How much of your business is representing Buyers as compared to Listing property for Sellers ?

These are actually 2 very different activities.

A Listing Agent is essentially a Salesman who ‘lives on his mouth’ because his job is to persuade you that THIS is the best property for you and to ‘overcome objections’ by convincing you that whatever this property lacks is un-important even if it is on your ‘needs list’ and the things that this property has are valuable even if you don’t need them.

A Buyer Agent  is essentially a Marketer who ‘lives on his ears’ by listening carefully to what you need. He has no vested interest in selling any particular property, only in finding the property that best meets your requirements and your budget.   
      
A good Buyer Agent won’t be overly enthusiastic about any property that doesn’t meet 100% of specifications. He should not only confirm the goods points that meet your specs but also point out any shortfalls against your needs and preferences.

How long have you been buying real estate in the area that I prefer?

Someone who has worked with area buyers for many years will know more of the important background data that they need in order to give sound advice about the area.

How much of your purchasing activity is in the type of real estate that I prefer ?

Someone who deals mainly in detached homes will not know in detail how the various Condo developments compare to one another ; someone whose background is mainly Residential will not be as familiar with Businesses or Commercial properties ; someone who deals mainly with “owner-occupants” will not know all the current issues affecting Rental property investments.

How do you prepare information about relevant property choices for me ahead of time?

Your Realtor should do this for you based on your criteria so that you have a steady flow of relevant current information.

What is the process when we find a suitable property?

A good Buyer Agent should be able to clearly summarize every step of the Offer, Negotiation, Sign-Back , Acceptance, Waiver and Completion process with samples of all the documents that will be signed and explanation of any areas that are new to you.

 It is much better to review this slowly and calmly ahead of time rather than try to absorb too much at one time and feel rushed when the right property has been identified.

Do you help me with financing options?

Your Buyer Agent should be able to tell you the best interest rates both fixed and variable that he is currently hearing from the Mortgage Brokers that he deals with. He should not ‘push’ a particular Lender. (If he does, ask if they pay him referral fees!)

 I would advise you to talk to one Mortgage Broker of your choice and then to your own Bank . If your Credit is good you will not normally pay a fee to the Mortgage Broker as they are commissioned by the Lenders. The Mortgage Broker will run one Credit Application then use it to get a Rate Comparison from various Lenders and will advise you of the best  available based on your particular situation. With this information in hand you can then see if your own Bank will match it. If so you may prefer to deal through your own Bank. However, if the Bank elects not match it and you use the Mortgage Broker then when you go to your Bank for a Line of Credit or Loan etc they will not be able to whine that they never had the opportunity on your Mortgage.

The reason for only using one Mortgage Broker is that each new Credit Check can hurt your Credit Rating so using 3 or 4 makes it look as though you are applying for a lot more credit. Also the 2nd and 3rd one will each see that the 1st one has already checked on you so they will not put much effort into your needs.

Your Buyer Agent can show you how much of your Income a Lender will allow for Housing expenses and what is included in them ( it varies for houses versus condos ) and for Total Debt Service. If you prefer not to share your income details, no problem, the information can be provided as a formula for you to work out yourself. However, since your Buyer Agent is going to invest substantial time in your property search it is important that you are able to confirm how much you are prepared to place as a down payment and how much mortgage your pre-approval will cover.

What about other Professional Services ?

Your Buyer Agent can advise you of local Real Estate Solicitors, Moving Companies, Locksmiths, Alarm Services, Insurers  and Home Improvement companies etc, but again should not ‘push’ any particular firm and must disclose in writing any referral fees or commissions that he receives for doing so.

It is a matter of individual choice but I refuse all offers of referral fees and only provide names of service providers when specifically requested by the buyer.

How will you negotiate the Best Price ?

Your Buyer Agent should be able to clearly explain the different strategies that will be employed according to :

• The gap between List Price and Current Market Value
• Market Balance ( Number of Active Buyers versus Number of Active Sellers) for this area and type
• Time of Year and Market Price Trend
• Level of Interest and Likelihood of Competitive Offers for this particular property
• Motivation of Seller and Pricing History of Listing Brokerage
• Comparative value of this property versus others under consideration
• How Strong are the ‘non-price’ aspects of the offer