Trade Up Mistakes

Six Inside Strategies to Avoid Trade Up Mistakes

Secrets to Make Your Local Move a Success

Making a local move? Usually that means selling one home and buying another. Keep in mind, Murphy's Law is alive and well. If something can go wrong, it probably will unless you know the secret to a successful move.

The secret to making it all come together in today's market is coordination. You need to know what comes first, second, third. And you need to know how to proceed if the reality of selling and buying doesn't quite follow your planned sequence.

Here are six inside tricks of the trade to help you juggle all the pieces of a local move:

1. Get all the facts early: We can help you gather the critical information you need. Call us first, when you are just beginning to think about making a local move. We'll determine how much house your money will buy in today's market so you can move up comfortably. We can even scout the market together for a selection of homes in your chosen price range to see what is available. We'll make a list of your likely home needs for the next few years so you are sure to buy a home that meets your needs. Don't look for a house so big that it causes cash flow problems, or so small you outgrow it in a year or two.
2. Make a game plan: Together we'll plot the sequence of selling and buying events that lead up to the move. We'll also work up an aggressive marketing plan to sell your present home quickly for the best possible price. You should begin fixing up and making pre-sale improvements, and have the work completed before we put your house on the market. If cash is short, look into an equity loan that's repaid at closing.
3. Sell first: In most cases, it's better to sell your present home before signing a contract to buy. Then you are not pressured to accept a below-market offer just to meet a purchase deadline. (Plus, you can buy with no strings attached.) When you do get a tempting offer, you may consider putting a contingency clause in the sale contract that gives you a reasonable time to find a home to buy. If the selling market experiences a slowdown, you may consider renting your home and selling it later, especially if you are selling a smaller, starter home. Be sure to find out about tax rules if you choose this rental route.
4. Keep a lookout: While your present home is on the market, we'll help you shop for a lender and get pre-approved for financing so you have more bargaining power when you bid on a house. (Sellers love qualified buyers.) Then shop for suitable homes and be prepared to select your next home quickly once your present home sells.
5. Be flexible: Things may not go exactly according to plan, so be ready to make changes as needed. If you don't find the right home in the first neighbourhood you look at, look in a second community, for example. Consider moving sooner than your original time line or later.
   
   If you buy before you sell, you may need to take out a "bridge" or "swing loan" against the equity in your old house to cover the downpayment and closing costs for your new one. Or you may need to take short-term tenants to cover expenses until you sell.
   
   If you sell before you buy, sometimes you can rent back the property for a few days or weeks if closing on the new home is delayed.
6. Coordinate closings: With two transactions, the chance of miscommunication goes up exponentially. There may be 15 to 30 entities involved in the transactions - appraisers, loan officers, underwriters, pest inspectors, home inspectors, etc. The transactions may be further complicated if 3, 4 or 5 families are stacked up like dominoes so that a hitch with one transaction affects all their plans.
   
   The fewer people involved in coordinating your closings, the more efficient the process. Experience shows our clients enjoy the smoothest local moves when we work on both their sale and purchase.
   
   We'll help you get ready for both closings by coordinating all the details for your sale and your purchase. Ideally we'll help you move directly from the old house to the new one. We'll keep you informed at every step like when the appraiser comes to each house, how your loan processing is progressing, etc.

Together we'll do our best to help synchronize your move.

Insider Bonus Strategy #7

Check Out Short-Term Housing Solutions

Some moves are harder to coordinate than others: Sometimes buyers make a great offer so they can move in sooner than the sellers plan, or sometimes the sellers are buying a home under construction that is delayed beyond the original move-in date. If these situations arise, you'll want to investigate money-saving options. Sellers often resort to making an interim, or temporary move.

If you have to move out before your new home is ready, try to rent a furnished apartment, house or extended-stay hotel, and put all but the barest necessities into "transit" storage. This saves the hassle and expense of moving twice.

