The short answer is .... probably not!

Before getting into the risks of buying with the Listing Agent, it’s important to understand a few terms and rules in Ontario:

Technically, Buyers and Sellers hire a brokerage, not an agent, and their agreements are with the brokerage, not the agent.

The Listing Agent is the person who represents the Seller. The agent’s responsibilities to the Seller include:

• Promoting the best interests of the Seller (ie, negotiate price and terms favourable to the Seller)
• Telling the Seller anything they know about the Buyer (eg the Buyer’s circumstances, their willingness to pay more than they’ve offered, etc)
• Keeping confidential anything the Seller shares (eg. why they are selling, the price they are willing to accept, etc.)

The Buyer’s Agent is the person who represents the Buyer. There are 2 ways an Agent can work with a Buyer:

• By having the Buyer sign a Customer Service Agreement, making them a Customer. When you’re a Customer, the agent does NOT work solely in your best interest and provides restricted services. The agent’s obligations are:
• Fairness, honesty and integrity to everybody
• Conscientious and competent service
• Only disclose to you the material facts that he or she already knows or ought to know – they aren’t required to take any further investigative steps.
• Limited privacy obligations
• By having the Buyer sign a Buyer’s Representation Agreement and treating you like a Client. The obligations to a Client are:
• Fiduciary: the agent must promote and protect your best interests at all times
• Negotiate favourable terms for the Buyer
• Maintain confidentiality
• They must take reasonable steps to determine and then disclose to you all material facts about the property.

See the difference?

In Ontario, it’s legal for an agent to work for both the Buyer and the Seller. It’s called Multiple Representation and it’s complicated. When an agent works for both the Buyer AND the Seller, they are acting as mediators and have certain obligations:

• Confirm in writing that all parties understand and consent to the agent representing both parties
• Do what is best for both Buyer and Seller (it’s hard to provide the best service for one party when that usually means sacrificing something for the other party)
• Not reveal confidential information to either side

Generally, it’s not actually cheaper to buy with the Listing Agent. Some people believe that if they buy with the Listing Agent, they’ll save money because the agent is going to make extra commission, so they’ll get part of that commission. Truth: the Seller pays the commission so Buyers can’t actually negotiate the commission with the Listing Agent – that conversation took place long ago between the Seller and the Listing Agent and has nothing to do with you, the Buyer. While the Seller may save some money if the Listing Agent brings a Buyer themselves, that’s cash in the Seller’s pocket, not yours.

While the Listing Agent does probably know the house better than anyone else, it’s their job (and to their benefit) to focus on the positives of the house and the neighbourhood. Don’t count on the Listing Agent to volunteer information about the termite problem on the street, the hoarder next door, the leaky inground pool or the dampness problem in the basement. If you work with an experienced Buyer Agent, it’s their job to represent you and only you. They’ll get the scoop on the house and the neighbourhood. They know what questions to ask, where to research and they hopefully already know the neighbourhood. Also: some Listing Agents don’t do a great job of finding out about the house and the neighbourhood and the Buyer’s Agent already knows more than them. Don’t get me started on that one!

The Listing Agent’s goal isn’t to get you the RIGHT house, it’s to get you to buy THIS house. Having your own agent means they are motivated to find you the perfect house in the perfect neighbourhood no matter how long that takes. Of course, some agents are primarily motivated by the possibility of a bigger commission, so the person they are most concerned with is themselves. Ugh.

People who work with the Listing Agent almost always reveal their position – their budget, that they’re pregnant or that need to buy a house in the next 30 days. The Buyer’s Agent keeps all of that information confidential so it can’t be used against you in negotiations.

One of the most important qualities you need in an agent is negotiating skills. As a Buyer, you want someone who can negotiate on your behalf, and that’s not really possible under Multiple Representation.

In short, unless the Listing Agent was your agent before in a past transcation, it always makes more sense and is safer to have your own Buyer Agent. It costs you nothing to have your own representative, and in fact may save you a great deal of money and headache in the future!