Episode 1 ~ Finding the Right Agent for You
Agent, real estate broker = In Colorado, all agents are also brokers.Realtor = A broker that is also a member of the National Association of Realtors, which is a professional organization adding a layer of ethical and professional accountability.
Realtor = A broker that is also a member of the National Association of Realtors, which is a professional organization adding a layer of ethical and professional accountability.
Agency Capacity = All fiduciary duties are owed to the client, meaning this person’s job is to get the best price and terms for the client.
Transaction Broker = Permitted in states where non-agency relationships are allowed. These relationships vary considerably from state to state. Generally, the duties owed to the consumer in a non-agency relationship are less than the complete, traditional fiduciary duties of an agency relationship.
When hiring an agent what should they offer?
- Expertise in the areas you are looking to buy or selling
- Exhaustive research and searching power
- Strong negotiating skills
- Strong personal relationships within the industry and community
- Adhere to a strict code of ethics
- They’re your sage parent/data analyst/therapist—all rolled into one
Take your time, ask a lot of questions, and find a good agent that fits your needs. There are about 38,000 licensed agents in the state of Colorado and of that; about 7,500 of them are in the City of Denver.
How to get connected to the right agent?
- Ask around, talk to the people you know and trust, and see if they have an agent they can recommend
- You’re welcome to give me a call and we can see if we’d be a good fit, if not I’d be happy to help you find a great agent to fit your needs
- Check agent profiles on Realtor.com
- Visit open houses and meet some agents to chat with
When choosing an agent make sure to ask:
- What level of service do they provide?
- Are they a full-time agent or part-time, do that have another job?
- Are they a flat-rate or discount broker?
- What experience do they have in the area you are looking to buy in?
How do real estate agents get paid?
In most cases, the broker will be paid a percentage of the sale price at closing. I’ll walk you through this a little bit. As an example and for simple math we’ll use a sale price of $300,000 and commission rate of 6%. When signing the listing agreement, the seller and the listing agent agree to a percentage of the sale price to be paid to the buyer’s agent at closing. The listing agreement is the contract between the seller and the listing agent.
In this scenario, the commission will be 6% and the contract states that the listing agent agrees to pay 3% of the 6% commission to the buyer’s agent at closing on behalf of the buyers.
$300,000 x 6% = $18,000
3% of this is going to be paid to the buyer’s agent.
So, $9,000 is paid to the listing agent and $9,000 is paid to the buyer’s agent at the time of closing.