Why You Shouldn’t Buy Your Home With The Listing Agent

Buying From Listing Agents

Some homebuyers are comfortable with purchasing their property through the listing agent, who represents the selling party, while others prefer to use their own agent. When making an offer through the listing agent it means the buyer will search for homes and then make an appointment with the seller when finding a property they’re interested in. They may then make an offer through the listing agent since this person is actually representing both the prospective buyer and seller.

Since the listing agent represents the seller, they have certain responsibilities to their client, which includes trying to negotiate the best terms and price possible for the home. The agent needs to keep the seller’s intentions confidential and not reveal how low they may be willing to go on the sale of their home. It’s no secret that the agent works for the seller and has their best interests at heart. There are other options though, such as hiring your own agent when buying a home.

The buying agent is obligated to offer competent, honest and fair service to everybody involved in the sale. The agent will ask you to agree to a buyer’s representation agreement and will look after your best interests throughout the home-buying process. He or she will try to negotiate the most favourable terms and price for their client and keep all the related information in their confidence.

It’s perfectly legal for an agent to represent both the seller and buyer In Ontario and it’s known as multiple representation. However, it can get quite complicated when they’re trying to buy and sell the same property at the same time. The agent will need to have both parties concerned confirm in writing that they fully understand and consent to having the agent represent both the buyer and seller. It can be a little difficult though since confidential information can’t be revealed to either party and everybody needs to be satisfied with the deal.

Even though the listing agent has access to all the offers on a home, they aren’t allowed to share this information with a buyer and advise them how much to bid. If they do, they could lose their real estate license. Also, some listing agents may tempt a homebuyer with inventory that hasn’t technically been placed on the market as of yet. But the buyer often ends up paying more than the market value. In most cases, it’s not cheaper to buy a home through the listing agent. This is because the listing agent makes a commission on homes they sell from the seller and benefit from a higher-priced sale. If the listing agent happens to represent the buyer too, the seller may save on commission paid, but it won’t benefit the buyer.

Most listing agents will try to sell potential buyers on all the positive aspects of the home and the neighbourhood, but they aren’t obligated to tell you about any problems. On the other hand, an experienced buying agent will know exactly what type of questions to ask and how to research the local area and its homes. Homebuyers need to realize that a listing agent is trying to sell a specific property and won’t recommend other options that may suit you better. The agent isn’t really concerned about the buyer finding the right house as their job is to sell you this house only.

When hiring your own agent, he or she will be working only for you and will attempt to find the perfect property and neighbourhood to match for your unique situation. This means they’ll take the time to search different areas and take care of the leg work. Any personal information the buying agent knows, such as your time frame and budget etc. will be kept confidential so it won’t negatively affect you during negotiations. A buying agent needs to have exceptional negotiating skills on behalf of the buyer and it’s hard to negotiate with themselves if they happen to represent both the buyer and seller.

If you have questions about which type of agent you should work with, contact me today to learn more.

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