It can be very confusing when you are buying a home. There are seller’s agents, buyer’s agents, the buyer and the seller. Who is responsible for paying for what when you buy a home? We have included below some information that can help you decipher these real estate terms. (This list does not include pre-approval of your mortgage through your financial institution or broker.)
Buyer’s agent
This person is your advisor when you are buying a home.
- Gives information on market trends.
- Research home sales in the area you wish to buy.
- Negotiates on your behalf.
- Your counsel on repairs that may be needed for a home.
- Is present at the closing to make sure your interests are protected.
- Shares commission with the listing agent.
Seller’s agent (listing agent)
This person is your advisor when you are selling your home.
- Helps you sell your home for the highest price possible.
- Negotiates with the listing agent for an agreement of a price agreed upon by both buyer and seller.
- Works with escrow to make sure the house closes on time.
- Shares commission with the buyer’s agent.
Buyer
- Does not pay the commission fee.
- The buyer does not cost the seller more by having an agent as the commission fee is split between the buyer agent and the seller agent.
- It does not cost the buyer anything to have a buyer agent representing them.
Seller
- Pays commission on the sale of the home.
- Can negotiate a commission on the sale of the home but sometimes the percentage is not negotiable. It is set in the listing agreement.
Who pays for the utilities on closing?
Utilities are metered readings and are the responsibility of the seller to pay for water, hydro and gas up to the day of closing. They need to pay a final bill of consumption to that date.
What closing costs do buyers pay in Ontario?
Closing costs usually run between 2% and 5% of the purchase price. You will need to connect with your lawyer for an exact list of what the exact costs are. Some costs may include Provincial sales tax, GST, land transfer, insurance and legal fees.
We hope we have made you think about what you need to do when you decide to buy and sell. Our Anne Winch Real Estate Team would be happy to answer any questions you have about buying, selling, or staging your home. We are here to help and make your real estate process run as smoothly as possible. Give us a call, text or email and see how we do things differently than other real estate firms.