I've been asked for a while to write something on my experience with real estate agents, so I figured that now would be as good a time as any. It also appears that Casey Serin has written his own post about his experiences with real estate agents, which might be worth a read.

I'll start by saying that real estate agents are much like lawyers, who are much like everybody else. There will be some that you get along with, and others who you probably won't. Just as I've stated with lawyers, price shouldn't be your only factor. Different agents will offer different services. If you have the time to do a lot of the marketing yourself, you can consider an agent on flat rate commission. But some agents I have spoken to have said that with special deals, they can often give vendors a better rate than agents on flat rate commission and give better prices.

Unless both parties are sophisticated, it's easier for the lawyers to deal with agents. Usually they can assist on non-title related matters, which helps both buyers and sellers. Going through the lawyers isn't always the best and most direct way to solve some issues (i.e. arranging for inspections, measurements, etc.).

At the same time, some agents can make the closing of a transaction more difficult. I've had several situations where the agents, both real estate and mortgage, miscalculated the amount of closing costs, and then attempted to blame the lawyers for it. In our more recent cases, a purchasing agent did not factor in the Land Transfer Tax and a mortgage agent did not consider the application fee. Another agent scheduled a closing during the Christmas holidays and told the client that it might close earlier (in the combined 42 years of experience that myself and my staff hold, we have technically never had a purchase close early).

It's worth noting that if agents insist on giving advice on the legalities of buying or selling real estate, it could be construed as professional advice and they will be held liable for any incorrect advice given. For example, if an agent representing a purchaser looking for commercial property tells his/her client that the property can be re-zoned for commercial use, s/he can be held liable if the zoning cannot be changed.

As I've stated before, it's best to consult the proper professionals for the proper advice. Just as you wouldn't go to your dentist for brain surgery, you shouldn't be asking your real estate agent for legal advice.

        

 

What did you think of this article?

Liked
Disliked
No Opinion