Mariana Wagner

Colorado Springs Real Estate Definitions: Types of Real Estate Agent Representation

If you are looking to buy or sell a home in the current Colorado Springs real estate market, having professional representation by a competent real estate agent is a must, but you need to understand the different types of representation available.

As someone looking to buy a home in Colorado Springs, this is important because unrepresented buyers WILL NOT get the best possible deal on a home. Read Also: Top 5 Benefits of Having a Buyer’s Agent Represent You.

As a homeowner looking to sell their home in Colorado Springs, representation is important because, historically a competent real estate agent will get you MORE money for your home – enough to cover their commission, and then some.

But what kind of representation is available for Colorado Springs home buyers and sellers?

In Colorado Springs (and all of Colorado for that matter) we have several different types of relationships between home buyers/sellers and us, the real estate agents. Here is a breakdown of the different “Broker Relationships“, so that when you decide to buy or sell real estate you are better informed.

• Seller’s Agent (listing agent): This agent “works solely on behalf of the seller to promote the interests of the seller with the utmost good faith, fidelity and fidelity. The agent negotiates on behalf of and acts as an advocate for the seller.” In other words, this agent is the Seller’s coach. Other than basic honesty, the Seller’s Agent owes the unrepresented Buyer nothing. Nada. Zip. Zilch.
• Buyer’s Agent: This agent “works solely on behalf of the buyer to promote the interests of the seller with the utmost good faith, fidelity and fidelity. The agent negotiates on behalf of and acts as an advocate for the buyer.” How a Seller’s Agent responds to an unrepresented Buyer is exactly how a Buyer’s Agent responds to an unrepresented Seller (FSBO= For Sale By Owner).

  When both a Buyer and Seller Agent are involved in a transaction, they communicate to each other on behalf of their clients. The Buyer should never have a reason to speak to the Seller. This is great because it removes deal-breaking “emotion” from decisions.

  Both Buyer and Seller agencies must be used when the agent is representing someone that they know – like a friend, family member or co-worker. The agent knows too much about the client to not act as their agent.

• Transaction Broker: This agent does not represent anyone in particular. “A transaction broker assists the buyer and seller in both throughout a real estate transaction by performing terms of any written or oral agreement.” Basically, their job is like a referee – no negotiating for either party.
• Customer: A customer is a buyer or seller who does not have any representation when buying or selling a home in Colorado Springs.

We build our business around being Buyer Agents for our Buyers and Seller Agents for our Sellers. We believe that it is too important to have ALL of your buy, sell and negotiate needs met and exceeded – which is not possible when acting as a Transaction Broker.

Read Also: Colorado Definitions of Working Relationships

Well, what happens when we list a house and an unrepresented buyer wants to buy it? Can we be a Buyer agent to the Buyer and a Seller agent to the Seller?

No. We can’t. In some states, that is allowed and it is called Dual Agency. Dual Agency is not allowed in Colorado because it is seen as a blatant conflict of interests.

How could we possibly represent one person’s interest to get as much money as possible for their home and simultaneously represent another person’s interest to pay as little as possible for the same home? It can’t be done.

This can play out in several ways:

• If we know the Seller very well and only know the buyer very casually, or not at all (maybe a friend of a friend), we can act as a Seller’s Agent for our seller and the Buyer would be an unrepresented customer. This is the most common approach that we use, as we feel it necessary to remain agents for our sellers. Of course, we are fair to the Buyer, but we do not represent their interests.
• If we know both the Seller AND the Buyer very well, it would be near impossible to consider only ONE as “representable” so we can do one of 2 things:
  • Become a Transaction Broker for both the Buyer and the Seller. We would step out fo the representation role and move into the role of just making sure the contract was written correctly, both parties had access to proper information and that it closed when and how it was supposed to.
  • Refer the Buyer to another agent. If we know both the Buyer and Seller so well that we could not realistically take off our “agent” hat (and that has happened), we will often refer the Buyer to another agent for representation in the transaction. We believe that it is more important for our friends and family to get comprehensive representation when buying a home in Colorado Springs, than it is to get both sides of a commission.

