What’s the difference between being a customer and a client in a real estate transaction? It might seem like a simple matter of word choice, but there’s quite a bit more to it!
When it comes time to buy a home, you want to be a client. Here’s why.
The Hard Way to Buy a Home: As a “Customer”
Who represents whom? To find a home, buyers usually either look on the internet, in the newspaper, see a sign, or drive around neighbourhoods.
Buyers will quite often simply call the Realtor whose name is on the sign or in the ad. In most cases, the Realtor you are dealing with is the agent of the seller and is legally obliged to get the best price and terms for their client (the seller), not you the customer (the buyer).
The average buyer is not really equipped to come up against a highly trained and experienced real estate salesperson.
Buyers usually make a few telephone calls on newspaper ads or signs and eventually make contact with a salesperson that will show them properties. Although these Realtors may indeed be quite honest, they still owe their allegiance to the seller unless otherwise disclosed in a written agreement.
The salesperson is motivated to sell the buyer a property as quickly as possible. Why? Because they know that the buyer is not obligated to them and that at any moment they could lose the buyer to another Realtor.
No wonder that the more time the salesperson spends with the buyer, the more aggressive they get. That is what selling is all about. Salespeople don’t get paid unless they can convince their customer to buy a particular listing.
So much the better for the salesperson if the listing is one of their own.
The Easy Way: As a “Client”
What’s the difference? As a client, have your own loyal Realtor to represent you. When you hire your own Realtor and form a professional relationship, that Realtor can spend the time and effort necessary to truly learn and understand what your wants and needs are.
Your Realtor is better equipped to search out properties that more closely meet your requirements, thereby saving you considerable aggravation and money.
In addition, your Realtor is better able to advise you about any negative factors as well as the positive points of a property that you may be considering. He or she is on YOUR side!
Every action that is recommended or taken is to put you in the very best position and give you the best advantage. An experienced Buyers Agent, representing you, is free to advise you on the best ways to negotiate, which can save you money, and will protect and promote your interests before, during and after the transaction!!
How much does it cost?
After hearing about all the benefits of being a Client, you would expect to pay a premium fee to your Realtor.
Homebuyers are often surprised to find out that using the services of a Buyers Agent does not increase their costs. In fact, most buyers find that they actually save thousands of dollars in real estate costs.
Our compensation comes from the proceeds of the transaction itself, unless you choose otherwise. This means that the buyer does not bring any extra money to the closing.
Your Realtor is On Your Side
The most important difference between a “customer” and a “client” is that a client receives ADVICE from a realtor. Realtors cannot legally give advice to a customer… this is reserved for buyers or sellers who have a contractual relationship with the Realtor.
That means that only buyer clients can get advice on prices of homes they viewed, guidance on how to structure an offer in their own best interest, as well as many, many other questions and concerns that need to be addressed.
Being just a customer is not an advantageous position to find yourself in, is it?
So, do not be confused that the friendly real estate salesperson driving you around showing you homes is automatically on your side.
Make no mistake, unless you have a written agency agreement with that salesperson, the real estate act and the law of agency oblige them to act in the best interests of the seller, not you!
If you choose to disregard this opinion and be sold by the seller’s agent, “Let the Buyer Be Aware”!
To speak to our team about the home buying process call 519-377-7627 today.
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