Correcting such misconceptions about commissions is something that is very common for most us REALTORS®, especially in such competitive market that we experience in the Greater Toronto Area. A Realtor‘s commission isn't set in stone, it is negotiated and agreed upon by prospective buyers and sellers and Realtor and spelled in writing in the Buyer Representation Agreement or Listing Agreement.
Whether a prospective buyers is a first time or experienced home buyer, part of finding the right REALTOR® is looking for one who asks the right questions, gets to know their finances and demonstrates expert knowledge of current market trends. It also means negotiating agreeing on a commission that works for all parties involved.
When a prospective buyers starts working with a REALTOR® they should at first sign a Buyer Representation Agreement (BRA). This contract establishes the terms negotiated and agreed upon by prospective buyers and Realtor how they will work together.
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For prospective sellers, the contract is called the Listing Agreement. The document provides a REALTOR® with authority to offer for sale and market the home; it establishes the listing price, length of contract and also the Realtor‘s commission.
A REALTOR'S® commission is either a percentage of the sale price, or a previously agreed specific amount, or it can be a combination of the two.
Owning a home is important and big investment, prospective buyers get the home of their dreams," says Sukkau. "We want our clients to be happy, and the Buyer Representation or Listing Agreement is our promise to work hard on their behalf."
Potential prospective buyers and sellers should do their research and interview a number of REALTORS®. They‘ll want to find a Realtor who makes them feel comfortable, presents him or herself professionally and has a marketing plan that is Tailored around their needs.
Both prospective buyers and sellers should ask questions about the agreements they‘re signing and discuss with the Realtor in details such as:
- Length of contract: How long will both parties be working together and what regions or area does the contract cover?
- Value: A seller‘s Realtor can complete a market value assessment and advise on a listing price. A buyer‘s REALTOR® will help them find a home in their price range and make sure to consider their list of 'must have features' in their home.
- Representation: Services offered by a REALTOR® can vary, so it is important for a prospective buyer or seller to agree with their Realtor on how they are going to work together to either find the right home or sell their home for the best price possible.
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