The standard Buyer Agreement you sign to "hire" your Buyer Agent contains a condition that says you may be faced with paying your agent for the purchase of your home. Here are the typical situations where this occurs:
1.ReSale Homes
If you buy from a MLS listing where the seller is paying less than the commission rate the Buyer Agent has written into the Buyer Agreement for his/her fees. You are expected to pay the difference.
Example:
Buyer Agreement says Buyer agent fee is 2.5% paid by the seller. Seller is only willing to pay 2%. You pay the difference of 0.5%. On a $300,000, that is $1,500 plus GST. You can decide not to buy the house or your agent may waive this payment.
2. NEW Homes
If you decide to buy a NEW house from a builder who does not pay for outside buyer agents bringing buyers. Again, you would be expected to pay your buyer agent to buy this new home. Most builders have a "broker protected" policy that says that they pay and that the price is the same whether you use a buyer agent or not.
Why take any chances?
My "Never Pay a Cent" Buyer Guarantee takes the worry out of your home purchase. My professional policy with my buyer clients is that they NEVER pay for my services. If I end up making not a cent I look to their good will to use my services again in the future and/or refer me to their friends. That's my policy. Why not be my client and not worry about surprises.
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