Real Estate, Explained – Buyer’s Agent

August 9th, 2011 \\ Blog, News, Real Estate, Stephanie Stoute, Toronto

Real Estate, Explained – Buyer’s Agent

A Buyer’s Agent is a Licensed Realtor who is representing the Buyer in a real estate transaction.

Typical duties of a Buyer Agent can include:

  • Provide ethical care to the Buyer
  • Qualify the Buyer’s needs and wants
  • Educate the Buyer on the current market place, real estate trends, neighbourhood sales cycles and the purchasing process
  • Assess real estate goals of Buyer and assist in determining purchasing strategy
  • Introduce the Buyer to related industry professionals (i.e. Mortgage Agents, Lawyers, Movers, etc.)
  • Monitoring MLS for property matches and communicate listing details to Buyer
  • Coordinate schedules between Buyer and Listing Brokerage and book showings for prospective homes
  • Accompany Buyer to all showings (typically the Buyer Agent will drive the Buyer from one property to the next)
  • Investigate sales history and trends of a prospective neighbourhood and home
  • Compile offer details and educate Buyer on Agreement of Purchase and Sale
  • Negotiate offers with Buyer and Listing Agent
  • Accompany Buyer on Home Inspections
  • Liaise with the Buyer’s Solicitor
  • Manage deal administration paperwork (picking up deposit cheques, status certificates, completing waivers, etc.)

A Buyer’s Agent typically receives payment from the Listing Brokerage, as per the Listing Agreement signed with the Seller.  The Seller, in standard practice, is charged a 5% commission with 2.5% dedicated to pay the Buyer’s Agent. These percentages can fluctuate.

In some cases a Seller will choose to sell their home on their own and are not offering a commission to a Buyer Agent.  In this case, the Buyer Agent needs to negotiate payment from their Buyer directly.  The For Sale by Owner phenomenon is becoming more relevant in today’s market place, so it is important for a Buyer to discuss this scenario with their Buyer Agent when establishing the agency relationship.

Have any questions not answered in this post? Send me an email at sstoute@propertyedge.ca or call me direct at 416-881-5434.

Stephanie Stoute | Realtor and Co-Founder | Property Edge Real Estate

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