{"id":43925,"date":"2023-07-26T15:06:31","date_gmt":"2023-07-26T15:06:31","guid":{"rendered":"https:\/\/hardbacon.ca\/non-classifiee\/real-estate-agents-what-you-need-to-know-to-shop-for-a-house\/"},"modified":"2026-08-25T09:13:27","modified_gmt":"2026-08-25T13:13:27","slug":"real-estate-agents-what-you-need-to-know-to-shop-for-a-house","status":"publish","type":"post","link":"https:\/\/hardbacon.ca\/en\/mortgage\/real-estate-agents-what-you-need-to-know-to-shop-for-a-house\/","title":{"rendered":"Real Estate Agents: What You Need to Know Before Hiring One To Shop For A House"},"content":{"rendered":"\n

If you conduct an informal survey of recent homebuyers, you\u2019ll likely hear two different things about their real estate agent. They\u2019ll generally answer with, \u201cMy agent was the best!\u201d or \u201cMy agent was terrible.\u201d Those two answers really show how important it is to find the right real estate agent. As a matter of fact, a great real estate agent can make your home dreams a reality or help you sell your current house for the best possible price. Obviously, a terrible one may not.<\/p>\n\n\n\n

Pros and cons of using a real estate agent in Canada<\/h2>\n\n\n\n

In Canada, you aren\u2019t required to work with a real estate agent for any part of the home buying or selling process. That doesn’t mean that it the best idea to go-it-alone. It\u2019s an advantage to have a real estate agent representing you as a buyer when you have better access to properties, gain market information like especially neighbourhood information, and have an expert on your side when it comes to negotiating a purchase and closing the deal.<\/p>\n\n\n\n

There is a lot of paperwork and legalese involved in buying a house, and it can be overwhelming and costly to try and navigate it without help. Plus, your agent has a duty to inform you of crucial information they receive about the house. You won\u2019t receive this if you aren\u2019t working with an agent.<\/p>\n\n\n\n

However, if you find yourself with a real estate agent that isn\u2019t a good fit for you, it can feel like a real disadvantage. This is a very close relationship filled with emotions and vulnerability. Sometimes there\u2019s a personality clash between buyers and their agents. Or, an agent may try to push a house on you that isn\u2019t a good fit. Some buyers feel like their agent wasn\u2019t an effective negotiator or didn\u2019t seem to be on their side.<\/p>\n\n\n\n

If you choose to use an agent, take the time to find one that\u2019s a good fit for you, and consider signing a Buyer Representation Agreement (BRA) with them. We will cover more on that coming up.<\/p>\n\n\n\n

How much does it cost to have a real estate agent?<\/h2>\n\n\n\n

Real estate agents get paid a commission when they are part of a sale. The commission is set by the agreement the seller has with their realtor, and the buyer\u2019s agent gets a portion of that commission. The percentage commission is agreed upon between the client and agent at the outset.<\/p>\n\n\n\n

In Canada, commissions usually range between 3% and 7% of the final sale price. This is split between the buying and selling agents. This varies a bit depending on where you live, and what the agent has negotiated with the seller when they listed the property.<\/p>\n\n\n\n

Although you don\u2019t pay anything upfront to have a real estate agent, the cost is part of the sale price. You either incorporate it into what you pay for your new place or what you deduct from your total when you sell your house. During the purchase negotiation process, there is technically room to negotiate your agent\u2019s commission, but this is not common practice.<\/p>\n\n\n\n

One more thing: if you are working independently as a buyer without an agent and you find a house you want to purchase, you can certainly try to negotiate a lower offer. Your leverage is that the seller\u2019s agent will not be splitting the commission with another agent. What you miss in terms of having your own agent, you may gain in a lower sale price.<\/p>\n\n\n\n

The search for a great real estate agent<\/h3>\n\n\n\n

You are serious about looking at properties. You might even be preapproved for a mortgage<\/a>. Before you start looking at homes, you need to look for a real estate agent. Let\u2019s start with types of real estate agents, also called realtors.<\/p>\n\n\n\n

First, there are residential real estate agents and commercial real estate agents. When you\u2019re looking for a home, you want a residential specialist. Unless you\u2019re from an area with very limited options, don\u2019t go for one who does both.<\/p>\n\n\n\n

Next, you want an agent who works for homebuyers, not just sellers. Again, this can be different if you\u2019re in a very small or low populated area. Then you may only have one or two realtors and they likely represent buyers and sellers.<\/p>\n\n\n\n

A buyer\u2019s agent specializes in working with people buying homes. They know all about what to look for in a home and how to negotiate in your best interests. They also know the other agents and what the market is like for homes in your area.<\/p>\n\n\n\n

Although it\u2019s unlikely that you\u2019ll come across an unlicensed individual promoting their services to homebuyers, it\u2019s important to make sure that your agent is licensed as a local real estate agent. The specific rules vary from province to province, but every province and territory in Canada requires that individuals pass a written exam before becoming a licensed real estate agent. You can look up your agent\u2019s license by province:<\/p>\n\n\n\n

British-Columbia<\/a>
Alberta<\/a>
Saskatchewan<\/a>
Manitoba<\/a>
Ontario<\/a>
Quebec<\/a>
Newfoundland and Labrador<\/a>
New Brunswick<\/a>
Yukon<\/a><\/p>\n\n\n\n