When you are preparing to sell your home, you will probably hire an agent to market your property to potential buyers. Often, successful marketing will draw potential buyers who wish to be represented by the same Realtor. This is referred to as Multiple Representation and the Agent must act in the best interests of both the buyer and the seller. This can cause problems as representing more than one party in the same deal is a challenging scenario in any situation but especially in real estate.
Multiple Representation occurs when a brokerage represents both the buyer and the seller (or more than one competing buyer) in the same transaction. Multiple Representation can become an issue as a brokerage’s loyalty is divided between both the buyer and the seller who obviously have opposing interests within a real estate transaction.
In cottage country, there are fewer Realtors than there are in the cities in southern Ontario. In some instances, small towns in Northern Ontario have only one Real Estate Agent. When this is the case, Multiple Representation becomes unavoidable.
In my opinion, if you are buying a property in cottage country, find a Realtor to represent you and only you. If you go ahead and try Multiple Representation, be aware that confidentiality becomes limited as the basic principle is that all information is shared as the Realtor must treat both the buyer and the seller clients equally and impartially.
To me, this is a clear conflict of interest. How can your Realtor be trying to get you, the buyer, the lowest possible price and the seller, the highest possible price? Many Realtors claim that they act with great integrity and insist they can give both sides their loyalty and confidentiality. This may be true. However, many Realtors will try to convince you that they will be impartial to both the buyer and the seller so they can make double the commission.
When you are purchasing a home or cottage, it is a large monetary investment. Make sure your interests are being represented completely. You never want to be in a situation where the loyalty of your Realtor is divided.
If you are thinking of purchasing a cottage or recreational home in Ontario’s Near North and are looking for a Realtor, please contact me directly for assistance.