Agent Representation- Part 2

Agent Representation


REALTORS® take the time to educate their clients on the market, represent their best interest on the purchase, provide information and guidance on what to expect or is needed for their purchase, select listings of homes for sale, make appointments that suit their clients time efficiently, provide market information on sale prices and also help with decision making to what their clients have told them is most important to their family.

A Buyer Agency agreement is used when working with Buyers to solidify a form of payment for their time and work provided to the client on their home purchase. (regardless of an MLS home, Builder Home or Private Seller) Because of changes to legislation for real estate in Manitoba, over 80% of agents use these agreements.

I typically do not use these agreements for various reasons.   Many of my clients have been referred to me but ask that a verbal commitment or assumed Buyer Agency is in place. I ask that our relationship is honest and respectful and when you see a home you need more information on, would like to visit or to write an offer, please call me to do this with you.  My number 1 goal is to have you completely happy with your home and the service I provide you throughout the entire process.


Many are concerned or not aware of how the payment/commission structure is based on a home purchase when working with an agent.Agents are paid by the sellers of the property. It is a set percentage or amount that is shared between the  agents and written in a Listing contract. This number does not change if there is just 1 agent involved, 2 agents or 3 agents.


MLS Listing

An MLS listing is a cooperative system. It is a home that is listed with an agent and the sellers have hired a REALTOR® to market and have the assistance of all Manitoba REALTORS® to help sell their home.

The listing agent represents the sellers and most Buyers have their own agent that has been working with them on their home search.

Home owners pay a “listing fee” (commission) which has been stated and signed on a Listing Agreement that will be shared between the agents for a finalized sale.   The agent has the home owners sign the Listing Agreement to pay a fee for sale that includes paying the cooperating agent(s) regardless if the offer is brought in by the listing agent or a Buyer agent.     (Ex. 6%. Total 3% to buyer agent, 3 % to Listing agent or full 6 % to listing agent)

As legislation has recently changed for the sale and purchase of real estate, this number is not changed if the agent “double ends” the deal (works with both buyer and seller) and is then paid the full 6%.

There is a misconception to the public that a reduced commission is paid to make the sale happen if a buyer chooses to work directly with the Listing agent and a buyer will then pay less on a home, as commission is less for the seller.

 Builder Purchase

Purchasing a home through a builder is a different process but still very important to have your own agent representing you as opposed to working directly with the Builders representative. There is also a set fee paid to the Buyer’s agent, as 80% of Buyers have their own agent and have signed a Buyer Agency agreement. The Builder covers this fee and does not add any additional cost to the Buyers purchase price. The breakdown on cost to build is no different in price if you have an agent or you don’t.

Builders usually offer a lower fixed payment to an outside agent, but it is still covering for the service the Buyer agent has provided to the Buyer through the entire process.


A Private Sale Seller or a “mere posting” has a much different view and reasoning for selling their home on their own and has decided that this is the best process for their situation. They have chosen to represent themselves on their sale and take negotiations, paper work, researching, scheduling, marketing and the managing of specialists on their own which in turn does not require a commission to be paid to a REALTOR® for their service.

You will still have the same service and similar information provided to you on this type of purchase from your REALTOR® but with a few extra steps and requirements along this path.

Most buyers have already signed a Buyer Agency agreement and have agreed to pay their agent a fee for service if a private seller has not agreed to.

Homeowners ultimately want to net a certain amount and have either factored in a number to compensate for a prospective buyer that is working with an agent. They will ask for more money on the sale to compensate for the buyers agents fee to be paid if this has not already been covered by the buyers.


These are the 3 different scenario breakdowns that buyers typically will encounter on their purchase.

Although you may ultimately purchase a home that is not paying a fee for service to your REALTOR® the service, guidance, education, trust relationship and diligence that has been provided to you throughout the entire process is of great importance and well worth the compliance and understanding as to why agents use a Buyer Agency Agreement.

Ultimately it is important for both buyers and sellers to have 2 separate agents representing them on their transaction to achieve their most successful sale.

I ask that you tell any REALTOR®, Representative or home owner that you encounter that you are working with me and if you have any concerns we will discuss them more thoroughly.

My ultimate goal is to have you purchase a great home with the best experience.

Thank you,

Alison Maharaj REALTOR®

Century 21 Bachman & Associates

Alison O’Toole

Alison O’Toole

CENTURY 21 Bachman & Associates
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