Sasha Dear

In real estate, there are different forms of agency relationships. Before an agency is established in writing, an agency relationship may be established by the actions of the individual parties. If it walks like a duck and talks like a duck it might be legally defined as a duck, but usually, any relationship before a signed agreement is more likely to be classed a "customer relationship." A customer relationship is generally defined as the agent owing a duty of honesty and reasonable performance, but is not under contract to perform as an agent. All agency agreements define the specific performance required of the agent, how the agent is to be compensated for that performance and the responsibilities of all parties. The different kinds of written agency that are available are:

1. Seller's Agent
When a real estate company is a "seller's agent," it must do what is best for the seller of a property. A written contract, called a listing agreement, establishes seller agency. It also explains services the company will provide, establishes a fee arrangement for the Realtor's services and specifies what obligations a seller may have. A seller that enters into a non MLS Exclusive Listing Agreement has great flexibility in the terms and conditions of the contract. A seller entering into a MLS Listing Agreement has somewhat more limited flexibility being required to conform to the standardized rules and regulations of the MLS system. A seller's agent must tell the seller anything known about a buyer. For instance, if a seller's agent knows a buyer is willing to offer more for a property, that information must be shared with the seller. Confidences a seller shares with a seller's agent must be kept confidential from potential buyers and others. Although confidential information about the seller cannot be discussed, a buyer working with a seller's agent can expect fair and honest service from the seller's agent and disclosure of pertinent information about the property.

2. Buyer's Agent
A real estate company acting as a "buyer's agent" must do what is best for the buyer. A written contract, called a Buyer Agency Agreement, establishes buyer agency. It explains services the company will provide, establishes a fee arrangement for the Realtor's services and specifies what obligations a buyer may have. Typically, buyers will be obliged to work exclusively with that company for a period of time. The buyer agency contract is a contract between an agent and a client and is usually based on the Ontario Real Estate Association's Buyer Agency Agreement. This contract can be modified by written agreement of both parties to their satisfaction. There are no MLS requirements for buyer contracts as there is no Buyer MLS system in place at this time. Confidences a buyer shares with the buyer's agent must be kept confidential. Although confidential information about the buyer cannot be disclosed, a seller working with a buyer's agent can expect to be treated fairly and honestly.

3. Dual Agent
Occasionally a real estate company will be the agent of both the buyer and the seller. The buyer and seller must consent to this arrangement in their Listing and Buyer Agency Agreements. Under this "dual agency" arrangement, the company must do what is best for both the buyer and the seller. Since the company's loyalty is divided between the buyer and the seller who have conflicting interests, it is absolutely essential that a dual agency relationship be established in a written Agency Agreement. This agreement specifically describes the rights and duties of everyone involved and any limitations to those rights and duties. Current legislation in Ontario deems all sales representatives and associate brokers working for one brokerage company, no matter how small or large, to be the same agency. This automatically puts all buyers under contract with any representative from that company, who are interested in any of that companies' listings, in a Dual Agency situation for those listings.

Who's working for you?
It is important that you understand who the Realtor is working for. For example, both the seller and the buyer may have their own agent which means they each have a Realtor who is working for them. Or, some buyers choose to contact the seller's agent directly. Under this arrangement the Realtor is working for the seller, and must do what is best for the seller, but still may provide valuable services to the buyer. If the seller and the buyer have the same agent, this is dual agency and the Realtor is working for both the seller and the buyer.

A Realtor working with a buyer may even be a "sub-agent" of the seller. Under sub-agency, both the listing agent and the co-operating agent must do what is best for the seller even though the sub-agent may provide many valuable services to the buyer. Sub agency is created when a buyer chooses not to make a contract with a buyer's agent and indicates in writing that they would prefer the agent they are dealing with to be the agent of the vendor and for them (the buyer) to have ‘customer status" only with the agent they are dealing with.

