Buyer's agents offer additional resources for homebuyers

STEAMBOAT PILOT & TODAY

Buying Agents

For homebuyers interested in reducing their risk and receiving specialized service when purchasing a new home, exclusive buyer’s agents offer an alternative to services offered by traditional real estate agents.

Exclusive Buyer’s agents can help homebuyers locate property, provide detailed research and complete real estate transactions. Unlike traditional real estate agents, buyer’s agents represent homebuyers exclusively and not sellers.

“With a buyer we don’t take any listings so there’s never a conflict of interest with who we represent,” said Doug Labor, owner of Buyer’s Resource Real Estate of Steamboat Springs. Labor has been a real estate professional since 1984 and is President of the Steamboat Board of Realtors and President of the Colorado Exclusive Buyer Agents Association. 

When an agent has a property listed for sale, the agent is contractually obligated to represent the seller and get the best price and terms for the seller, Labor said.

In the best case for the buyer, the agent could act as a “transaction broker” in which they would not represent the buyer or seller, but would only facilitate a transaction, he said.

“The real estate agent’s liability is reduced, and consequently so is the service each side of the transaction receives.  Often times the agent will receive both the selling and buying sides of the commission in this situation,” Labor said.

“I would be very cautious entering into this type of relationship.”

Labor said buyer’s agents develop an exclusive relationship with their clients. They research Multiple Listings Service properties as well as unlisted and “for sale by owner” properties to provide clients with as much information as possible to aid them in finding the perfect property, then assist in negotiating the lowest price and best terms for the buyer.

Buyer’s agents will preview the condition of properties and report detailed information back to their clients. The agent also negotiates offers and advises their clients on the home inspection process, as well as other items the buyer should be concerned with.

Homebuyers sign a written agreement with a buyer’s agent that defines the terms of the relationship, including how long the agreement will be in effect. Buyer’s agents are typically paid a commission at the sale of a property.

Labor said the benefits of using a buyer’s agent are catching on and people who have used buyer’s agents in the past tend to use them again when they look for second homes in destinations like Steamboat Springs.

“I think for people who have experienced an exclusive buyer’s agent, they actually end up seeking one out when they purchase second homes,” he said. “It provides 100 percent protection to the buyers with their interests at heart, and typically, there is no cost for using an exclusive buyer broker.”