In: Real Estate News28 Sep 2011
Many people use PropertySold.ca because they want to eliminate or reduce real estate agent fees. Some of our customers have used a real estate agent in the past, and some customers have never used a real estate agent.
Let’s examine what a real estate agent will do in a residential transaction.
For a buyer:
If a buyer enlists the service of a real estate agent, the agent should be performing the following tasks.
1) The agent will ensure that the buyer sign a “buyer agreement”. This contract says that the buyer will pay the agent a commission of X % if the buyer buys a home within the length of the contract.
2) The agent will then search the MLS database for a home and book appointments to see the home with the buyers.
3) When the buyer finds the home that they want to buy, the real estate agent will fill out multiple documents.
- a form that includes driver’s licence info and SIN number. This document is for the government and is required whenever large sums of money are changing hands (ie the deposit).
- a contract that includes information about how the commission will be paid, to whom the commission will be paid, and the amount (% of sale price).
- Another contract that needs to be filled out is the offer to purchase. This document will include the buyer’s name, seller’s name, asking price, address, legal description, closing date, irrevocable date, fixtures and chattels included and excluded, title search date, signatures….
- Any schedules (conditions), will also be completed and attached to the offer to purchase.
If there is any negotiation, the offer and schedules will go back and forth with changes and initials. The real estate agent will scan, print, fax, and email these documents back and forth to the listing agent.
4) Once the offer is agreed to, the real estate will instruct their buyer to go to their real estate lawyer with the signed contract.
5) If there is a home inspection, your agent should be present. They will need to let the home inspector into the home.
6) If there are any waivers or notices for conditions, the real estate agent might be involved. The agent only gets paid when the deal closes, so they have a vested interest in making sure all the documents are properly submitted by the correct date.
Once the deal is firm, you might not hear from your real estate again. They really don’t have any thing more to do, as the buyer usually deals with their lawyer from this point on.
If an agent is representing a seller, they will usually perform these functions.
For a Seller…
1) The agent will complete a listing agreement. This appointment will include a listing agreement that includes the amount of commission that they (and buyer’s agent) will receive.
2) At the listing agreement, the agent will take measurements of your property and complete the MLS data form. The agent will also arrange for, or take, photos.
3) After the listing meeting, the agent will go back to the office and arrange for the posting of the home on the MLS system.
4) The agent might arrange for showings (but often an assistant does this).
5) When an offer comes in on the property, the agent will present the offers and the seller will decide “yes or no” and sign if required.
6) The agent will then communicate any home inspection dates and confirm if the appropriate documents are received and confirm if the deal is firm.
That’s most of it! What did you think? Do you think each side is worth 2.5% commission? If not what do you think all that work is worth? Late nights, multiple documents, posting to MLS? Mutiple showings…What are all those task worth to you?
For all of your real estate questions please call PropertySold.ca Inc. today at:
1-855-900-SOLD and speak to a customer service representative. We have licensed real estate professionals on staff ready to take your call right now. List your property for sale by owner today. New! We now accept real estate listings from real estate agents and new home builders & developers. More Information »
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