KNOWLEDGE CAFÉ

It’s happened in many industries. You can purchase stocks through a full service brokerage, or through a discount brokerage. You can also book your trip with a travel agent, or directly with an airline. Many industries now offer a discount option. The benefits to consumers vary by industry. The real estate industry is not immune to innovation and the changing needs of consumers. However, there is always a price to pay when using any discount service provider. Would you trust your health to a discount doctor, or your legal matters to a discount lawyer? Then why would you use a discount real estate brokerage for one of your largest financial transactions?

My job as a real estate professional is to protect my clients interest. This includes drafting applicable clauses in Agreements of Purchase and Sale and explaining conditions to clients before they sign an offer. Depending on the type of property and situation, key conditions that I always recommend include inspection, financing, legal approval, sale of existing home, assignment, environmental, and tenant estoppel.

Did you know that real estate commissions are not typically paid by the buyers? Sellers generally distribute commissions to the agents. However, in some situations, such as sellers selling their own homes, sellers may not always pay the buyer agent’s commission. When signing a Buyer Representation Agreement with a REALTOR®, you may notice a section about what would happen if a seller does not pay the buyer agent’s commission. This section states that in those situations, the buyer will be responsible to pay the commission. However, if that happens, I will negotiate with the seller to collect a commission from them, and I will only ask the buyer to pay the commission as a last resort.