WHO REPRESENTS YOU? One of the hot topics facing the real estate world right now is the issue of agency. Some would have you believe that it really doesn't affect you, the buyer, and that not much has really changed. They are wrong!
The question of agency is important to you as a buyer because it it answers the most basic and fundamental question that you can ask a real estate professional: Who do you represent in this transaction?
Until that question is answered, you may be left with the impression that all agents who work with buyers actually represent those buyers, and that you have someone going to bat for you in your transaction. Bad assumption.
Lets say you meet a really nice agent, Joe, and share with him what you're looking for and spend several hours on a Saturday afternoon looking at properties. During your conversation you volunteer that you have $250,000 to spend and not a penny more. You find the "perfect" house listed for $250,000 but decide to submit an offer of $225,000. During negotiations, the seller's broker asks Joe how much cash you have and how high are you willing go. Guess what, Joe has that information.
Now, in Colorado unless you have a signed "Buyer Representation Agreement" with Joe making him your Buyer Broker, Joe is most likely acting as a Transaction Broker and has no fiduciary obligation to you. Joe, if he chooses, can disclose the financial information you've given him to the other parties seriously affecting your negotiating position. As your Buyer Broker, Joe cannot disclose any confidential information and must remain your advocate at all times. Which position, as a buyer, do you prefer?
Make sure the agent you are working with has agreed, in writing, to represent you as a "Buyers Broker." We have a specimen of Colorado's Buyer Representation on our website HomesInDurango.com. Click on "Buying a Home." If you have any questions or need further information give us a call or email. We're here to help you.
http://HomesInDurango.com
http://DurangoRealEstate.biz
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