Ask the moving company to place your goods into a container for storage and eventual delivery. You'll save on labour costs and reduce wear and tear on furniture. Or consider moving yourself and using a self-storage rental unit in the interim.

If you don't have to move out, but need to proceed with closing because of loan commitment deadlines, you may be able to rent your home back from the buyer until your new home is ready.

Empty Nester

How to Sell the Place you Call Home

When Smaller is Sweeter

How To Take The Money and Run

Your house is quiet except for the hum of the refrigerator or the voices from the TV. The rooms are filled with pictures and memories, but the children have grown and gone. You spend hours each week cleaning rooms you never use.

Are you an "empty nester" who needs a house for the future? Is it time to downsize or to move into another home more suitable for your retirement years? Here are some tell-tale signs:

• Your current home is too large for your lifestyle. Rather than close off the extra rooms or rent out the excess space, you may opt to move to a smaller home.
• You are retired and your income is lower than it was during your prime working years. You may want or need to sell your current home and move to one with a smaller mortgage payment or less upkeep. Maybe you could live more comfortably in a lower cost-of-living area. If you have loaded up a home equity loan, selling the home could give you welcome cash to eliminate those payments.
• As you approach your golden years, your wish is to have a home with few, if any, stairs, or one which could be easily converted to be handicap-accessible if the need arises.
• You prefer a location where the weather is more to your year-round liking and where there are activities you like - golf, tennis, boating, or socializing with seniors - during your leisure time.
• There is no capital gains tax on the sale of your principal residence. The profit on the sale of your home is tax free, which can provide you with an additional nestegg amount to use for your pleasure and leisure.

Getting it Sold

Once you have decided to sell and move, take a critical look at your current home. Even the best-maintained homes begin to show age. Before you list your home for sale, be sure it's in "move-in" condition. Make needed repairs and replacements so the house will show at its best.

Remember, homes that sell fastest and for top dollar show like a model home and are merchandised like a model, too. How does your home compare with other homes for sale, including new homes? Do you want to undergo major renovations, or would you prefer to make price concessions to help your home compete?

Here are some specific questions to ask yourself:

• Are kitchen appliances up to date and in good working order? Does the kitchen have popular features like a microwave, and island?
• Up-to-date homes often have a master bedroom suite. Does yours? Does the master bathroom have a spa or soaking tub or dual-shower heads?
• Do you have a home office? Is telephone wiring adequate to support and office phone, computer modem, fax machine?
• Have you built any additions - a deck, patio, carport, sunroom - without first obtaining a building permit or without passing inspection?
• Do carpets and tile need to be replaced? Will a professional cleaning make them look like new?
• What do the walls look like? Do they suffer from puppy-bite or kitty-scratch? Should old, tired wallpaper be removed? Do walls and woodwork need repainting?
• Can you make closets and counters look larger? Are there items you can pack away and do without until after you move?
• Are shrubs and trees neat and does the yard look well-kept and attractive?
• How does you home compare to others currently for sale now? What can you do to make it say, "Buy me!"

Price is one answer. If you've owned your home for years, chances are good you've got some serious equity. Perhaps you can afford to be flexible on price in order to get it sold. After all, to get the best possible sales today, a house must be in tip-top condition in every way: price, condition, terms, and exposure. That's where we come in. Give us a call.

How You Know it's Time to Move

Reason #10: When you first bought the house, you were out in the country, but now that same house is part of the city scene.

Reason #9: You can't get anything repaired because "they stopped making those parts years ago."

Reason #8: The swing set out in the backyard has grown roots.

Reason #7: The plumber's phone number is on your speed dial.

Reason #6: You're on a first-name basis with the handyman.

Reason #5: The children's rooms have all been turned into guest bedrooms.

Reason #4: The newspaper lining the guest room dresser is dated July 4th, 1976.

Reason #3: You have to move the furniture to see the carpet's original colour.