Code of Ethics
Realtors believe it is important that the people they work with understand their agency relationship. That's why agency disclosure is included in a self-imposed Code of Ethics which is administered by the Real Estate Council of Ontario. The Code requires Realtors to disclose in writing the nature of the services they are providing, and encourages Realtors to obtain written acknowledgement of that disclosure. The Code also requires Realtors to enter into a written agency agreement with any sellers or buyers they are representing.

Realtors are governed by the legal concept of "agency." An agent is legally obligated to look after the best interests of the person he or she is working for. The agent must be loyal to that person. A real estate company may be your agent - if you have clearly established an agency relationship with that Realtor. But often, you may assume such an obligation exists when it does not. Realtors believe it is important that the people they work with understand when an agency relationship exists and when it does not -- and understand what it means.

Courtesy of Royal LePage Canada

Go to www.sashadear.ca for more useful information

Have you ever simply wished for a change in lifestyle? We did, and within 2 months we made it happen!

We lived in a typical sub-division home in Barrie Ontario, and dreamed of living out of town, in a newer home with acerage. We found a great house nestled in 16 acres of forested land. Ideal for our german shepard!

It is amazing how we turned our dream into a reality, and urge anyone out there to at least try to do the same. With little or no cost, like us, you could have the lifestyle that you too have been dreaming of!

Contact me if you want to know more about how we achieved our dream in as little as 2 months, or if you have any other real estate questions!

The following information compares the Barrie residential market january 1st 2009 - march 18th 2009 to the same time period in 2008.

2009 home sales = 322 with a highest sale value of $392,000

2008 home sales = 471 with a highest sale value of $510,000

The number of home sales has dropped considerably, and the higher value homes have not been sold.

If you would like this information, or information on your area outside of Barrie emailed to you on a regular basis then feel free to contact me.

With all the reports and speculation about the housing market across Canada, it is no wonder that people are very concerned about the value of their homes. If you are thinking of selling, then now is still a good time. Consumer confidence may be at an all time low, so there are certainly LESS sales this year, but prices have NOT dropped.

Here are the facts:

• Number of home sales in Barrie 2007 = 3253
• Number of home sales in Barrie 2008 = 2653

• Average sales price in Barrie 2007 = $245,596
• Average sales price in Barrie 2008 = $252,039

The number of homes sold has dropped by 18.5% compared to last year.

What you have seen is a reduction in the asking prices of many homes. They may have been priced according to previous years value increases, and have now (or will) adjust their asking prices to conform to today's market.There has however still been an increase in the average house prices. This 2.5% increase may well be lower than previous years, but still reassuring that Barrie property value is not in the negative.

What is important, is to recognize that a more competitive approach to home selling is required. With less buyers out there, sellers need to make their homes more desirable to the buyer, and price correctly. Ask your Real Estate Representative how this is achieved.

Information taken from The Barrie and District Real Estate Board. 01/01/07 to 12/17/07 and 01/01/08 to 12/17/08

With so many homes on the market and so few buyers, sellers have to adjust their mind-set and become more competitive.

Buyers are like gold-dust, so when you know they are booked to view your property you should do everything you can to make your home more appealing to them than others.

If your Real Estate Representative suggests home staging, or a little de-cluttering, or perhaps just a good clean up, then it would be wise to follow this advice. Yes buyers are now in a position to be very choosey and picky, and tend to notice the slightest thing not up to par.

There is 'work' involved in selling a home, and some of it has to come from the seller. Here are a few points to think about:

• They way in which you live in your home is personal. It does not reflect how a buyer will live in that same home.
• You have a large amount of emotional value built up in the home. Buyers do not. They see it at face value.
• Your Real Estate Representative is the good guy! We know what we are doing and view selling your home as strictly business. A business that has to suceed or we do not get paid.

So it is very important, as a seller, to listen to constructive critisism with regards to what is working for you and what is not.

Have trust in your Real estate Representative that they know what it takes to sell your home.