Do you really need a buyer’s agent in Colorado to buy a home?
It isn’t unusual for me to get that question when someone is looking at purchasing real estate in Colorado, especially when a buyer is looking at new construction. But here are the facts.
In most all cases, a buyer does not pay the commission of their buyer’s agent. The seller does. So in the case of the first time home buyer, or out of state relocation, it may be tempting to try and go at it alone or use the listing agent, but that is not always the wisest choice. First of all, if the seller is paying the commission, then why do all the work yourself and still not be represented in the deal? Also, who does the listing agent work for? You got it, the seller and not you! Most times it is wiser to have an agent solely representing you and your best interest. Why put yourself through all the brain damage.
Of course we all know that a builder would love for a buyer not to have a buyer’s agent. In the case of new construction, the seller (builder) still pays the buyer agent’s commission. Who do you think the on site agent works for? And the transaction may be more cut & dry and seem like you may not need one. However, this is so often not true.
First of all, there are so many things that can happen that you will need a seasoned professional to help you navigate through – deadlines, options, re-sale considerations and of course the possible construction errors that may likely come up – those are just some examples, there are more. It is also not set in stone that the home price is the firm price in new builds. Builders are very good at creating a media frenzy of lotteries, lines and wait lists for new releases. But the fact of the matter is they are hurting right now and they will negotiate. You can often negotiate more than the incentives offered by the builders. You just need to know how to go about it. It’s not as straight forward as it may seem – perhaps you can negotiate on some upgrades, or the lot premium, maybe just have the landscaping thrown in.
In the end, if you can have professional representation that is usually paid for by the seller, why wouldn’t you? Someone mentioned to me once that they thought that they could do it all themselves and save some money (because the seller wouldn’t have to pay a commission. Which by the way, statistically almost never happens) I told them maybe, and I bet you could also cut your own hair or fill your own teeth!