Step by Step to Your New Home - Who's on Your Side?

Thinking about buying a home in the vicinity of Denver to Boulder, Colorado? If so, I'd love to be your agent. I'm different from other agents in a couple of ways. For instance, I like to educate my clients, so they'll have the best experience possible. That's what this post is about, and it's a little long, I know. So there's a couple of things I'd like you to know up front.

First, my services don't cost you anything - the seller pays their agent and a portion of that fee is 'co-opted' to me, no matter how much service I provide or how little.

Also, I am among the rare agents who actually limit the number of people they'll work with at one time. There's nothing more frustrating to a buyer than wanting to see a house but their agent's busy, and then the house is off the market before you've had your chance. I don't want that to happen to my clients, so I reserve big blocks of time for them as far in advance as possible.

And I don't believe any buyer is 'too picky'. As long as you are serious about buying, I recognize your right to find the right home for you. I know it's a huge decision.

Did you know that the term, ‘your agent’ has special meaning in Colorado? That's one of the ways buying a home in Colorado is different from most other states. It's an important term to understand, we're required by law to explain it, and there's a form we're supposed to have you sign, stating that we've done the job. (Let me know if you'd like a copy of this form.)

This is all about protecting you - the buyer. Otherwise you might find yourself in the vulnerable position of sharing private info with someone who is really working for the seller, when all along you thought they were working for you.

In Colorado, a person is not your agent - they are not representing you - unless you've signed a written agreement to establish an agency relationship.

Here's some examples: You find a house for sale on the internet, call the listor and ask to see it. The friendly listor meets you there, shows the house in its best light, and starts asking you questions. If that person is an agent for the seller, their goal at this meeting must be to sell you that house, not to find the best home for you. Be careful about sharing info that can put you in a weaker negotiating position, as this person would certainly share that with the seller.

If that person is an agent for the seller, they cannot be your agent too. They can switch to being a transaction broker if the seller allows them to (which requires them to treat buyer and seller equally). They are still not your agent - not looking out for your best interests.

You might stop in at the sales office in a new development. Remember that the person you meet there is working for the seller, not you. In my experience, this is the scenario where most homebuyers end up with bad loans and struggle to keep from losing their house just a few short years later.

Let's say you walk into an open house. Again, the person you meet there could be an agent for the seller. They could also be a transation broker. The thing to remember is that they are not your agent.

Let's say you like someone's web site and after meeting them you decide you'd like to work with them. If you don't sign an agency agreement, the person you're working with is a transaction broker and must treat you and the seller of any house they show you equally, no matter how much time they've spent driving you from house to house, and no matter how many touching personal stories you've shared.

I prefer representing buyers as their agent. As your agent I work solely on your behalf. Here's some things I can do as your agent, that I'm not supposed to do as a transaction broker or an agent for the seller.

Determine if the house is priced correctly - as your agent I would do a market analysis and give you my advice without being asked to do so. As a transaction broker, I'm not supposed to do something like this unless you ask me to, and even then you're on your own interpreting what it means. As agent for the seller, it would be your responsibility to get this information.

Actively seek out houses that meet your needs, and preview them for you - which saves you a lot of time. Otherwise, it would be your job to tell me what houses you want to see.

I think that's enough for now! I really feel strongly about this issue, and I'm very concerned that so many in my profession don't take the time to explain it. Please know that if you work with me, I'll work hard to make your experience as pleasant and smooth as possible, even if that means it takes more of my time to do it right!