We, (the Wagner iTeam) take real estate representation VERY seriously. There is nothing worse than an incompetent real estate agent that puts commissions above commitment. When we represent our clients, we REPRESENT them. We always make sure that THEIR interests are above everyone else’s – including our own.

For more information on real estate agent relationships in Colorado Springs, you can reach us at: (719) 434-7525 or by email: [email protected]

Read Also:
Top Seven Questions To Ask Your Potential Buyer’s Agent
3 Easy Ways to Find a Buyer’s Agent to Represent You

January 19th, 2008 by Mariana Wagner | Leave A Comment

2007 Colorado Springs Real Estate Market Report: Annual Sale Price Data

Great News! Colorado Springs homeowners saw a healthy appreciation in 2007! The Colorado Springs real estate market saw an average sales price of $269,075. This is UP from the 2006 average sales price of $264,755. In fact, Colorado Springs has seen great appreciation since the MLS started recording data in 1994. The average sales price in Colorado Springs has jumped $100,000 since 1999!

Colorado Springs area neighborhoods with the HIGHEST sales prices:

• TRI (Tri-Lakes/Monument/Palmer Lake): $427,744
• NGT (Northgate): $399,094
• S/W (Southwest Colorado Springs/Broadmoor): $362,052

Read more information on the definitions of the different Colorado Springs MLS Areas and Boundaries.

Neighborhoods in and around Colorado Springs with the LOWEST sales prices:

• S/E (Southeast Colorado Springs): $139,897
• EAS (Eastern Colorado Springs): $180,767
• F/V (Fountain Valley/ Fort Carson): $180,523

Things are looking GREAT for Colorado Springs homeowners!

More from this Series:
2007 Colorado Springs Real Estate Market Report: Annual Days on Market Data
2007 Colorado Springs Real Estate Market Report: Annual Housing Inventory Data
2007 Colorado Springs Real Estate Market Report: Annual List Price to Sale Price Ratios

Read Also:  Existing-Home Sales Rise in November, Market Likely Stabilizing

January 4th, 2008 by Mariana Wagner | Leave A Comment

2007 Colorado Springs Real Estate Market Report: Annual Days on Market Data

Homes for sale in Colorado Springs sat on the market for an average of 89 days in 2007. The lowest days on market were in July, at 74 days. The highest DOM was in January (104) and December (109).

Although the 89 day average is up from 76 days in 2006, and higher than we have seen in a long time, it is still at the 3 month mark, which is good news for people who have a home for sale in Colorado Springs.

The Colorado Springs Real Estate market DID vary from neighborhood to neighborhood, regarding days on market. Let’s take a look at how each area looked in 2007:

Colorado Springs Neighborhoods with the Highest Days on Market:

The following neighborhoods in/around Colorado Springs had the highest days on market (DOM) for homes for sale:

• NGT (Northgate): 111 days
• MAN (Manitou Springs): 111 days
• TRI (Tri-Lakes/Monument/Palmer Lake): 102 days

Read more information on the definitions of the different Colorado Springs MLS Areas and Boundaries.

Colorado Springs Neighborhoods with the Lowest Days on Market:

The lowest DOM areas were found in the following Colorado Springs neighborhoods:

• N/E (Northeast Colorado Springs): 75 days
• EAS (Eastern Colorado Springs): 77 days
• S/E (Southeastern Colorado Springs): 79 days

The Colorado Springs real estate market is looking good, in regards to days on market. Some areas of the nation are looking at multiple YEARS before selling a home. If you can wait for about 3-4 months to sell your Colorado Springs home, then you’re in great shape!

More from this Series:
2007 Colorado Springs Real Estate Market Report: Annual Sale Price Data
2007 Colorado Springs Real Estate Market Report: Annual Housing Inventory Data
2007 Colorado Springs Real Estate Market Report: Annual List Price to Sale Price Ratios

January 3rd, 2008 by Mariana Wagner | 2 Comments »

Garden of the Gods – Colorado Springs

October 12th, 2007 by Mariana Wagner | 5 Comments »