Buying a House - Ground Rules

First, you do not need a Real Estate Agent in buying a home. All you really need is a lawyer to perform the property transaction work. However, if the seller has a Real Estate Agent, then there is a high chance you will want one, too. Houses for sale are easier to visit when you have Real Estate Agent. The Agent has access to opening the doors and letting you in.

A Real Estate Agent is suppose to act on your behalf to buy or sell the home. Both the buyer of the home and seller of the home will have their own Real Estate Agent called a Buyer's Agent and a Seller's Agent.

In Canada, each Real Estate Agent often gets an average of 2.5% (but sometimes lower) of the sold price of the home as commission for selling the house. Some Real Estate Agents provide cash back rewards. Canadian Real Estate Agents gets higher commission than anywhere else. In United States, their Real Estate Agents only get 1% of the commission and their homes are actually much cheaper. Even though Real Estate Agents are the least educated of the parties involved in the buying home transaction, they seem to be getting the biggest piece of the pie here in Canada.

Do not listen to mls.ca and their gimmicks on Real Estate Agents are ethical. (http://www.howrealtorshelp.ca/). Where do they get the idea any Real Estate Agent off the street is ethical. Their claim is based on these tests that they pass to become a Real Estate Agent. Agents passing a test does not meant hey are ethical. It only means they can remember enough to pass the test.

One would believe it should be the Real Estate Agent's job to help the buyer ensure the home is of value. Rightly so, many buyers depend on the Real Estate Agent to protect them and provide them advice and in my opinion, the ethical Real Estate Agent should do that. However, the true reality is that Real Estate Agents do not make money unless if the home is purchased. The reality is that the Real Estate Agent's salary is not truly dependent on giving you advice. The Real Estate Agent's job is to get the buyer to buy a home through them so they can get paid!

Accept the reality of the motivation behind servicing you and listen to their verbal explanation for servicing you. If they do not match, then they are lying and you should never work with people who lie to their clients.

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