Reason #2: You can't do anything to the exterior of your home without getting approval from the "Board of Historic Places".

Reason #1: You haven't visited half the house in the last six months.

How to Avoid the 10 Biggest Selling Mistakes

If you're serious about selling your house, it's critical - before you sign anything - to know how to successfully sell in today's market. The secret sounds so simple. (Maybe that's part of the problem!)

To beat the competition today, you simply must avoid the mistakes other sellers are most likely to make.

Then you'll sell faster and get the best price, too!

We'll Work Together

Let us help you sell your house without a mishap. Working together, we'll avoid the common - and not-so-common - mistakes sellers often make. We can also advise you on the purchase of a new home. Please feel free to call us with all your real estate questions. Phone 780-406-0099 or Toll Free .

10 Biggest Selling Mistakes & How to Avoid Them

1. Pricing too high can be as bad as pricing too low If the listing price is too high, you'll miss out on a percentage of buyers looking in the price range where your home should be. This is the flaw in thinking that you'll always have the opportunity to accept a lower offer. Chances are the offers won't even come in, because the buyers who would be most interested in your home have been scared off by the price and aren't even taking the time to look. By the time the price is corrected, you've already lost exposure to a large group of potential buyers. The listing price becomes even trickier to set when prices are quickly rising or falling. It's critical to be aware of where and how fast the market is moving - both when setting the price and when negotiating an offer. As a professional real estate consultant it is my business to always be in touch with market trends - often even to a greater extent than appraisers, who typically focus on what a property is worth if sold as-is, right now.
2. Procrastination on fix-ups You want to make your home more marketable to maximize return (or minimize loss) and speed up the sale process. Most buyers are looking for an inviting home in move-in condition. Buyers who are willing to tackle the repairs after moving in automatically subtract the cost of needed fix-ups from the price they offer. Either way, you save nothing by putting off fix-ups and likely slow the sale of your house.
3. Drive by appeal Most buyers today will do a drive by first. Your house will have about thirty seconds to make a good first impression. Spruce up the view of the house by cutting the lawns, trim shrubs and lawns, weed and edge gardens, pick up any litter, repairing or resurfacing a cracked driveway or sidewalk; clear walk and driveway of leaves, repair gutters and eaves, and touch up exterior paint. Add some "buy me" appeal by adding potted flowers out front, a wreath on the door, brass outdoor lighting fixtures, brass street numbers and a pleasing welcome mat.
4. Inside appeal When the buyer walks in the front door you have 60 seconds to make that second impression, "could I live in this house?" A clean, bright dcor is what buyers want. A few dollars spent on painting - either because the existing paint is in bad shape or is an unusual color; replacing carpets - again because of age, color or style; refacing kitchen cabinets; bathrooms must be spice and span clean, repair or replace old toilets, sinks, tubs, etc. While spending several thousand dollars on your home right before you sell it might not sound very appealing, it's not uncommon for the right work to more than pay for itself in a higher selling price and shorter marketing time. My experience of all the homes in the area can assist you with what improvements will make your home more marketable in comparison to similar properties that are now - or recently have been - on the market in your area.
5. Over doing it. Spending too much on remodeling projects just drains money out of your pocket. If your improvements push your home's value more than 20% over the average neighboring home values, don't expect to recoup the entire cost. My experience of the homes in the entire area can assist you with what major projects will make you're home more marketable and allow you to recoup the cost. Some major projects like replacing a roof, up-grading windows, redoing the siding should be done if they are needed or if your home is the oldest looking in the neighborhood.
6. Uncreative Financing. To have the buyer meet your asking price you must be prepared to offer some flexibility in financing. Consider offering seller financing, paying closing costs, including a one-year warranty on all appliances, one-year garden maintenance or other irresistible buyer incentives. My knowledge of what other homes in the area are being offered for will help you offer incentives that will cause your home to sell fast.
7. Going it ALONE You go to a Doctor for advice when something seems wrong with your body. Your take your car to a mechanic. You go to a Lawyer for legal advice. You call a specialist when your computer fails. Should you call a Professional Real Estate Consultant when you wish to sell your biggest asset? Without a professional advisor, you probably won't sell. Even if you do sell, surveys show self-sellers often net less from the sale than sellers who use a real estate agent.
8. Why are you hanging around? The presence of homeowners and/or family make the buyer feel like an intruder. They feel embarrassed to look in closets and drawers. They need to get the feeling of "this is home". As your real estate agent I'm charged with the responsibility of looking after your major asset when holding open houses or show prospective buyers through your home.
9. My terms or no sale! You must approach negotiations in a positive frame of mind, not as an adversary of the buyer. After all, you both want the same thing - a sale. As your real estate agent leave most of the discussion of price, terms, possession and other conditions up to me. I'll make it my business to get you the best deal possible. Negotiations is what I do every day.
10. No action when the iron is hot! One of the most important moves you can make is to reply immediately to an offer. When buyers make an offer they are, right then, in the mood to buy. Moods, as you know, change, and you don't want to lose a sale because you stall in replying.

