29 December 2010
The problem is that many buyers don’t want to pay buyer’s agent fees either, especially first-time buyers.
So here’s a question. Generally, lenders and mortgage default insurers (e.g. CMHC) include all commissions in the lending value. This value determines the maximum possible mortgage amount. But what if the seller doesn’t want to pay the buyer’s agent at all?
In this case, CMHC will consider the variant of a purchase price which includes real estate commission. But the payment of that commission should be included in the purchase agreement, and the total purchase price can’t exceed the lending value of the property. All fees and commissions should be included in purchase agreement.
It means SELLER will have to add a buyer’s agent’s commission in the purchase agreement, because otherwise a lender won’t include it in the buyer’s mortgage.
In case the buyer’s agent doesn’t want to be involved into that negotiation, the buyers can do it themselves. According to October rule changes, the buyer now has the right to negotiate directly with the seller.
In other words, it’s always necessary to discuss it with your agent. Every case has its own peculiarities, so you have to see what’s best for you. We also believe that a professional agent will help you save more money.