Understanding Buyer Brokers

Buyer Broker vs. Grapevine Listings

Grapevine Listings (http://grapevine.ca/) are typically Broker free listings by a seller. Some sellers may choose to list a property and perform every subsequent aspect of the transaction on their own, or have a broker represent them (Seller brokers). Buyer Brokers represent the interests of a Buyer, and in some rare case, a broker may represent both parties (no idea how this could ever work fair for both parties! ).

Buyer Broker

A common misconception about using a Broker while looking for a house is in trusting the intention of the Broker - is the intent noble, is there credibility in that person, are you best interests represented, etc. Before answering any of the above questions, it is important to understand the role of a Buyer broker. The following illustrates the role of a Buyer Broker - 

role of a buyer broker

Typically the Buyer broker is compensated half of the amount that a seller entails for a sale (one half to Seller broker and the other half to the Buyer Broker). In some cases, buyer brokers offer to share some of their commission with you. 

Caution: be wary of signing any exclusive contracts with the Buyer broker where you will have to compensate them even if you find a house on your own.

 

Summary

Few points to summarise -

  1. As seen above, a lot of steps are necessary and in the absence of a broker, you will need to invest a lot of time for each of the above.
  2. On the contrary, having a broker does not mean you can sit back. You are equally responsible for ensuring due diligence on the paperwork.
  3. Ensure you do due diligence in finding a patient & committed broker who does not rush you into decision making! Ultimately, this will probably be the biggest investment in your life; so it does not bode well to rush your decisions .

 

Recommendation / Partner

Our recommendation / partner for your House Brokerage needs are - 

Navi Singh

This email address is being protected from spambots. You need JavaScript enabled to view it.

He is an amazing person at understanding needs, and more so in giving you unbiased opinion on houses / prices.

 

More Info

Refer to our other articles once you have found your dream home -

House: Mortgage Brokers vs. Direct Loans from Lenders