What is buyer agency or representation?
In my earlier post I showed you a difference between a client and customer in real estate. I described two situations where you as a buyer want an answer to the same question. I mentioned briefly what it is the buyer agency in real estate. Now I would like to point to all buyers who are reading my blog why it is in their interests to work with a realtor who will represent their interests during home-buying process.
Reason #1: signing a Buyer Representation Agreement (BRA) with a realtor, you hire him or her to work in your best interests, i.e. to protect your interests during the deal.
Reason #2: BRA specifies the obligations that a realtor will provide to you during the service. Your confidentiality and your motivation will be protected. The brokerage will have the highest level of commitment to you under a contract.
Here, I would like to mention that signing BRA you also own commitment to a realtor and his brokerage. Typically, a buyer will be obliged to work exclusively with a brokerage during the term of BRA.
Reason #3: As a client you will be advised on what price should be offered and accepted, what conditions will work better for you as a buyer. You will be represented during negotiations and entire process of buying a home.
Reason #4: It will cost you nothing to work with a realtor as a buyer. Why not to use all the benefits that BRA can offer?
Reason #5: BRA has an expiry date, and it does not mean that you have to buy home during BRA period. The contract can expire without you even buying a home. If you work with a good realtor, I would advise to extend the contract.
It is important to remember who a realtor is working for. A good realtor will start his or her relationship with a homebuyer explaining the difference between customer and client in real estate. If you did not get that explanation, do not assume that your interests are protected.
Real Estate Counsel of Ontario is a reliable pool of information for buyers and sellers in real estate. You can read more about BRA here.