How do I know if I have the right real estate agent?

First and foremost, the agent should listen to you and understand your needs very clearly. Your caution lights should go off if the agent only shows you their own listings, even though the listings aren’t located in the neighborhoods that you like, and are bi-levels, but you told the agent you like ranches.

Second, your agent must have in-depth, up-to-date market knowledge of the specific area(s) that you like. Do you feel like you know more about the market than your agent? If so, RUN, and RUN fast! Unfortunately, many folks end up working with their “second cousin’s best friend’s sister-in-law” who is “giving real estate a try.” This situation is not uncommon, and surprisingly, ends up happening to intelligent, diligent people who spend more time researching the purchase of a $400 airfare than they do researching an agent to help them purchase a $400,000 home. The caution lights go off when they begin to realize that their agent and “friend” has never actually transacted on a property in the market where they are looking, and might not have the market knowledge or experience required to help them make a sound decision for the biggest financial transaction of their lives.

If you are looking for a four bedroom home in Highlands Ranch, your agent should know that market like the back of his or her hand. Which Richmond models have four bedrooms? Which models are holding their value best and are in highest demand? What four bedrooms came on the market in the past two weeks and are they well-maintained and realistically priced?

Lastly, your agent needs to bring more to the table than the combination code to open the lock box. They should act as an advisor, not just a door opener. Even in the age of the Internet, we have found that when a knowledgeable agent listens to and understands the needs of their client, the agent, not the Internet, will ultimately be the one who finds the client’s dream house. Quite simply, your real estate agent should be an expert in the areas where you are looking, and you should not settle for anything less!

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What is the difference between a “broker,” an “agent,” and a “REALTOR”?

In Colorado, all agents are licensed brokers. Only agents who are members of their local association and the National Association of REALTORs can call themselves REALTORs. REALTORs adhere to a code of ethics. All COhomefinder agents are REALTORs, as well as licensed brokers in Colorado.

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What is the difference between a “Buyer’s Agent” and a “Listing or Seller’s Agent”?

A Buyer’s Agent works for the buyer. The Buyer’s Agent job is simple: to find the best home for their client and to negotiate the best price and terms to purchase this home. On the other hand, a Seller’s Agent, or Listing Agent, works for the seller. A Seller’s Agent is legally obligated to try to get the highest price and best terms for the seller. A Seller’s Agent is also obligated to tell their client, the seller, everything they know about you, the buyer, including how much you can afford to pay.

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My brother-in-law told me that his milkman’s wife is a real estate agent, should I use her?

There are literally thousands of real estate agents in Colorado, so the odds are pretty good that you know someone who knows someone who knows a real estate agent. Working with an agent who is a friend, or a friend of a friend, may end up being a great experience, or a costly mistake. This type of referral can often be the worst agent for you. If your basis for choosing a real estate agent is to make a friend or a relative happy by providing a commission to one of their friends, go with their recommendation. If your criteria for choosing an agent is experience, deep market knowledge of the exact towns/areas/neighborhoods that you are interested in, and superior service, choose a true professional like a COhomefinder REALTOR.

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Is experience an important consideration when choosing an agent?

YES, YES, YES. As more and more home buyers go to the Internet to start the home buying process, they often peruse many different websites, coming across many different agents in their web travels. Many of the agents online are relatively new to real estate.

Carefully check the background of any agent you are considering working with. We recommend that you only consider agents who have represented clients in a minimum of 50 real estate transactions, and no less than 10 transactions in the previous year. Otherwise you risk making a mistake that could cost you thousands of dollars or expose you to litigation, simply because your agent did not have enough experience to advise you of the inherent, but manageable, risks associated with a real estate transaction. In short, real estate is a bit like open heart surgery - you want a professional who has “been there, done that!”

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How important is it to work with an agent who knows the areas where I am looking?

Extremely important. You don’t want to find out later that about any surprises or overpay for a property. A local expert who has worked the market for years will know the “ins and outs” of a neighborhood- the schools, pricing trends, historical appreciation rates, and they will know whether or not a specific property is realistically priced or may present resale problems down the road.

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Are all real estate agents the same?

NO! Many real estate agents are part-time agents that close 5 or 6 real estate transactions a year. They typically work with clients who are referred by “friends of friends,” taking on business wherever they can find it, never acquiring deep market knowledge. Many of these types of agents are very nice people, but they may not know anything more about a given real estate market than the average person on the street.

Then there are the true professionals. These agents are full time REALTORs that close at least 12 transactions a year, have advanced training and designations, and know specific markets cold. Because they are involved with a large number of transactions, they live and breathe a market, getting to know the inner workings of the market. They learn to avoid the potential pitfalls that can cost their clients thousands of dollars. COhomefinder REALTORs are all full time professionals that meet these criteria.

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