FSBO PART 3- Representation
I recently sat down with a local Kitchener Waterloo real estate lawyer to discuss some of the problems he has been facing with the increase number of private deals that have not had the guidance of a professional realtor.
Even though the seller has decided to list their home privately this does not mean you have to purchase Kitchener Waterloo real estate without the professional help of a Realtor. In fact most FSBO’s are more than willing to co-operate with “Buyers Agents” because they are saving half the commission. In a typical commission structure the seller pays half the commission to the realtor that lists the property and half the commission is then offered to the realtor that brings the buyer. See table below to illustrate. You will see many FSBO’s list in the information section “buyers agents welcome”. This means that the sellers are willing to cooperate with buyers who want to have the security of being represented by a licensed real estate agent. So you can get professional advice at no extra cost to you. Even if the Seller is unwilling to compensate us, at Knight Homes we are still more than happy to assist existing clients with the transaction at no extra cost and we only ask that you pass our name along to friends and family.
Typical Real Estate Commission structure
Sellers Agent Buyers Agent
2.5% for listing the property 2.5% for bring the buyer
Total Of 5% commission paid by the seller.
You go to the dentist when you have a tooth ache, the doctor when you are sick, and you call an electrician for electrical issues so why not use a professional realtor to help you purchase the biggest investment of your life? It’s a Smart Move.
If you are seasoned home buyer and have been through the process dozens of times then you may be able to navigate the complexities of buying or selling your home on your own. But every transaction is different and there are things you need to know for each type of property, type of ownership and for different neighbourhoods.
Education is KEY, you are making a large investment and you need to know how the entire process works and what your responsibilities are along each step of the way.
As you can see lawyers are not going to simply replace the duties of a professional realtor. They are in most cases too busy to do the “hand holding” that is required. If you are not familiar with terms such as:
Then you are probably not educated enough to handle the purchase or sale of a property on your own without incurring large extra costs, expensive errors and time delaying mistakes.
Make the SMART MOVE and contact Knight Realty today to help you with your real estate needs.