Buyer Broker Agreement – How can it help me?
Answers to commonly asked questions about Buyer Agents
Q: What is the big deal? I’ve bought homes before and everything seemed OK.
A: In years past, as a general rule, the agent who was working with the Buyer was actually supposed to be working for the Seller through the concept of Sub-Agency. When you thought that you had someone working on your behalf, you likely did not. Whatever you told the agent, he was obligated to tell the seller. (“We love this place. We would pay full price if we had to”, for instance) Everyone understands that the Seller IS represented in a real estate transaction……doesn’t it make sense to have the Buyer be represented as well?
Q: Who will pay for the Buyer Agent? I can’t afford to pay for the property and then pay a commission on top of that price.
A: Who pays the commission now? You might say the seller; but really it is the Buyer’s money that he is using. In spite of that, in Colorado, the law requires that the seller consent to part of the commission being used for a Buyer’s Agent. In our area, nearly 100% of the real estate owners/sellers have agreed to work with Buyer Agents. The total commission is simply split between the broker representing the seller and the broker representing the buyer. The seller isn’t affected at all, because it doesn’t cost the seller any more money to cooperate with a Buyer’s Agent. There may be a few exceptions to this, but when we sit down and go over that kind of contingency, we discuss how we can handle that possibility.
Q: What kind of things can a Buyer Agent do for me that would be of assistance to me?
A: Many people buying homes or property in Durango are from out of the area. Those Buyers would have no idea where certain local “problems” exist. For example, we have a couple of areas in the county where water wells are either notoriously low producers or of very poor quality. I can help with that. Let’s say you are moving here and bringing your horses with you. There is a section of the county where selenium is in the soil and that can be bad for your horses. I can help with that, too. These are just a couple of examples, but the list can be lengthy, depending on your requirements.
Q: I am from out of the area. How can I know that the agent I select is competent and can work well with me?
A: First you might start by looking at his or her credentials. I have mine posted on this web-site. Of particular importance is the fact that I am one of only 2 brokers in our county with the ABR professional designation. To earn the Accredited Buyer Representative designation takes course work, a certain number of documented buyer agent closings and the desire to specialize and excel in an area that only 1.6% of the Realtors nationwide have been able to attain. I have been doing Buyer Agency since the early 1980’s….long before it became fashionable or even fully accepted by the National Association of Realtors. I have years of experience representing buyers.
Q: How is my experience with Rick Lorenz as my Buyer Agent going to be different?
A: I can’t speak for all Buyer Agents, but as for me, the process starts with a thorough “interview” focusing on your wants and needs in real estate. What is your lifestyle and how might that affect the type of home you buy? Do you have oversized pieces of furniture that we need to pay special attention to in order for them to fit in your new home? What about the kids….do they want to raise some 4-H animals?…..not every subdivision will allow that. One story? Two Story? Three bedrooms? Family room or Great room? Fixer-upper? Have you ever heard of a buyer who said they absolutely had to have a 3 bedroom ranch and ended up with a 2-story 4-bedroom? A thorough interview could have revealed what they REALLY wanted was a master bedroom on the main level and where the other bedrooms were located was secondary. A good interview is critical.
Armed with a complete list of criteria, I can then go into the marketplace and locate those homes or parcels of land that best meet your needs. At the same time I can eliminate those properties that are a bad fit. Your time is valuable. Why spend it looking at properties that as soon as you walk in you say “No way!” or worse yet, you say that when you drive-up and then refuse to go in?
I would not begin to tell you that I have been in every home in this county. But I will say this: ” With 27 years of real estate experience, I have been in a ton of them.” Knowing the market is just as critical as a good interview. Maybe I know a home that fits your criteria, but it is not currently for sale. I can help.
Lastly, I work closely with a team of affiliates that has as a goal “Make Rick’s client’s transaction go smoothly.” Over the years, I have developed strong professional relationships with title companies, top notch lenders, escrow companies, insurance companies, home inspectors, real estate attorneys and even engineers if the situation warrants it.