Avoid Costly Mistakes

How to Avoid Costly Housing Mistakes During and After Divorce

Divorce is rarely easy and often means a lot of difficult decisions. One of the most important decisions is what to do about your housing.

That's where we can help. Often clients tell us what a comfort it is simply to get straightforward specific information and answers. Once they know how a divorce affects their mortgage, their house and taxes; critical decisions are easier. As a neutral third party we help them make logical, rather than emotional, decisions.

Probably the first decision is whether you want to continue living in the house. Will that familiar house bring you comfort and emotional security? Or are you ready to sell and move to a new place that offers a new start? Only you can answer those questions.

Just as important, you must determine what you can afford. Can you manage the old house on your new budget? Is refinancing possible? Or, is it better to sell and buy? How much house can you buy on your new budget?

Again, we make it our business to help you answer these questions. Our council and market information can help you avoid costly mistakes and smooth your housing decisions during transition.

Straight Talk About Your Housing Choices

Three Basic Options most divorced homeowners face

1. Sell the house and split the proceeds Our appraisers can analyze your home's market value, then estimate, after selling expenses - how much the home sale will net.
   
   Be careful not to assume there will be a 50/50 split of the sale proceeds. Your share will depend on the divorce settlement.
2. Buy out your spouse's share of the home The good news is your lender cannot "call the loan" when a property is transferred from one spouse to another due to divorce. The lender however, rarely if ever relieves the departing spouse of the obligations of the original mortgage contract, even though the spouse no longer owns part of the house. Often the key to this option is refinancing. Crunching your income numbers is the answer, and we can help. Remember, if you used two incomes to qualify for the original loan, refinancing on you own can be a stretch. If you can afford to keep up the mortgage payments, upkeep costs and also buy out your spouse, this may work.
   
   If you are the spouse who is bought out, you have an opportunity to start over in a new place, possibly with cash in hand. But if the old loan is not refinanced, nearly all lenders will continue to insist that both co-signers are still liable for the mortgage. This liability may make it difficult for you to qualify for a new mortgage when you go to buy another home, even though the property settlement may say you are not responsible for payments.
3. Retain joint ownership of the house for now, even though only one partner occupies it. This option leaves things pretty much alone for the present, and can work if both co-owners can co-operate together after the divorce - which poses its own challenges.

If you Decide To Sell

It's important to consider the benefits of an experienced realtor when selling a house as part of a divorce settlement. Both spouses need to co-operate to get the house sold, and that is where it is especially useful to have professionals co-ordinating preparations for sale as well as contract negotiations.

When a contract for sale is presented, both spouses should be available so both can participate in the negotiations and sign the purchase contract. If a joint meeting is impractical, a conference call may be necessary. We can refer you to professionals that will handle the settlement details to bring about a quick and worry-free sale.

