Which Agent Should You Call? [Think Twice]

To contact us Click HERE
by Osman Parvez
Here's your fun fact for the day.  

Let's say you pick up the phone and call a real estate agent to show you houses - by default, they're a Transaction Broker.   That's the standard position in Colorado,  assuming you don't sign a Buyer Agency agreement.   How about calling the listing agent (a.k.a. Seller's Agent) because you found their house online and want to see it?    You will now likely have either a customer relationship (the agent represents the seller exclusively) or Transaction Broker (the agent is supposed to be neutral).

All of this is disclosed in the Definition of Working Relationships (DD-25-5-04), a disclosure document real estate agents are required to give you at the first meeting.   Of course, a lot of agents are pretty casual about it and forget to provide this document, but that's a story for another day.

What does this mean?  From a legal perspective,  Transaction Brokers are supposed to be a neutral party.    They're supposed to assist you, per your instructions but they're not allowed to advise you on property selection or due diligence, nor are they allowed to advocate on your behalf in a negotiation with a seller.  If the seller accidentally mentions their bottom line price or motivations to sell, Transaction Broker are not allowed to tell you!    If they have an exclusive relationship with the seller (Seller's Agent), that means you're a customer and the agent's duties to you are even further limited.

This is the primary reason I strongly recommend Buyer Agency when I work with home buyers.   An exclusive Buyer's agent represents you,  they are required to disclose all information - even confidential information accidentally disclosed by the seller.    Their job is to advocate for you, negotiate on your behalf for the best deal possible, and represent your interests exclusively.   The extremely rare exception would be if my buyer wants to acquire one of my listings - an event which happened once during the last nine years.

The next time you're looking at homes online, think twice before calling up listing agent  This is one of the most important reasons to use the Internet to shop for a Realtor, instead of shopping for a house.   Once you find a good one, choose them to represent you as an exclusive Buyer's Agent.  If you shop for the house first, you will very likely end up with a Transaction Broker or worse as a Customer.

p.s. If you're curious about my performance, check out my reviews.

--- Note: Our goal is to provide exceptional service to our clients. The ideas and strategies in this blog post are the opinion of the writer at the time of publication. Silver Fern Homes recommends careful and complete due diligence before buying or selling real estate or other investments. Consult with your professional advisers before making financial decisions. This article is not intended as legal, tax, or investment advice. Silver Fern Homes will not be held liable for investment choices derived from this article.