Theoretically, it is ok for you to buy a home privately in Toronto, Ontario, with no brokerage or agent.
But why not have a professional assisting you during the complex transaction, reminding you of the potential issues, and what’s more, sending you a hefty cashback after the closing.
New homes include pre-construction condos, townhouses, and houses. The new home buying process is different than that of the resale market. You will directly deal with the builders via their in-house salesperson. The price of a new home is normally preset. You can only negotiate the development Cap fee, upgrades, etc.
Since the buyer agent commission is paid by the builder, you can use a free service by hiring a realtor. For the realtor to receive the commission, you need to register the agent with the builder at the very beginning.
The commission to a buyer agent is most commonly paid by the seller in the resale market. In most cases, the seller hires an agent to deal with things on his or her behalf.
You may need a checklist when buying a house without a realtor. How to view the property and how to make an offer on a house without a realtor are among the major concerns except in the situation of a house for private sale or For Sale By Owner.
It is quite an easy job if the property for sale has an open house schedule, but not every house has that option. You can review our up-to-date listings for all the open houses in GTA. You may ask for the listing agent's assistance to visit the house only if they are willing to arrange the viewing without a binding contract with you.
When you decide to make an offer on a home without an agent, there are a number of forms that you can refer to. But those OREA Forms are exclusively used by its members. You can also try with the listing agent to see whether they would like to help without any agreement with you. You could also hire a lawyer to draft and review the contract for you.
After your offer is accepted, if there are any conditions, you need to meet those conditions or have them waived to continue the deal.
Well before the closing day, you may need to hire a lawyer to do a title search and all closing-related issues such as a statement of adjustments.
Buying a house privately might create a number of encumbrances for you. For example,
You will face the challenge of dealing with the seller’s agent who has industry knowledge and negotiation skills.
You have to go through a lot of complex activities during the whole transaction process.
Even more challenging, you need to possess the knowledge to avoid any loopholes and mistakes during the complex deal, which could be costly.
In the event of a bidding war of multiple offers, which is common in Toronto, things are moving fast. When other buyers have professionals to help, your chance to buy a home with reasonable terms by yourself would be restricted and limited.
The possible solution is to get to know the industry practice, find the right cash back realtor, enjoy professional services and support.