Buying Your Home - Working With a Real Estate Agent

Are your best interest's being met by your REALTOR?

What type of agent have you contracted for?

You have two choices in Colorado:

Buyer/Selling Agent or Transaction Broker

Definitions:

Buyer or Selling Agent is like having a coach or manager on your side, they have a Fiduciary responsibility to you. The Buying or Selling Agent looks out for your best interests and works to favor your advantage. They make sure you know all that they know from their research and knowledge gathering. They work to get you the best purchase price or the best selling price as an advocate for you.

Transaction Broker Most Realtors act as Transaction Brokers which simple means they act as a Referee for the Transaction. Their duties are to ensure Buyer and Seller play fair and are neutral to the transaction. They are basically the messenger and will not seek out a better price or terms. They don’t advocate for or have fiduciary responsibility to you!

Example Selling Agent:

A: You receive an offer, but it is much lower than expected, but still an offer. Your Selling Agent is allowed to let you know any circumstances that helps you the Seller get more money for your home, such as the Buyer can afford much more, you can respond to this offer knowing this information

Example Transaction Broker:

A: The flip side for selling your home is the Transaction Broker they are not allowed to let you know anything that would give you the Seller an advantage and it may lead you into accepting an offer to low for your home!

Whenever possible we at RE/MAX work as your Selling or Buying Agent. Even if you decide to work with anther REALTOR besides us we want you to be protected. So before signing any contract, make sure you are represented in the best way possible for you. Remember it is your choice!

Can I use an agent for a new home?

Yes, however buyers should be aware of the differences inherent in working with sales agents who are employed by the developer, rather than traditional real estate agents. Builders commonly require that an outside agent be present, and sign in, the first time a prospective purchaser visits a site before payment of commission even is discussed. At times when buyers use an advertisement to find the development themselves first, builders can refuse to pay any commission regardless of how helpful an agent may become later in the process. It is advisable to call the development first and inquire about their policy on compensating real estate agents if you are using one.

How do I find a real estate agent?

Getting a recommendation from a friend or work colleague is an excellent way to find a good agent. Be sure to ask if they would use the agent again. You also can call the managers of reputable real estate firms and ask them for recommendations of agents who have worked in your neighborhood. In any case, whether you are a buyer or a seller, you should interview at least three agents to give yourself a choice. A good agent typically works full-time and has several years of experience. If you are a seller, you should expect to review a comparative market analysis, which includes recent home sale prices in your area, when you talk to a prospective agent.

What about a buyer's agent?

In many states, it's now common for an agent to represent the buyers exclusively in the transaction and be paid a commission by the sellers. More and more buyers are going a step further, hiring and paying for their own agent, referred to as buyers brokers.

How do you find a good agent?

Getting a recommendation from a friend or work colleague is an excellent way to find a good agent, whether you are a buyer or a seller. Be sure to ask if they would use the agent again. You also can call the managers of reputable real estate firms and ask them for recommendations of agents who have worked in your neighborhood. A good agent typically works full-time and has several years of experience at minimum. If you are a buyer, you don't usually pay for your agent's services (in the form of a commission, or percentage of the sales price of the home). All agents in a transaction usually are paid by the seller from the sales proceeds. In many states, this means that your agent legally is acting as a subagent of the seller. But in some states, it's legal for an agent to represent the buyers exclusively in the transaction and be paid a commission by the sellers. You also can hire and pay for your own agent, known as buyer's brokers, whose legal obligation is exclusively to you. If you are a seller, you should interview at least three agents, all of whom should make a sales presentation including a comparative market analysis of local home prices in your area. The best choice isn't always the agent with the highest asking price for your home. Be sure to evaluate all aspects of the agent's marketing plan and how well you think you can work with the individual.