Click below to learn why a Buyer's Agent is so critical in the largest investment most people will ever make.
Do I Have To Use A Buyer's Agent To Purchase A Home?
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Nope.
You are able to negotiate directly with the Listing Agent of a property, or if a property is not listed, you can negotiate directly with the Seller / Homeowner.
In the case of negotiating directly with Listing Agent, you will most likely be treated as a Customer (see below "How Can I Be Represented When Buying A Home in Westminster Elementa").
In these situations keep in mind that there is no one legally bound to look out for your best interests. In fact, the other parties are legally bound to pursue the best interests of the Seller / Homeowner.
How Can I Be Represented When Buying A Home in Westminster Elementa?
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As a buyer in Westminster Elementa, there are three main ways that a licensed agent can represent you:
1. Buyer's Agent (click for details)
In most situations, you should have an agent represent you as a Buyer's Agent. This type of representation ensures that you are represented by an agent that is looking out for your best interests, an agent that can advise you,
and an agent that has a fiduciary duty to look out for you.
Colorado defines a Buyer's Agent as (emphasis ours):
A buyer's agent works solely on behalf of the buyer to promote the interests of the buyer with the utmost good faith, loyalty and fidelity. The agent negotiates on behalf of and acts as an advocate for the buyer. The buyer's agent must disclose to potential sellers all adverse material facts actually known by the buyer's agent including the buyer's financial ability to perform the terms of the transaction and, if a residential property, whether the buyer intends to occupy the property. A separate written buyer agency agreement is required which sets forth the duties and obligations of the broker and the buyer.
2. Transaction Broker (click for details)
A transaction broker is still required to inform a buyer of all material facts, but is not legally required to work on behalf of the buyer.
Colorado defines a Transaction Broker as:
A transaction-broker assists the buyer or seller or both throughout a real estate transaction by performing terms of any written or oral agreement, fully informing the parties, presenting all offers and assisting the parties with any contracts, including the closing of the transaction without being an agent or advocate for any of the parties. A transaction-broker must use reasonable skill and care in the performance of any oral or written agreement, and must make the same disclosures as agents about all adverse material facts actually known by the transaction-broker concerning a property or a buyer's financial ability to perform the terms of a transaction and, if a residential property, whether the buyer intends to occupy the property. No written agreement is required.
3. Treat You As A Customer (click for details)
Finally, a Buyer can be represented as a Customer. This is typically how a Seller's Agent will interact with a Buyer purchasing a home listed by the Seller's agent.
Colorado defines a Customer as:
A customer is a party to a real estate transaction with whom the broker has no brokerage relationship because such party has not engaged or employed the broker, either as the
party's agent or as the party's transaction-broker.
View Comparison Chart
Buyers Agent
Transaction Broker
Agent Treating Buyer As A Customer
Represents ONLY The Buyer's Interests
Has a Fiduciary Obligation To The Buyer
Negotiates on Behalf of the Buyer
Acts as an Advocate for the Buyer
Has Loyalty ONLY To The Buyer
Must use reasonable skill and care in the performance of any oral or written agreement
Must make disclosures about all adverse material facts actually known
Must Fully Assist ALL Parties With Contracts
May NOT Advocate For Either Party
May Legally Write Contracts
What Are A Buyer's Agent's Duties In Colorado?
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First and foremost, a Buyer's Agent has a Fiduciary Duty to the Buyer to ensure that their best interests are always the primary goal. A Buyer's Agent has a legal duty to work solely on the Buyer's behalf (never for the Seller).
These are the primary duties that we help all of our Buyers with. Each transaction in unique and this list is by no means exhaustive. Please reach out to us for a more detailed explanation of each of these duties.
Identifying Your Financial Needs (click for details)
For many buyers, the first step is finding the right financing program to use. Our team has access to lenders that provide
Down Payment Assistance, Rent To Own Programs,
VA mortgages, FHA mortgages, conventional financing and more.
We pride ourselves on listening to your needs and matching you with the right partner to make your home ownership dreams happen.
Identifying Your Home Needs (click for details)
Finding the right home goes well beyond searching for a home with a certain number of bedrooms, bathrooms located in a particular area.
What is your timeline for moving. Do you need to coordinate a lease ending or the sale of another property?
Do you need the home in a certain school district?
Do you need special consideration for pet(s)? Yard? HOA considerations?
Do have specific commuting needs or a "walk score?"
Once we have identified potential homes for you we then begin scheduling showing, refining your search and looking for the ideal home for you.
That's when we really go to work for you.
Contracts (click for details)
One of the most confusing aspects for Buyers in a real estate transaction are the contract, forms and disclosures.
As your Buyer's Agent, it is our job not just to prepare these contracts for you, but also to educated and explain each of them in detail.
Here is a brief overview of each:
Purchase Contract: This 24 page contract spells out the terms and conditions of the sale. As your Buyer's agent, will we educate you on the contract and all the ramifications each of the 30 sections cover.
Counterproposals: Once we submit a contract to the Seller, they may accept the offer outright or offer a counterproposal to the contract. We will educate you on this counterproposal and help you decide if accepting it is in your best interest.
Disclosures: Once you are under contract, you will receive several disclosures regarding the home. These can include:
Seller's Property Disclosure'
Square Footage Disclosure
Source of Water Disclosure
Mold Disclosure
Closing Instruction
Inspection Objection: Within the first 10 days of going under contract on a home, you will have an inspection performed on the home.
You are free to use any inspector of your choice or one of our recommended home inspectors.
The inspector will check major home components such as electrical, HVAC, plumbing and many others. In addition you can have a radon test, sewer scope or several other additional inspections.
