent that restricts access to a buyer’s
agent. However, because most sellers want their homes shown to
as many potential buyers as possible this is not usually a problem.
Buyer’s agents usually receive a share of the commission
paid to the seller’s agent. In some cases they may collect
a retainer from the buyer, charge by the hour or charge a flat
fee. Often the fees are applied against any commission received
by the buyer’s agent. Your agreement should specify how
your agent would be paid.
Finding the right Buyers Agent – How do
you go about it?
Finding a buyer’s agent in which you can have confidence
and trust is similar to finding a seller’s agent. You need
someone with whom you feel comfortable and who understands your
needs and wants. It’s also important to find someone with
the skills and expertise to help you find a new home as quickly
and hassle-free as possible.
- Ask around
Word of mouth is a good starting point in your search to find
an agent to represent you.
- Ask friends, relatives or neighbors for recommendations.
- An agent that spends money on advertising is investing
in their business to attract sellers and buyers. This
is at least an investment in marketing plan to help their
buyers and sellers get more exposure.
- Interview prospects
You should prepare for the interview by deciding what your
objectives are, so you can let the agent know what you expect.
Interview a number of agents from different companies to see
what they have to offer. In the interview, make sure the agent
is listening to you, asking intelligent questions and showing
a genuine interest in you.
You might ask:
- For references, and then check them!
- How many years have they been in business? Experience certainly
counts for a lot, but someone who is just starting out might
be keener and able to devote more time to you.
- What professional training do they have? (Find out what
those letters after their name mean.)
- Are they a full-time agent?
- How many listings do they currently have? More is better,
but an agent can spread himself too thin and may not be able
to give you the attention you deserve.
- How many listings did they have last year? How many sales
did they complete?
- How many contracts have they completed over their career?
What kind of
properties were they? If the agent normally deals with mansions,
finding you a little rancher may not be a priority.
- Do they work alone or are they part of a team? You will
want to meet the other team members and/or the assistant to
make sure you would be comfortable working with them, too.
- How many sellers do they talk to in a day or a week?
Conclude by asking an open-ended question such as “What
else would you like to tell me about yourself and your career?”
This should give you a chance to make a final assessment of
the agent’s personality and attitude. Remember that you
will be working closely with them. If your “this person
bugs me,” bells go off, choose someone else.
By the end of this process you should be able to choose an agent
who feels comfortable to work with and has the experience, or
interest and determination, to do the job. Now you can get on
with the process of buying a home!
Dual agency — A twist to the situation! We
have been talking about buyer’s agents and seller’s
agents as separate entities.
- The buyer’s agent is employed by, and exclusively
represents, the buyer.
- The seller’s agent is responsible for getting the
highest purchase price and best terms possible for the seller.
However, in some cases, especially in a small
town with a limited number of agents and real estate firms, the
same agent or company may represent both buyer and seller — this is referred to as dual agency. In this situation
the agent must represent both sides equally with the objective
of reaching a mutually satisfactory agreement. In most jurisdictions,
the buyer and seller are required to sign a form indicating that
they understand the agent is acting for both sides and that they
have agreed to that situation.
It is understood that an agent who is acting in a dual capacity
may do nothing to the detriment of either the buyer or seller.
Confidentiality is owed to all parties. All parties may be present
at a contract presentation to negotiate on their own behalf and
before making any decisions, all parties have the right to seek
family, religious, financial, and/ or legal counsel.
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