Agency Relationships

By law and industry licensing regulations, your Agent is responsible to and represents you in the decisions and negotiations that lead to this sale.  You’ll sign an acknowledgement stating that you understand this.

Often, however, the Agent you choose knows many possible buyers for your home – it stands to reason that this is a good thing for you. Perhaps as knowledge spreads throughout my RE/MAX office, another Agent there will bring in a buyer with an offer you’d like to accept. Either way, as your Agent, I and my broker are now in a dual agency position. We are now representing BOTH you and the buyer. You’ll then need to sign an acknowledgement that a dual agency situation is now in place.

Disclosure for both parties becomes a little different. The acknowledgement protects all parties from slipping into unintended situations, and clearly outlines the new disclosure responsibilities for both you and your Agent.

Dual Agency is a very common occurrence in an industry where nearly 20% of sales are done within an office or from an Agent’s own client base.  In such a case I still owe you, as my client, a fiduciary duty to work in your best interests. That duty includes honest disclosure of information, diligence, obedience, loyalty, confidentiality and complete accounting. What I cannot do, as Dual Agent, is to tell you what the buyer will likely accept in price, nor tell the buyer what you’ll likely settle for in the end, unless I’ve been given explicit instrutions to do so.

As mediator, I will still lead you both to smart decisions.

As Seller, you’re responsible for sending all enquiries about the home my way, and on acting in good faith and not obstructing any contract you  agree to.

What I Get Paid

The commission you pay is fixed as a percentage of the final sale price of the home. Legally, my Broker is selling your home, and I of course work for my Broker. My Broker is also responsible for paying out commission to whichever Broker brings in a buyer through their Agent. The commission coming from the proceeds on sale of your home is therefore split four ways.

From this now split commission, Agents personally pay absolutely all expenses as independent contractors; license and industry fees,  MLS fees, broker fees, advertising, client outreach, update courses, education and training, marketing materials, office equipment, car, gas and  other expenses, ….and of course what’s left over pays for our time. When you feel hesitant about the commission you’re paying, remember there’s not much left after all this division and subtraction even before Revenue Canada has a peek.

For these reasons, I don’t budge, or negotiate fees anymore than does your lawyer, accountant, or doctor. To do so would be to compromise the quality of the work I do together with the professional level of support, marketing, and optimal results I provide. Bundling everyone’s share, the commission I charge is 5%. With my track record, you come out ahead of others.