When I began my tenure, I was repeatedly asked the question, “Where are buyers coming from?” Being unable to answer the question, created the need for a solution that, I have to think, has been contemplated before.
Nowadays, it’s common practice for listing agents to refuse the buyer’s rep the opportunity to participate in the presentation. They insist that offers be faxed or emailed. In my opinion, that’s a mistake – a big one.
Buyers are backing out of deals – they bought but could not sell (at their price) their own home. In many cases, one sale leads to a chain of sales and that first deal can cause problems for four or more other sales up the line.
If the buyer cannot close, they will likely forfeit their deposit and be subject to a lawsuit from the seller, for the difference in the sale price if the seller now sells the property for a lower price than the buyer agreed to pay.
First-time buyers are doing their homework and making responsible financial decisions entering Canada’s housing market. They are well-educated, employed, and consulting with mortgage industry professionals.
Think about buyer agreements from your client’s perspective. If you were the buyer, how would you feel about signing something that doesn’t help you in any obvious way but does guarantee the sales rep gets paid?
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