Frequently Asked Questions
About Using a Buyer's Broker in Colorado

Q. Who pays a buyer's broker?

A. The seller or listing agent, just as in most real estate transactions.

Q. Can any real estate agent be a buyer's broker?

A. Yes, but as in hiring any professional, training and experience
are extremely important. I have had extensive training and 18 years
experience as a buyer's broker here.

Q. Is a written buyer broker agreement required?

A. Yes, it is required by the Colorado Real Estate Commission.
It outlines my duties to the buyer, and discusses how the agency
relationship works. It is very similar to a listing agreement to sell a
home. (I would be happy to email you a copy of it.)

Q. How long is a buyer agreement for?

A. It can be for any length of time, from one day to a few months.
Most clients like it from 60 to 90 days, but any time frame is fine.

Q. Would the agreement be just for the area you work in?
Does it cover all properties?

A. Yes. I only work in Northern Colorado. It deals with all resale
properties and new construction.

Q. How about "for sale by owners?"

A. The buyer broker agreement covers all properties, whether they
are listed or not. Most sellers welcome a professionally represented
buyer.

Q. Do you change a retainer or hourly fee?

A. No.

Q. How can you help us get the best price when you are paid based
on how much we spend?

A. I work just as hard for a client buying a $70,000 condo as I do for
one buying a $600,000 home. It is my job to get the best price for my
clients, and I do everything I can to accomplish that.

Q. Do we owe you anything if we don't buy a home?

A. No. I am paid only when there is a successful closing.

Q. What if we sign an agreement, and later decide we don't want a
buyer's broker?

A. I put right in the agreement that if a client is not satisfied for
any reason, I am happy to cancel it.

Q. Do you also list property?

A. Almost all of my work is exclusively with buyers. I list a few
properties each year for former clients who want me to represent them
as sellers. Of course, I would not sell my listing to a buyer I represent.

Q. Is there a conflict or dual agency if we buy a home listed by your
company?

A. No. I represent my buyers' exclusively, and it makes no difference
if the listing agent is in my office.

Q. Do you accept bonuses or incentives from anyone to sell a
property?

A. No. I delete the part of the Buyer Broker agreement that allows for
the payment of additional compensation, bonuses, and incentives. I
feel it would be a conflict of interest, and I give any incentives offered
to my buyers.

Q. If you refer us to someone, such as a lender or an inspector, do you
take a kickback or referral fee of any kind?

A. No, absolutely not.

Shelby Majors, ABR, CRS, GRI, eCertified, e-PRO

Prudential Rocky Mountain, REALTORS
Toll free-1-877-858-7106
Direct 970-482-8561
Cellular 970-690-9372
Fax 970-482-3972

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Created and maintained by Shelby /updated June 13, 2010. Copyright © 1999-2010.