Denver CO First Time Home Buyer Series – Deciding to Use a Realtor (Part 6)

Yes, a real estate agent is a sales person, but a Realtor® is more than that. A real estate professional which has an agency agreement with you is there to represent and advocate for your best interests and educate you on tactics that are in your best interest. A Realtor® has the education and industry knowledge along with a fiduciary responsibility to advocate on your behalf which should make a Realtor® the most important tool in your belt.

In most transactions there are two real estate agents involved. One agent is there representing and advocating on behalf of the seller and the sellers best interests. The other is there to represent and advocate the home buyers best interests. Imagine how one-sided the transaction would be if the only agent involved were the seller’s agent…. The only professional in the transaction would be looking out for the seller’s best interests. Who would be looking out for yours?

Home buyers need professional representation in real estate transactions to help them avoid the dozens of pitfalls they could fall into without being armed with their own Realtor®.

Some things to consider during your first time home purchase with your buyer’s agent. 

1 - Real Estate transactions are not easy, they are multi-faceted and complex.

There are dozens of small pieces during every real estate transaction and the success or failure of the transaction can hinge upon any one of them. Colorado real estate law is immense and complex with dates, deadlines with a vast amount of paperwork and contracts. A professional Realtor® has the education and experience to avoid the pitfalls and guide the transaction to a successful closing. Working with the right Realtor® gives you a sense of security and an opportunity to learn your role through the process of buying your home.

Colorado real estate law allows for a real estate agent to function in two distinct ways when working with a home buyer. When representing a buyer the agent can operate in the role of a buyer’s agent which allows them to be an advocate for the home buyer, promoting the home buyers best interests and operating in a fiduciary manner. The agent can also operate as a transaction broker where the agent advocates for neither party and only facilitates the transaction. 

To make the distinction simpler to see, the transaction broker could be seen as fulfilling the role of umpire in a football game impartial with only the interest of making sure the rules are followed. The buyer’s agent on the other hand would equate to the role of a team’s head coach by strategizing, planning and calling plays to create the best outcome for the home buyer and in another sense win.

A buyer agency relationship will have a specific time frame that it covers and will create a confidentiality agreement between the home buyer and the Realtor®. In this relationship any information shared with your Realtor® will not be shared with anyone else without your permission.

Throughout my experience as a Realtor® I have seen many instances as I negotiate on behalf of my clients with other sellers or buyers they oftentimes will reveal information which is detrimental to their own negotiations. In their minds they are being friendly but a good negotiator will pick up on those signs and pick them apart at the negotiating table. 

Home buyers and sellers will also focus in on the same thing in every transaction. That is the sales price. Though that is important there are many other terms that also have a large impact on the successful outcome of your home purchase. There is a listing agent advocating and protecting the interests of the seller during the transaction and there clearly should be a experienced and knowledgeable Realtor® there to protect you.

2 – Realtors® should leave emotions out of it.

Purchasing a home for anyone is an emotional experience and for a Denver CO first time home buyer those emotions run even higher. Because of this, home buyers need a Realtor® involved that can keep their emotions in check and be focused on home buyer’ goals. This also helps the home buyer stay focused on the important things and gives them a person with whom they can remain grounded in pursuit of their goals.

An ideal example of a time when emotions can run high is during multiple offer situations. Let’s face it, people tend to be competitive and sometimes want to win at all costs. Because of that desire it is easy to lose focus when competing for the purchase of a home. In times like this when emotions run high good buyers agents will keep your goals in mind and provide objective guidance so you can remain on track to achieve your initial goals.

3 – New home purchase? Your agent can assist!

A myth perpetuated by new home builders is that a buyer’s agent is not needed for a new home purchase. Entering into a real estate transaction with a home builder un-represented is not a good idea. The contracts builders use for the sale are customized by the lawyers and agents representing the best interests of the builder. They are not representing your interests as your buyer’s agent would. Not being represented by your own Realtor® when purchasing a new home can end up costing you big. New home builders also pay the buyer’s agents fees – you do not.

4 – Having specific knowledge and experience to know what to expect.

Experienced Realtors® have already fought the fights and know what the expectations are during a transaction which keeps their clients from being taken advantage of. If you’re looking for homes in an area outside your budget an experienced Realtor® can let you know that an adjustment needs to be made to either the location or the projected budget.

When sellers come back requesting items out of the ordinary such as an extraordinary amount of earnest money or exceptional lengths in the proving financial approval, your Realtor® can alert you to the common industry practices and assist you with recommendations on how the situation should be handled.

Situations like these make quality, experienced Realtors representing buyers worth their weight in gold. Buyers normally do not compensate their agents either. There is no better deal than having a buyer’s agent represent your best interests and looking out for potential pitfalls when you are purchasing your first, second or fifteenth home. 

Feel free to call us anytime with any questions you may have in the home purchase process.

A few testimonials from clients:

James and Karen F - Bruce and his team have assisted us through the purchase of three homes and another for our son. His experience and professionalism throughout the transaction made the process easy while keeping our goals at the forefront. Delightful to work with and gave us great comfort knowing that he was on our side.

Dan and Teresa H - We were referred to Bruce by a friend who he helped in the past. We were facing some unique issues and Bruce guided us through them long before we even decided to purchase a home. Once we did decide to purchase, he taught us what we needed and guided us step by step through the process. When we found the right home he negotiated aggressively to get us what we needed. His assistance during those hectic times made him the only realtor we will ever use and we recommend him to everyone we know. The friend who referred us to Bruce got a huge thank you!

Mike T - WooHoo! We have the home we never thought we could and it is all thanks to Bruce and his team. During the process we were impressed at how well Bruce personally stayed in touch. He also listened to our situation, our goals and helped us achieve them. Two Thumbs Up!

Next up in the Denver CO First Time Home Buyer Series – Understanding the Real Estate Contract (Part 7)