Calgary Houses For Sale By Owner & Agent Buyer Help

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Calgary Houses for Sale - Buyer Help Image

WHAT HOME BUYERS MUST KNOW!

   Buying a home is an important decision that can be made wisely. Homebuyers should have the assurance that their Realtor® has contributed to a wise purchase.
   What does a Buyer's Agent do?
   Firstly, an Agent does not (or should not) make the decision as to what home you should buy. However, a person who is the Agent has undertaken an obligation to always act in the best interests of the Buyer. That means showing the Buyer ALL the properties available that meet the Buyer's criteria, as well as providing information as to the proper market value of these properties..
   The Agent should also ensure that the Buyer completes important steps throughout the buying process that protect the Buyer from risk and needless financial (or other) obligations.

Does this not happen with all licensed Realtors®? Unfortunately, the real estate industry has not yet given full protection to buyers. For example, Realtors® in Alberta must subscribe to the Alberta Real Estate Insurance Exchange. In recent years, over half of claims made involved dual agency situations. (Dual agency is where one Agent represents both the Seller and the Buyer.) One claim involving dual agency that went to court brought a revealing decision. The judge determined that the real estate Agent could not act in the best interests of a client when representing two opposite sides of the transaction.

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WHO IS WORKING FOR THE BUYER?

People would hardly recommend that both sides in a legal matter should use the same lawyer Yet, many real estate transactions do happen with both the Buyer and the Seller using the same Realtor®. When disputes arise, it's usually the Buyer who is the victim.

WHO IS WORKING FOR THE BUYER (PART 2)?

Similarly, Real Estate Associations have legislated that clients receive WRITTEN confirmation of the duties that their Agent will perform. This is always done for Sellers.

It is required that Buyers receive the same WRITTEN protection, but, unfortunately, this is seldom done for Buyers.

As a result, many Buyers are vulnerable to situations such as the following:
- not being represented for negotiations
- not being informed of the property's true market value
- not being informed of the property's condition

AND, most significantly, many Buyers are NOT shown ALL the properties available that meet the Buyer's criteria. A legitimate Buyer's Agent will ensure that all properties that meet the Buyer's criteria are shown. This includes for-sale-by-owner properties, exclusive listings, listings without for-sale signs, and newly listed properties. (The listings posted onto the internet are always a few days behind the Real Estate Board's internal Realtor® database. Hence, good properties are often sold before they're advertised.)

BONUS COMMISSIONS

Equally dangerous is the questionable practice of bonus commissions. Buyers are generally not informed if "their" Realtor® will be receiving a bonus commission upon the purchase of a property. Is it ethical for a Buyer to be unaware if the Realtor® is showing properties based on the commission payable to the Realtor®?

A genuine Buyer's Agent will give a WRITTEN committment to the Buyer, giving the Buyer the assurance that the Realtor® is ALWAYS acting in the Buyer's best interests.

WHAT ELSE DOES A BUYER AGENT DO?

Gives help with very important matters. One is assisting to obtain the best possible financing. What difference can good financing make? Well, consider that a .75% differential on a mortgage rate can change a mortgage from $191,000 down to $179,000.
As well, some properties can be financed in such a way as to save thousands in mortgage insurance fees.

The Buyer's Agent should help protect the Buyer by ensuring that prospective properties conform. This will save serious problems and costs.

ERIN WOODS 888 Erin Woods Dr SE. R2. Side Yard Relaxation for an Existing Deck and Fence. Appeal from refusal. Appeal No. 033/98
ERIN WOODS 888 Erin Woods Dr SE. R2. Appeal from an order to discontinue and remove the portions of the addition that are encroaching into the minimum required rear and side yards. Appeal No. 034/98

(Published in Thursday newspapers. Or click on City of Calgary link.)

There are numerous false myths regarding 'mother-in-law suites,' zoning, non-conforming houses, etc. Whether these statements originate from the Seller or the Seller's Realtor®, the Buyer's Agent will help the Buyer understand these myths and be protected.

TUXEDO PARK 107 31 Av NE. R2. Appeal from an order to discontinue and remove the kitchen, including the lower cabinets, counter tops and sink from the basement kitchen area. Appeal No. 039/98

It should always be borne in mind what role a lawyer plays in the real estate purchase. A lawyer cannot undo the written agreement. VERBAL assurances given by the Seller or the Seller's Realtor® are generally not enforceable.It is imperative that the Offer to Purchase form be fully understood. This means what is included in the agreement, and what is NOT included in the agreement.

PROPERTY CONDITION & INSPECTION

Although a Professional Property Inspection will be strongly recommended, the Buyer Agent should still provide to the Buyer a preliminary list of important items to check. The Buyer can avoid paying for inspecting a property which contains visually discernable problems.

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The information on this site is sponsored by Randy Wall, ABR®, [Tel. (403) 284-2008 ] Calgary's most experienced Buyer Broker. He has been representing buyers for 13 years and has been an Accredited Buyer Representative® for eight years. He would be happy to work exclusively FOR YOU.

Randy Wall is an Associate Broker with C.I.R. Realtors. He is licensed by the Real Estate Council of Alberta and belongs to the Calgary Real Estate Board, Alberta Real Estate Association and the Canadian Real Estate Association.