Do homework before hiring service providers
My sales representative is recommending certain service providers. Do I have to go with them?
When you are thinking of buying or selling a home, there are times when you need experts or service providers to help you throughout the process.
For example, if you are selling your home, you may want help getting the house ready to show. This could involve hiring painters, retaining a professional stager who can prepare your home for showing or any other service provider.
If you are buying a home, it may be advisable to hire a home inspector to conduct an inspection of the property before you purchase it. A real estate lawyer will also assist with title searches and other legal needs. A mortgage broker or a mortgage specialist at a financial institution can help you acquire the financing you need to purchase the home.
Finding the right experts for your needs can be daunting, especially if you have been out of the housing market for a while.
One source for service providers can be your sales representative who, by virtue of working with previous clients and service providers in the past, may have knowledge of professionals they can recommend.
However, you are under no obligation to use someone your representative is recommending.
Moreover, you can expect your representative to ask you clearly if you want them to hire someone for you. Make sure you are clear in your direction to avoid misunderstandings about your own expectations.
As I’ve said in many of my columns, it’s always smart to shop around for professional services. Do your homework, get some recommendations from family and friends and interview a few before you make a decision on hiring someone.
If you are considering your sales representative’s recommendation, you should know that your representative is required by law to advise you in writing if they are receiving any direct or indirect financial benefit from the service provider for the recommendation or if they have any other type of relationship with that provider.
If you aren’t certain, you can ask to make sure you are making an informed decision.
If it ends up that your representative would get a benefit and you are uncomfortable with that arrangement, you can opt not to go with that service provider and instead find one on your own.
It may well end up that you hire the person being recommended. However, it’s important to know whether your representative has a financial relationship with the service provider.
Armed with this information, you will make an informed decision. Joseph Richer is registrar of the Real Estate Council of Ontario (RECO). He oversees and enforces all rules governing real estate professionals in Ontario. Email questions to askjoe@reco.on.ca. Find more tips at reco.on.ca, follow on Twitter @RECOhelps or on YouTube at youtube.com/ RECOhelps.