We Can Do It! Together.
Chances are that finding your home will be unique to any other purchasing experience that you have had. Firstly, your new home could be the most you will ever invest in one purchase. The success of your purchase will rest heavily on your willingness to be diligent and committed to the task. This determination and sacrifice can be the crucial element that determines your ultimate success in finding your new home.
At this point you maybe thinking, "what are you going to be doing as my realtor if I’m doing all the work?"
The truth of the matter is that in order to have the very best chance of finding the very best home we need to be working together as a team; each of us doing our parts. As your realtor, I need to be just as committed to the task and even more accountable for the skills that I bring to the table.
In order to be effectively represented in your home purchase there needs to be a team member that has a variety of rounded skills to ensure the best possible result. Someone needs to be intimately familiar with the local real estate market. Also, up-to-the-minute industry knowledge can make or break a transaction. The real estate industry changes almost daily with new contract clauses being implemented and others modified. And it doesn’t stop there; inspection techniques and issues such as toxic mould, grow houses and pine shake roofing are just a few more challenges that the industry is facing. Keeping pace is one thing, mastering the system to a client’s benefit should be your realtor’s target.
Many say that "Pit-bull negotiating is what every buyer wants." The reality is that the best transaction often leaves a bit on the table. You don’t want to be planning your move while the seller is looking for a way to get out of the transaction. Negotiating has been called an art and it really is. It’s like most skills, practice hones the edge and the sharper you become. When negotiating, the one with the most skill oftentimes makes the best deal for his people. Invariably the most highly skilled negotiator has a combination of experience and determination.
The third attribute of a winning team is trust. Without it a team is crippled into being only half as effective as it could be but with it true synergy will immerge. Mutual trust is critical for a number of reasons. Timing is probably the most important reason that comes to mind when finding your home, let me explain. When you are looking for a home there are always other buyers doing just the same thing, looking at homes just like you. Even in a slow market it can be difficult to find a clean well priced property. When a property comes to the market that is exceptional it can sometimes take weeks or even months to find one that compares. I’m sure that you’ve heard the expression that you don’t need to become a mechanic to drive a car, well the same thought holds true for real estate. You see, the home that is right for you might be the twentieth home that you see. At that point you will have seen nineteen homes and you will have a good "feel" for the market. But what if the right home is the second or third. Now you see what I mean by trust. Trust is something that should never be assumed and cannot be demanded, it must be earned. The reality is that in these situations it is more than often the people that trust their realtor that do the best.
Being a qualified, professional agent demands dedication and integrity. My desire is to help you to find the very best property possible. I am ready to commit my knowledge, experience, and time to the task. My desire is that you would mutually commit to me so that I can focus my efforts towards finding your home.
At this time I need you to be aware that as a realtor I work solely on a commission basis. I do not get paid anything until a transaction is complete. In fact I pay all of my own expenses and my office bills, rent and service fees.
My commitment to my clients is genuine and sincere. If you choose to work with me I will protect and loyally promote your interests. I will be responsible to your confidentiality and dedicated to the full disclosure to you of details in your transaction. I will be accountable for representing you to the utmost of my ability.
My long-term success as an agent is linked directly to my performance. It only makes sense that it would take a truly satisfied client that trusts my ability completely to refer me to friends and family. In the past ten years over 80% of my business has come from repeat clients and referrals. I have a large network of people that rely on me for their real estate needs and who trust me with their friends and family. My goal is to have you become another client that will return in the future and that you will refer me with confidence to your friends and family.
In the past, Realtor worked under a sub-Agency relationship. That meant that all Realtors essentially worked for the Owner of the property. Commissions were paid by the Owner. The Realtor who brought the Buyer to the table was also compensated by the Owner. The Realtors on both sides of the transaction owed fiduciary duties to the Owner under Sub-agency. The only duty to the Buyer was to deal fairly and honestly, no fiduciary duties applied. In Calgary most properties listed on the MLS provide for the buyers Realtor to be paid from the proceeds of the sale. However, in the ever changing marketplace, some owners prefer to let the buyer's agent negotiate their own arrangements with their client. However, more and more homebuyers wanted the services of an Agent who owed full fiduciary responsibilities, duties, and loyalty to the Buyer.
