In Colorado, buyers can hire a real estate broker in two ways: either as your agent, or as a transaction broker. As a an agent, my job is to protect you and promote your interests. I can share my knowledge and expertise with my clients, so that they can benefit from it. A transaction broker, on the other hand, merely guides the transaction along to its conclusion without protecting or promoting anyone.
As an agent, I will protect your interests as a real estate buyer during the entire transaction, from the day you sign the agency agreement, until the day you get the keys to your new home. As an agent, there are certain things I am allowed or required to do, and some things I am not allowed to do without your complete consent.
No matter how I work with you, I have to “exercise reasonable skill and care” in performing my job. There are certain things that I have to do when you hire me, whether you hire me as an “agent,” or as a “transaction broker.” These things — as identified by the Colorado Real Estate Commission — include:
- Completing any written or oral agreements you and I make
- Presenting all offers to and from you in a timely manner regardless of whether you’re already under contract to buy another property
- Telling you any adverse material facts that I actually know
- Advising you regarding the transaction, and advising you to obtain expert advice about important matters that I might know about, but are beyond my expertise
- Accounting for all money and property received in a timely manner
- Keeping you fully informed about the transaction
Unless you allow it, there are certain things I cannot do, such as disclose:
- That you are willing to pay more for a property than you offered
- What your motivating factors are
- That you will agree to financing terms other than those you offered
- Any material information about you, unless disclosure is required by law, or failure to disclose that information would constitute fraud or dishonest dealing
Additional duties of an agent
If you hire me as an agent, you can expect the following duties:
- Promoting your interests with the utmost good faith, loyalty and fidelity
- Seeking a price and terms that are acceptable to you
- Counseling you about any material benefits or risks of a transaction that I actually know
These three additional duties are only available when you hire me as your agent, not just your transaction broker.
As a part of agency, I can help determine what a property is worth before you make an offer. This is part of being able to offer my clients the benefit of my knowledge and expertise. I do this by analyzing the current market conditions for that particular property. I use data from several sources to get as clear a picture as we can get about the true value of the property, so you’ll have a better idea about what you should do during the negotiation of your offer.
Sometimes, hiring a real estate broker is not necessary, or even allowed. In those rare cases, you might want to hire me as a transaction broker so that you can hand off processing the paperwork, and not have to worry that any details will “fall through the cracks.” It is an unusual case that I would work with a real estate buyer as a transaction broker. If you’ve got questions about this, let me know.
It’s easy to get overwhelmed. You should protect yourself.
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If you have any questions or comments about the process of buying real estate in Highlands Ranch or the Denver, Colorado metro area, feel free to give me a call at 720-258-6211, or fill out this little form and send it to me. I’ll get back to you as soon as I can, but remember that I can’t answer your questions if you don’t ask them. If you’ve got something on your mind, let me know, and do it now before you forget.
By the way, I’m never too busy for your referrals.