From time to time, I will run across folks driving through a neighborhood, stopping at homes for sale, and pulling flyers from the boxes.  Of course I stop to chat with these folks, and get around to asking them if they are working with a Buyers Agent.  Most of the time they say no.  So as the diligent broker I am, I humbly offer my services.  The usual response is “No thanks. We are calling the agents who are listing the homes.”  They go on to explain that they will be able to get a lower price this way, since the broker will be getting a smaller commission by double-ending the deal.  And they don’t want to be tied down to a single broker. 

 

I understand this logic.  Everyone wants to save money.  No one wants to limit their options.  But here are a few things to remember: 

 

  • A Listing Agent is obligated by contract to represent the Sellers’ best interest.
  • Any savings will probably go to the Seller, as the Listing Agreement is between the Seller and the Listing Agent. 

 

In Colorado, and many other states, a buyer can engage an agent to represent their interests. 

  • The Exclusive Buyers Agency agreement allows the home buyer, to receive the same kind of loyalty that home sellers typically enjoy.
  • This means the agent’s loyalty and fiduciary duty is to the buyer, through the entire home buying process. 
  • These duties are spelled out in detail in the Buyers Agency Agreement.

 

So if you, or anyone you know are considering a home purchase, here are some points to consider regarding Exclusive Buyers Agency versus working with a listing agent:  

  • Will the listing agent point out all the negative aspects of the property?
  • Will the listing agent provide information on comparable sales and help you to formulate an offering price based on current market conditions?
  • Will the listing agent show you all the homes on the market that meet your needs?
  • Will the listing agent keep your confidential information confidential?
  • Will the listing agent give you his/her undivided loyalty?
  • Will the listing agent try change your relationship to another form of agency with a reduced level of loyalty and service?
  • Will the listing agent work solely on your behalf and represent your best interests in all aspects of the transaction?
  • Will the listing agent work to get the lowest possible price and the best terms for you, the Buyer, or are they working for the Seller?

 

Finally, I always offer my Buyer clients an Easy Out clause.  Either party can terminate the Buyers Agency Agreement at any time with only 24 hours written notice.  No Hassle.

 

So if you, or anyone you know, is considering a purchase, please make sure to do them a favor and insist they work with a Buyers Agent, with an Exclusive Buyers Agency agreement.  If they (or you) are looking for a home in the local area, please give me a call.  I know the area.  And you can be assured that I will Work for You. 

 

If you are looking for property in another region, give me a call anyway.  I have established relationships with agents in many parts of the country, and I can refer you to someone who will take care of your needs. 

Thank you for listening. 

-Jim

 

PS   If you have a question, or topic you would like to see discussed in future blog posts, please feel free to contact me. 

 

 

 

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