For instance, a Seller signs a Listing Agreement (Sellers Brokerage Agreement) with a Realtor of their choice, which sets out the terms, and conditions that a Seller would find acceptable to sell their home and the compensation they agree to pay to the Realtor. A Buyer would sign a "Buyer Brokerage Contract".
The Buyer Brokerage Contract is the written agreement that establishes an agency relationship between you (the buyer) and the real estate brokerage (and its agents). Compensation would also be clearly defined as to where and how the agent would be paid for his services.
The concept of a buyer's agent or buyer's broker might seem new, but it has actually been around for a long time. The main difference now, is that the buyer will sign a contract with the Agent. When you sign the agreement, you agree to be represented by only the agent you’ll be working with and all other agents in the same brokerage.
The Buyer Brokerage Contract sets out duties and responsibilities of both parties. Buyer representation service begins with a needs assessment, a search for the right property and negotiation of the best price and terms. It also includes helping to arrange financing if necessary, arranging for home inspections, arranging for documentation to get to the lawyer, and arranging for possession. The bottom line is that a buyer's agent makes their sole priority finding the client's dream home, in the least amount of time, and for the best price. Based on the client's wants, needs and desires, the buyer's agent can sift through the thousands of available properties and narrow the search to only the properties that meet the client's criteria.
Buyers have obligations under the contract as well. In signing the contract with a brokerage, you agree that all agents in the office can find suitable properties and help you negotiate the terms of any Purchase Contract. You need to provide information to enable the brokerage to search for properties that make the most financial sense for you. Finally, you need to inform the brokerage of any properties you’re interested in viewing. The buyer’s responsibilities under the contract enable the buyer’s agent to do the best job s/he can for you.
As your agent, the Realtor owes you the duties of utmost care, integrity, confidentiality and loyalty. And as a point of important information to gather as a buyer or seller, you should make sure you discuss "agency" with your Realtor.
You’ll also find a section in the contract about agency disclosure. This authorizes the buyer’s agent to act as a dual agent and outlines the duties the agent owes to you in a dual agency situation. A dual agency situation could occur if you’re interested in making an offer on a property listed by your agent or another agent in the brokerage. In this case, the agent and the brokerage act for both you and the seller and can’t fulfill all of the fiduciary duties owed to both parties.
In a dual agency situation, the agent doesn’t owe a duty of confidentiality and will disclose to you and the seller all defects and information known about the property that may affects its value. The only information that the agent will not disclose to the seller is the minimum or maximum price you (the buyer) are willing to pay. The agent will also not disclose any information about the price the seller will accept or the reason they’re selling. Further, in a dual agency situation, the agent will not disclose to you or other buyers the terms and conditions of competing offers on the property.
Paying Your Agent
Another important part of the Buyer Brokerage Contract is the section that determines the brokerage’s compensation. Real estate commissions are negotiable in Canada and you and your agent have to agree on a suitable amount of compensation. Usually, the contract will state that the brokerage will receive either a portion of commission offered by the seller’s brokerage or a fee that is negotiated between you and your agent. If the seller’s brokerage doesn’t offer a portion of commission to your buyer’s agent, you may want to take that into consideration when making an offer. Some agents might ask for a deposit on their fee to be held in trust and applied to any commission payable or refunded to you if the contract expires.
Ending the Contract
The Buyer Brokerage Contract is in effect until the expiration date negotiated between you and your agent. The contract can be renewed or extended if you and your buyer’s agent need more time to search for a property or close a deal.
The Buyer Brokerage Contract is a legally binding agreement but it can be amended or cancelled under certain circumstances. For example, if you or your spouse are suddenly transferred, talk to your agent about terminating or amending the contract. Make sure to ask your agent about any ongoing obligations on your part if the contract is terminated.