Buyer Agency
If you are thinking of purchasing a home sometime in the future, then it is extremely important that you have some grasp of agency relationships. So what is meant by the term "agency relationships?" Basically, we can define agency relationships as the delineation of the responsibilities of each agent in a transaction - to whom does each agent owe allegiance or, to put it more simply, who works for who? Here in British Columbia, agency disclosure is mandatory. In plain English this means that all agents party to a transaction must now state in writing who they work for. But how does this affect you, the buyer? Why is this such an important issue?
How Can a Buyer's Agent Help?
Some agents represent the best interests of the seller. Some agents act as "Buyers Agents" and represent the best interests of the buyer. You need to know who you are dealing with. If you decide on a Buyer's Agent, an agency agreement creates the relationship.
What a Buyer's Agent can do that a Seller's Agent can't do:
- Provide you with information and guidance to help you make an informed decision about the "right" price.
- Help you negotiate the best deal for you.
- Assist with structuring the many terms in a sales contract so they are to your advantage.
- Keep confidential any information about you which could hurt your bargaining strength.
- Inform you about the desirability of different areas, floor plans and resale characteristics.
- Point out reasons NOT to buy a particular house. A Seller's Agent has a duty to promote that particular house.
A Buyer's Agent has the duty to find the right house for you regardless of who owns it. A Buyer's Agent has the duty to protect your interests and disclose any "behind the scenes" information which might affect your decision.
What does this service cost? Usually nothing. Your agent is usually paid by the Listing Broker, commission which is considered to come from the transaction itself.