Going straight to the listing broker is not always the best idea!
By Tracy Roughton – mtltimes.ca
Now that we are in the buying season, Eleni, myself and our other colleagues are working with quite a few buyers. It’s a good time to talk about the roles of real estate brokers in a transaction and 5 reasons why going straight to the listing broker to make an offer is not always the best idea!
- NO DEAL
TO BE HAD
Some buyers believe that by going straight to the listing broker to make an offer, they will be getting a better deal. The truth is that the sellers of the property are responsible for paying the commission to both collaborating brokers so there is nowhere to receive a discount on the price you will pay for the property. In the business we call this “double ending” because we will receive the commission of both sides of the deal. We are in fact doing both jobs and have the same amount of work which is why when asked, most of us will not lower the commission in this situation.
- CONFLICT OF INTEREST
Some may argue that you are at a disadvantage by going straight to the listing broker because they will have a conflict of interest. The obligations of the listing broker are to the seller as they have a brokerage contract with them to sell their property. Legally a listing broker can represent both sellers and buyers (which is not the case in some provinces) and it is our job to represent the interests of anyone we deal with but you can understand that they can’t help but have a bias towards their sellers.
It is always in your best interest as a buyer to make an offer on a property through a buying broker. This way both parties will be represented fairly in the negotiation and the goal in the end is for the seller to sell for a fair price and for the buyer to buy for a fair price. When there are two brokers involved, we will collaborate so that each side will have their needs met.
- NEGOTIATING POWER
We will be able to negotiate on your behalf, from the first offer, counter offers and straight through the inspection where more negotiating may have to happen. If something comes up that compromises the property in which case we can find a solution by requesting the seller make repairs or we can lower our offering price as an example. In the case of a condo purchase, we will also help review and explain the legal documents of the condo association including the rules and regulations, and the finances.
- NO COST TO BUYERS
The most important reason to work with a buying broker is that as a buyer you will not pay for the service of a broker, the sellers will pay the commission to your broker…in other words our service to you on the buying side is free so why not cover yourself?