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Prior to 1995, there was no buyer agency in Ontario. This means that buyers had no choice in who their agent would be when buying a home. Today I want to talk about buyer agency and why it’s so important.
The reason why I’m so passionate about this issue is that I was selling homes in Ontario before 1995. When the time came to close on a deal, there was a clause in every contract stating that the cooperating broker had a fiduciary obligation to represent the seller’s interests. This obviously led to a lot of conflicts.
The change in 1995 was great for buyers, so it confuses me when I hear people say they don’t need an agent to find a great home. At some level, I get it. Online home shopping is better than ever, but you won’t get the best deal possible without an agent’s help.
When you hire a Realtor, their job is to find you the right house, not any house. I’ve seen people hesitant to sign a buyer agency agreement because they don’t want to be pressured to buy a house. However, just because the agent will find you a great home doesn’t mean it’s going to be today. Part of finding the right home is making sure the buyer is ready to buy.
If you don’t sign a buyer agency agreement, whatever agent you happen to be working with at the moment is far more likely to pressure you because they don’t know how long you will work with them. It’s the same issue with listing agents. They are contractually obligated not to show you any home other than the one they’re selling, so they’ll want to make sure you don’t look anywhere else. Meanwhile, the security of a buyer agency agreement gives us the time to find you a good home, not the one that’s right in front of you.
"When you hire a Realtor, their job is to find you the right house, not any house."Finally, there will always be people who think they can get a better deal for themselves without an agent. Not only that, but they don’t have to pay commission fees! I’ve seen people talk to listing agents with this mindset, and it never works out. At the end of the day, the listing agent will always be more obligated to represent the seller’s interests than the buyer’s. Without an agent to help you negotiate, you could end up with a bad deal.
So if you’re thinking about buying a home, I implore you to find a great agent. Everyone at the Mulholland Ross Group is experienced and ready to help get you the best deal possible, so please reach out to us via phone or email with any questions. We look forward to hearing from you!