What is a Buyer’s Agent?
If you’re buying a home in Denver — or anywhere — you’ll want a buyer’s agent.
A buyer’s agent works solely for you, advocates for you and has your best interest in mind as the buyer. They aren’t working for the seller, nor are they trying to juggle both sides of the negotiation for one of the largest and most important investments – your home.
It’s smart to secure your buyer’s agent before you start home shopping. Your Thrive buyer’s agent will protect your interests, help you get the best deal, and generally make sure to keep the joy in the home buying process. Never let the complication of buying a home steal the joy!
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What Is a Buyer’s Agent?
A buyer’s agent is a REALTOR® who is ethically and legally bound to put the buyer’s interests ahead of all else in a real estate transaction. Your buyer’s agent is your partner in the home buying process — an ally who puts your interests above all others, even their own.
At Thrive, all of our advisors abide by the Buyer Agency Agreement provided by the Colorado Real Estate Commission. That means that when we’re representing you in buying a home, we work only for you.
A common misconception in the real estate industry goes like this: “If I don’t work with a buyer’s agent, I’ll be able to negotiate a better deal.”
In a nutshell, that’s just not true. The home sales process works this way:
Why Work With a Buyer’s Agent?
1. Listing agreement
The seller has a contract with the listing agent to sell the house. That contract stipulates what commission the seller will pay the seller’s agent, which also INCLUDES the commission amount meant to be shared with your buyer’s agent. Sometimes the commission is a reduced amount if there is no buyer agent – but it’s rarely half, and you won’t know for sure until it’s too late…ie. at closing.
2. Offer
You make an offer on a house. You negotiate with the seller’s agent, who’s job and responsibility is to get the highest price and best terms for the seller. If you don’t have a buyer’s agent, you’re on your own to navigate a 15 page contract, consisting of over 40 deadlines and provisions that must be executed properly. You can ask the seller’s agent questions, but remember, they work for the seller.
2. Offer
You make an offer on a house. You negotiate with the seller’s agent, who’s job and responsibility is to get the highest price and best terms for the seller. If you don’t have a buyer’s agent, you’re on your own to navigate a 15 page contract, consisting of over 40 deadlines and provisions that must be executed properly. You can ask the seller’s agent questions, but remember, they work for the seller.
3. Due Diligence
You have a period of time to confirm the house is functioning properly (roof, HVAC, electrical, plumbing, foundation, etc), make sure the title commitment is acceptable and that the HOA, if applicable, is one that you want to become a member of (bylaws, budgets, reserves, covenants, rules & regs, etc). If you find issues, you can negotiate price changes or other concessions. A great buyer’s agent can help guide you on how to get the most you can, how to protect yourself, and how to navigate the process – unless you don’t have one.
4. Closing
You pay the seller for the home, and the seller pays their agent a commission. If you have a buyer’s agent, the seller’s agent pays part of their commission to your agent as compensation for the work they did on your behalf. If you don’t have a buyer’s agent, the seller’s agent keeps all the commission.
4. Closing
You pay the seller for the home, and the seller pays their agent a commission. If you have a buyer’s agent, the seller’s agent pays part of their commission to your agent as compensation for the work they did on your behalf. If you don’t have a buyer’s agent, the seller’s agent keeps the commission.
Afterward, the seller is happy, because they sold their home with the commission expenses they were told by their agent. The seller’s agent is happy, because they made up to double the usual commission on the sale since you didn’t have a buyer’s agent.
The net result is that you, the buyer, effectively paid the seller’s agent to negotiate against you. Makes no sense, right? You don’t want that, and we don’t want that for you.
An excellent buyer’s agent will not only be your eyes and ears in the market, but will also advise you on what to look FOR and what to look OUT for.
At Thrive, we’ve been advising buyers for years through all types of transactions: single family homes, duplexes, condos, townhomes, lofts, land, commercial property, and more. The best part is, the seller’s agent pays for the services we provide to you. It is one of the few times in life where you get all the benefit, but none of the cost. Learn more about why to choose Thrive.