The Skinny on Real Estate

A blog about Broomfield real estate

I have written several blog posts on why it may be a good idea for you to use a buyer’s agent when you purchase a home which I recap and link to below. I would also like to point out this very accurate and succinct explanation here by a Realtor in Virginia (Frank Llosa) who is explaining a new buyer’s agent “system” he has created. (Which btw I think is brilliant but that’s another post for another day.)

To recap my reasons for why you may want to use a Buyer’s Agent:

1. The seller pays for the commission for both the listing agent and the buyer’s agent - this is stipulated in the listing agreement. If you choose to make an offer on a home, without representation, and automatically deduct 3% because you have no buyer’s agent, you are taking money from the seller NOT the listing agent. The seller is still legally obligated to pay the listing agent, whatever percentage of the home sale was stipulated in the listing agreement, to begin with. This means the listing agent picks up the entire commission, including the percentage that was set aside in the listing agreement, in the event that a separate buyer’s agent was used. While it isn’t impossible to have this contract altered, it may not be likely or even legal. (See the Llosa explanation above.)

2. Using a buyer’s agent is the ultimate time saver for you. I do all the tedious and boring legwork for you because this is how I earn my keep. And for some crazy reason I find this fun. I enjoy slogging through the public records to find out what homes are selling for in a particular neighborhood, finding out if there are there any current/past foreclosures, looking up the listing history on a home, analyzing price trends, digging through old city council minutes and talking to folks at the county office to see if there are any radical plans for the area, creating really cool looking charts to break the data down for you, etc. etc. I know, I’m an odd duck. What can I say? At least you won’t have to do this yourself!

3. It protects you. As your buyer’s agent I represent YOU. I am legally obligated to represent your best interests. I work for YOU. This is what I get paid to do. It’s very possible that I can save you even more than that 3%, you were planning to deduct for lack of a buyer’s agent, because I know the area and the prices and I will aggressively negotiate on your behalf to get you the best deal possible. I like to get people a great deal because that tends to make them happy and they tend to recommend me to their family and friends and, well, you know the rest of the story.

4. And yes, you can even use a Buyer’s Agent to help you buy a brand new home for many of the same reasons explained above.

If you decide you’d like to look into using a buyer’s agent to purchase a home I’d be happy to take your emails or phone calls. And no, I won’t split or rebate my commission with you. (Unless you’re thinking you’d like to share some of your paycheck with me, that’s a different story.) I get paid to do a job much like the cashier at Costco, the person who styles your hair, the accountant who does your taxes, the lawyer who defends you in court, etc. If you decide you don’t need the services of a buyer’s agent then you are obviously free to do that and I don’t begrudge you that right in anyway.

However what I WILL do for you, as your buyer’s agent, is represent YOUR interests and YOUR interests only, as you prepare to make this very large transaction. As your buyer’s agent I have a legal and fiduciary obligation to do my utmost to represent YOU and I take that very seriously. That means if I see a potential pitfall in buying a particular home, I will point it out to you even if in the long run it means the sale doesn’t go through, and ultimately I don’t get paid. It means that I will work tirelessly on your behalf to find you the very best home for you at the very best price possible. Period.

photo credit: katmere