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Should I Work With A Buyer's Agent? A Seller's Agent? A Transaction Broker?

You should understand from the beginning what type of relationship you require of your Colorado Springs Real Estate agent. You should also know that in Colorado, real estate agents are required by law to let consumers know whether they represent the buyer, the seller or both.

In the past, a Colorado Springs Real Estate agent represented the seller exclusively, whether the agent helped a seller to market and sell the home or helped a buyer find and purchase the home. In other words, Colorado Springs Real Estate agents were at one time legally bound to represent the seller in a residential real estate transaction. In that same scenario, the seller paid both the listing agent and the agent who brought the buyer.

However, in Colorado's real estate market, you can choose between a variety of options for representation. If you want to sell a home, you can choose exclusive "seller's agency". If you are purchasing a home, you can choose exclusive "buyer's agency". With exclusive "agency" you will receive advocacy from your agent. Simply stated you will be able to receive professional advice regarding the real estate your are buying or selling.

An additional situation that presents itself in Colorado is the transaction broker. This type of situation exists when both parties agree to allow one real estate agent to handle the entire transaction. Under Colorado law parties who elect to allow this situation, will receive any disclosures required by law along with fair and proper dealings from the real estate professional involved in the "transaction".

It must be understood that in this situation no advocacy from the real estate professional will be recieved. Simply stated you will not be getting any advice pro or con from the realtor involved in the "transaction". If both parties involved are comfortable with the price, terms and all other conditions this type of situation can be valuable as well as practical. Often times many days of negotiation are eliminated and in some situations a discounted commission schedule is available.

The transaction broker is a viable option and should be considered in some situations. However, we do not recommend the transaction broker for First Time Buyers, Buyers that are new to Colorado regardless of the number of properties they have bought or sold elsewhere, or in any situation that requires complex negotiations, has unusual terms or conditions, has high value, creates risk or for 1031 exchanges.

Simply decide if you will be seeking Advocacy during the transaction. If your answer is "NO", a transaction broker is appropriate. If your answer is "YES", seek an exclusive agency.

Keep in mind that real estate laws differ from state to state and even from locale to locale. And within this framework of variety, laws can change. For more in-depth answers for your specific situation, talk with us and ask about local practices. We will be sure that you understand the options available when you engage our services.

It should also be noted that some complex real estate transactions may require more than "exclusive agency" from your realtor. Seeking counsel from a real estate attorney and a tax attorney may be appropriate and/or required. Under Colorado law realtors cannot give legal advice or tax advice and will advise you to seek other counsel regarding these matters.

Please read these definitions: (as written by the Colorado Real Estate Commision)