Ellen Roseman

Personal finance columnist at the Toronto Star and previously the Globe and Mail. My passion is consumer advocacy and making sense of money

Oct 27, 2021
Published on: LinkedIn
1 min read

It would be great to see a market research firm do a survey of residential real estate buyers. Do they know that using a buyer’s agent who works for the listing brokerage of the property they purchase will likely mean paying too much?

Real Estate's Best Kept Secret:

The banks know it, but won't say anything. The mortgage brokers know it, but won't say anything. Real estate agents know it, but they're definitely not going to say anything.

When is somebody going to be straight with home buyers? When is somebody going to let them know that if their agent works at the listing brokerage, they're going to overpay for their new home!

It's not intuitively obvious, but every agent at the listing brokerage, not just the listing agent, has a legal obligation to protect and promote the financial interests of the sellers who have listed their homes with the brokerage.

Under penalty of law, no agent, not even the buyer's best friend, can suggest that any of the homes listed at their brokerage might be overpriced, or by how much.

When a buyer's agent works at the listing brokerage, the buyer is going to overpay. It's just that simple.

Thank you for reading.

NAEBA - National Association of Exclusive Buyer Agents, Victoria Henderson