Once we receive the inspection results, we will work with you to determine what item(s) we need to ask the seller to address. We will create an official Inspection Objection for you and submit it to the Seller.
Inspection Resolution: Once an Inspection Objection is submitted, we will receive an Inspection Resolution from the seller explaining what they are willing to address. We will again negotiate on your behalf.
HOA Covenants And Financial Review: If the home is located in an Homeowner's Association, you will recommended the HOA documents which will include covenants, bylaws and financials. We will
work with you to review the documents.
Amendments: During a transaction, dates, deadlines or other aspects of the contract may need to be changed. In this case we will prepare any needed amendments for you and explain them in detail.
Post Closing Occupancy Agreement: While many Buyers will take possession of their home on the day that they close, many times the Seller needs a few days or weeks after the sale to move out.
In this case we will prepare a Post Closing Occupancy Agreement on your behalf. This document will specify item such as:
How long is the post closing occupancy period?
Who pays for utilities and insurance during the post closing occupancy period?
Is there any rent to be paid and how much?
Is there a deposit that will be collected?
What happens if the Seller fails to leave the home?
Negotiation (click for details)
Negotiating for your home can encompass much more that just the price. Factors such as dates, property inclusions, earnest money and more can all impact the purchase.
In addition, we will provide comprehensive data and interpretation on what other similar homes have sold for and other factors of those sales.
Our goal is to educate and guide you to help you get the bet value on your home
Protecting Your Earnest Money (click for details)
When you go under contract on a home, Earnest Money is held as "consideration" for the contract. This is a sign of good faith by the Buyer to show that they intend to purchase the home.
This earnest money can be anywhere from $1,000 to over $50,000 and is negotiable.
Upon a successful home purchase, this Earnest Money is eventually used as part of your down payment and/or closing funds.
As your Buyer Agent, we will make sure that your Earnest Money is protected and refunded to you if you need to terminate the contract for one of many reasons including: inspection, appraisal, loan conditions and many more.
Property Inspection (click for details)
We outlined the Inspection Objection and Inspection Resolution above, but there is more than just the contract aspect of the inspection. In Colorado, the Contract To Buy And Sell Real Estate, allows the Buyer to terminate the contract on Inspection
based on their "sole subjective discretion." If for any reason you would like to terminate the contract on Inspection, we will prepare the correct documents and ensure that you have your Earnest Money refunded to you.
Property Appraisal (click for details)
You and your lender will have the right to conduct an appraisal on the home to ensure that the value of the home is in line with the purchase price.
If the appraised value of the home comes in below the contract sales price, we will either negotiate on your behalf to have the sales price reduced, or fill out the proper forms to terminate the contract and have your Earnest Money refunded.
Pre-Closing Walk Through (click for details)
Prior to closing, on the day before or day of closing, we will do a final walkthrough of your new home. We will ensure that the home is in the condition you expect it to be in and that any agreed to repairs have been completed.
Closing (click for details)
Prior to closing, we will review final figures with you. Our job is to explain prorations on items such as insurance, taxes and HOA dues. We will attend closing with you and walk you through the many forms and documents required.
Post Closing (click for details)
As your Buyer's Agent, our job doesn't end at closing. We make sure that you take possession smoothly and are there to assist you as you move in to your new home. Congratulations!
Who Pays The Buyer's Agent Commissions In Colorado?
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For many, many years, Buyer's Agents' commission in Colorado were paid for by the Listing Agent or Seller of the property roughly 95% of the time.
Recent changes in the industry, including an ongoing legal battle, have created changes that will go into effect August 17, 2024.
As of August 17, Home Sellers will have the option of offering to pay the Buyer's Agent commission directly, to offer the Buyer a concession amount, or to pay no Buyer Agent commission.
We will work with our Buyers to determine their needs and, if needed, negotiate on our clients' behalf to have our Buyer Agent Compensation paid by the Home Sellers.
It is important for both Home Sellers and Homebuyers to remember that the Sold price of most homes includes a fee paid to a Buyer's Agent. This fee, and who paid it, factors into the value of a home.
We will continue to update this page as needed.
Can I Cancel My Buyer's Agency Agreement?
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Our team has always allowed a client to cancel their agreement with us.
We are so confident that you will be thrilled with our service, that we allow you to cancel for any reason.
Please contact us for the full details.
Just kidding, the full details are that we ask for 48 hours notice and that it is subject to us not having already fulfilled our duty by getting you under contract on a home.
Can You Help Me With Down Payment Assistance, Rent-To-Own & other First Time Buyer Programs?
Begin by giving us a call or filling out the form below so we can learn more about how we can help you.
Fact Check: But The Media Said I'd Save "Thousands!"'
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The media says a lot of things.
One of the favorite lines that has been going around is that "You no longer have to pay a real estate agent a 6% commission."
The simple fact is that real estate commissions have always been negotiable.
Always.
We'd love to have a conversation with you to explain our value and how we are worth more than our commission.
The Benefits Of Using A Buyer's Agent In A Competitive Market
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The Westminster Elementa real estate market has seen a record low in available housing inventory in recent years. This low inventory combined
with an every increasing demand has caused a competitive homebuying atmosphere like we have never experienced.
In addition to Buyers having to navigate the normal hurdles of a home purchase, Buyers are finding themselves in uncharted waters with bidding wars, appraisal-gap coverage, escalation clauses and much more.
Attempting to purchase a home with no representation in today's market is not just difficult, but incredibly risky.
You obviously don't have to use us to advocate for you when buying a home, but we STRONGLY recommend having a Buyer's Agent on your side.
Interested in learning more about how we can help make the homebuying process, smooth, easy, and enjoyable?
We'd love to hear from you and answer all of your questions!
Sold Home Stats
21%
12.8%
19.5%