What Can You Buy

Of course, if you decide to sell the family home you'll want to know what you can afford. You may be pleasantly surprised!

First we'll consider the equity you'll receive from the sale of your old house. Then we will take into account your income from all sources (including suite rent and support payments, subject to certain conditions). Next we calculate the payment your new budget will allow. Then we will consider the interest rate for the term that seems to best suit your needs and calculate the amount of mortgage that can be serviced with your budget.

Keep in mind that we are in the business of knowing the lending policies of many lenders (institutional and private), and this knowledge allows us to analyze your situation effectively, and present you with a summary of what options are available to you.

Steer Clear of Tax Traps

Whether you decide to stay put or sell, there are tax implications to examine. Free Ride: In most situations the laws work in your favor regardless of what you do. There is no tax on gain from the sale of your principal residence.

Where one spouse continues to maintain an interest in the original family home while it is being lived in (rented or not) by the other, there may be tax consequences. In this case or in situations where the home is rented to a third party, you should consult with your tax advisor on income tax implications.

An Agent's Role

Straight Answers About an Agent's Role

"Seller's Agent? Buyer's Agent? ~ What Does All This Mean To Me As A Homebuyer Or Seller?"

As a homebuyer or seller, you and the real estate agent working with you share a common goal - to buy or sell a home. Real estate agents are professionally trained to accomplish that goal. Simply put, agents are matchmakers bringing buyers and sellers together.

You should understand right from the start what type of relationship exists between you and the agents you deal with. Real estate agents - brokers and sales associates - in most provinces are required by law to let consumers know whether they are representing the buyer or the seller.

Traditionally, real estate agents represented the seller. That was true whether the agent helped the homeowner market the home or the homebuyer find the right home. Agents were legally bound to represent the seller. Typically the seller paid both the listing agent and the agent who brought the buyer.

Today's real estate market has introduced new ways for real estate agents to work with buyers and sellers. Now consumers have choices. If you want to sell a home, you can engage a real estate agent who is a "seller's agent". If you want to buy a home, you can work with a "seller's agent", a subagent of the seller's agent, or in many areas you can engage a real estate agent as a "buyer's agent."

To help you understand your choices and their implications, this brief brochure answers many basic questions. For indepth answers to your specific situation, talk with a knowledgeable real estate professional and ask about local practices. Provincial laws vary and are constantly changing. Be sure you understand and are comfortable with the options involved when you engage the services of an agent.

Remember the goal of all real estate agents is the same - to help bring about the sale or purchase of a home. Expect to be treated with honesty regardless of agency relationship. Together buyer, seller, and agents get the job done.

Straight Answers About A Real Estate Agent's Role

Know The Players

To understand agency, it helps to first know the names of the players. A "broker" is a person who has passed a special exam to earn the designation and is licensed by the province. Typically a principal broker forms a real estate company and recruits real estate licensees (salespersons and associate brokers) to the company as associates (often called "agents"). Agency agreements are legally made between the client and the company, personified by the principal broker. The associates, or agents, represent the principal broker by working personally with the firm's clients and get some or all of the resulting brokerage commission.

Agent and Principal

Legally speaking, an agent is the person who represents and acts on behalf of another person, called the principal. The agent owes certain duties to the principal. These duties generally include care, confidentiality, full disclosure and accurate accounting, although some specifics may vary from province to province.

Seller's Agent

A real estate agent who is employed by and represents only the seller in a transaction is a "seller's agent". This agent is also known as a "listing agent", because the agent lists the home for sale and generally markets it through a Multiple Listing Service. The listing agreement serves as a contract between the seller and the agent, and spells out how the seller's agent will be paid. Responsibilities of a seller's agent include getting the highest purchase price and best terms possible for the seller.

A seller's agent can offer buyers a variety of services, including a diligent search to find the right home, an explanation of available financing, calculation of monthly payments and estimated settlement costs, etc. The seller's agent is expected to act honestly and in good faith and may also be required by provincial law to disclose to the buyer certain kinds of information about the property.

