Buying a Home in Highlands Ranch
The first step in buying a home in Colorado is to understand the State 'Law of Agency'. Click here to see the Colorado Real Estate Agency descriptions.
Per Colorado Real Estate Law of Agency;
Listing (selling) brokers have an Agency (Fiduciary) responsibility to negotiate on behalf of the seller only - and to get the highest price for the property listed. Thus, they are paid directly by the seller to do just that. If you deal direct with the listing broker his legal responsibility will be to get the best deal for the seller - not you.
Buyers have the opportunity to be represented by a formal 'Buyers Agent'. This creates an even playing field where the buyer has a knowledgeable agent on their side to negotiate all the terms of the contract. Even though the Buyers Agent commission is paid by the property owner, they have the fiduciary responsibility to get the best price and terms for the buyer. In the complexities of negotiating the sales contract the Buyers Agent can identify the areas where price and terms can be effectively negotiated. Click here to see the Colorado Buyers Agency Agreement.
If you are selling your home and then purchasing a new one you can use the same broker. They would represent you as a 'seller' on one transaction (selling their old home) and at the same represent you as a 'buyer' on a different transaction (buying a new home). This is done by having 2 separate agency agreements - one for each transaction. Often, a skilled Realtor will negotiate a reduced commission to handle both transactions. NEVER forget to ask !
There is a saying in legal circles; 'The broker is not your friend'. Brokers are highly regulated by the Colorado Division of Real Estate. They have very specific duties and responsibilities when they operate under the 'Law of Agency'. So, the broker can be a good guy (or not) but what what makes them great is how they negotiate a deal and properly represent the interests of their clients. Some Realtors I've worked with are a bit rough, but they can be great negotiators. Some only care about getting something under contract as quick as possible. Work with someone you can trust - not just someone you like. There are many sad stories about the relative with a brokers license...
When you are ready to buy a home give me a call. We can discuss the available properties and work to negotiate the best possible price and terms the market will allow.