It is sometimes hard for buyers and sellers to contain their excitement when it comes to buying or selling a home. Sometimes they feel they are doing the broker or agent a favor by not bothering them and contacting a broker or buyer or seller directly. Believe it or not you are not doing your broker a favor or saving them time. One of the worst things you can do during any real estate transaction is to contact the other party directly. For starters most contracts you enter into with a broker, on the buy or listing side, usually has some sort of clause in it that says buyer or seller will use the agent as the “middle man” or something to the effect they will let the agent handle all communications with the other side. This only makes sense. Attorneys are not allowed to contact the other parties directly in a criminal or civil case. Buyers and sellers must understand the other side (usually unless under transaction agency) is not your friend. The other broker has a fiduciary responsibility to their client. That broker’s job is to get the maximum amount of money and make the contract as beneficial to their client as possible.
There is no dual agency in Colorado only transaction brokerage
In the state of Colorado there is no such thing as dual agency. Meaning a broker can never advocate and have fiduciary responsibility to both parties in a real estate transaction. The best a buyer and seller can get from having the same agent is a transaction broker. The definition of a transaction broker is an agent that can not advocate for either side. They are only allowed to present raw data and facts either party. They should never say something like “you should take that offer it’s a good offer” or “you should offer X amount for that property.” So it would make sense for a buyer and a seller to have their own advocate in any transaction.
A Realtor is trained to ask the right questions
Realtors are trained and know what to say to the other side. It is there job to help a buyer or seller. Realtors do this stuff all day long. Even though you might think you know how to handle a real estate agent, the truth is Realtors are a different breed of people. Realtors know exactly what they can and can’t say. They will sometimes leave things out of a conversation that another Realtor would never let them leave out.
You might unknowingly tip your hand and weaken your negotiation standpoint
Another thing your Realtor should know is how much information to give to another agent about your qualifications to purchase a home without giving out too much information. When talking to another agent you are being qualified without even knowing it. If a buyer accidentally gives out too much information, like how much you are pre-qualified for a mortgage, you are already telling the listing broker what your top line is. If a buyer tells the listing broker the price point of other homes you looked at and they are more than the home your are discussing, it is telling the Realtor you might pay full price for this listing because it is less than what you have previously looked at. There are so many reasons, actually too many to list, that a buyer and seller should not contact the other broker and absolutely under no circumstances should they contact the buyer or seller at anytime before or after going under contract. If the two agents feel it is ok and no damage can be done they might suggest speaking together if it is something the agents can’t or won’t act as the middle man for.
Let your Realtor do the work
Real estate agents make a good deal of money. Let them do their job and earn their commission. They are trained to do all the things that need to be done in a real estate transaction. You might actually cost yourself money or hurt your real estate deal if you get involved. Let a trained and professional Realtor take the helm and get the deal done. A buyer and seller have enough to do on their end to get ready for the move. Let the real estate agents handle the the transaction part.
Call 303-835-9895 or 303-503-8793 to contact an Orson Hill Realty Realtor today