However, a seller's agent cannot divulge confidential information to the buyer that is not in the best interest of the seller, such as what price the seller will accept, or offer an opinion of the home's value.

In many instances, a subagent of a seller's agent produces a buyer for the home. Although the subagent is often first contacted by a potential buyer and works hard to help the buyer find the right home to purchase, the subagent - like the seller's agent - represents the seller throughout the transaction and is responsible for getting the best terms possible for the seller.

Buyer's Agent

A real estate agent who is employed by and represents only the buyer is a "buyer's agent". The agreement between the buyer and the buyer's agent serves as a contract between them and typically spells out the agent's duties and how the agent will be paid. The buyer's agent may be paid by the seller through a commission split with the listing agent or paid a sales commission by the buyer or by some other mutually agreed - upon formula. Some buyer's agents may also (or instead) charge the buyer a retainer or hourly fee for services. In addition to helping the buyer with the house-hunting process, the responsibilities of a buyer's agent - unlike those of the seller's agent or subagent - include representing the buyer's interests throughout, and working to negotiate the best price and terms for the buyer.

In-Company Situation

An "in-company situation" occurs when the potential buyer is working with an associate from the same real estate company that listed the home for sale. The solution to this situation goes by different names in different parts of the country - for instance, "designated representative", "transaction broker", "facilitator" or "disclosed dual agent".

Provincial statutes and common law determine how an "in-company situation" is handled. Your real estate professional can explain the alternatives to you. Keep in mind, however, a broker and associates must maintain the confidentiality of their clients. They cannot, for instance, without permission reveal to a buyer what lower price their seller would accept nor to a seller how much more their buyer is willing to pay.

In an "in-company situation", as in other agency relationships, the basic goals haven't changed: the seller wants to sell, the buyer wants to buy, and the agents want to help close the transaction.

Commonly - Asked Questions, Straight Answers For Buyers

How can a seller's agent or subagent help me and what can't they do?

A seller's agent or subagent can provide you, the buyer, with many important services. Here are a few: help you determine what price home you can afford and explain how different loans can stretch your buying power; search all homes in the Multiple Listing Service and show you those that you select as best meeting your needs; provide general information about homes, recent area sales if asked, neighbourhoods, and local lending institutions; prepare your sales contract and present it to the sellers; walk you through the homebuying process and keep in contact with lenders, inspectors, and sellers through settlement.

Since the seller's agent is required to share with the seller information you provide, you may want to keep certain financial and other confidential matters to yourself. Common sense should be your guide. For instance, you may not want to say you're willing to pay more than the price you're offering, or that you'd agree to pay more points or closing costs, or that you're especially motivated to buy.

Remember, the seller's agent can't offer an opinion of the property's condition, the value of improvements, any urgency the seller may be under to sell, and if the seller will accept a price below the asking price. The seller's agent assisting you also must respond to such questions as "What do you think I should offer?" and "What do you think the home is worth?" with the answer, "I can only quote the listed price." When it comes to price and terms at the negotiating table, you must be your own representative. The seller's agent will present your offer and bring back to you the signed contract, a rejection, or a counteroffer. You are free to respond as you see fit.

Should I be represented by a buyer's agent?

There is no simple answer. Some buyers want the help of an agent in whom they can confide. A buyer's agent can discuss relative advantages and disadvantages of a particular home, advise on how much to offer, evaluate improvements, and actively participate in negotiating favorable price and terms for the buyer.

Other buyers who are comfortable negotiating for themselves feel a seller's agent or subagent will give them all the assistance they need to find a home and close the transaction smoothly and successfully.

I know the seller's agent is paid by the seller, but who pays the buyer's agent? Compensation arrangements for buyer's agents vary. Surveys have shown buyer's agents generally receive a share of the commission paid from the sale proceeds. Many listing agreements between seller and seller's agent note whether the commission will be split between the seller's agent and buyer's agent or must be negotiated.

There are, however, other ways buyer's agents may be paid. Some buyer's agents collect a retainer fee from the buyer at the beginning, some charge by the hour, and some charge a flat fee or a combination. Often these fees are applied against any subsequent commission received by the buyer's agent. Your agreement with the buyer's agent should specify the details of compensation.

If the buyer's agent I use will split a commission based on the sales price, doesn't the buyer's agent have a conflict of interest when it comes to negotiating the lowest price for me? While theoretically this could be true, in practice buyer's agents would benefit only slightly by failing to help you negotiate the best price. For instance, for every $1,000 paid above the bottom price a seller would have accepted, the buyer's agent only receives a few dollars extra in commission. Most buyer's agents prefer to negotiate the lowest possible price and ultimately receive much more valuable referral business from satisfied buyers.

Some buyers and buyer's agents agree on a payment formula not tied to the sales price, such as a commission based on original asking price or a flat fee.

Can a buyer's agent show me all the homes for sale in the area?

In areas with a Multiple Listing Service, a buyer's agent generally can show buyers almost all available homes, including homes not in the Multiple Listing Service and homes for sale by owner. The listing agreement made between sellers and the seller's agent often specifies whether buyer's agents may show the home. Most sellers want their home made available to the largest possible audience of potential buyers. It is rare, but possible, that a seller may refuse to work with a buyer's agent.

A special in-company situation occurs when you want to see a home that your buyer's agent has listed for sale as a seller's agent, or one that is listed by another agent at the company of your buyer's agent. Provincial laws, individual company policies and local practices vary. Ask the agent whether and in what ways the company or agent might then modify the agency agreement with you if you wish to purchase a company listing.

Can a seller's agent show me all available homes?

In most provinces, the agent can show you any home available through the multiple Listing Service. That includes homes listed personally by the agent, homes listed by another agent in the same company, and homes listed by agents in other companies.

In areas without a Multiple Listing Service or where each real estate company shows only its own listings, both buyer's agents and seller's agents may be restricted to showing their own company listings.

Straight Answers For Sellers

I'm selling my home. Should I agree to let buyer's agents show my home?

Although only you can decide whether you want to permit buyer's agents to show your home, remember the greater exposure your home gets to qualified buyers, the more likely you are to sell it quickly and at the highest possible price. The majority of sellers and seller's agents let any agent help sell the home. Sellers typically don't care who brings a buyer or how the broker splits the commission as long as the house sells.

If a buyer is using a buyer's agent, do I have to pay the buyer's agent a commission? Practices vary by area. Check with your agent to learn about your choices. As the seller, generally you can indicate on the listing agreement whether the selling agent must split the commission you pay with the buyer's agent. Most sellers choose to work with a broker who splits the commission with a buyer's agent even though that agent does not represent the seller's interests. This, of course, maximizes the number of potential buyers for your home. Because the listing broker already is prepared to share the commission with a subagent who produces a buyer, most sellers don't mind when their broker instead shares the commission with a buyer's agent.

Can the seller's agent represent me in the sale of my home and then continue to represent me as a buyer's agent when I purchase my next home? If the seller's agent also works as a buyer's agent, the agent can go on to represent you as a buyer's agent - under a separate agreement - as you purchase another home provided both you and the agent agree to the representation.

How and when will I find out who an agent is working for?

Most provinces require real estate agents to disclose to buyers and sellers their agency relationship. The Canadian Real Estate Association supports disclosure laws requiring real estate agents "to provide timely, meaningful, written disclosure to consumers of all possible agency relationships available under provincial law and the most significant implications of choosing one type over another".

This "disclosure" should take place early, certainly before either a seller signs a listing agreement, a buyer is shown any properties, or the real estate agent is told any confidential information. The consumer usually signs a form acknowledging the agency disclosure.