Greetings from Breckenridge,

 

As promised, I would like to provide some advance information regarding Buyer Representation.

 

The recent NAR regulations are focused on enhancing transparency around how compensation and commissions work in real estate transactions. I believe this is a positive step and aligns with my longstanding practice of ensuring my clients are fully informed.

 

As your dedicated buyer’s agent, my sole responsibility is to represent your interests throughout the process. This includes securing the best price, expertly navigating negotiations, and helping you understand the true value of any property.

Traditionally, seller compensation has included fees for both the buyer’s and seller’s agents, and I anticipate this will largely continue. This means you receive professional representation without incurring additional costs. Particularly in luxury real estate, where attention to detail is critical, having a skilled agent on your side can make a significant difference in making a sound investment versus overpaying.

 

My goal is to help you find the ideal property while safeguarding your financial interests. I am fully committed to guiding you through the market with confidence and ensuring you receive the best value. It is also important to note that my business model is based on a success-fee structure. Neither buyers nor sellers are required to pay anything until a successful closing occurs. As your trusted advisor, I take on all responsibilities and time commitments with no guarantee of payment unless the transaction closes.

 

Under new regulations, I am required to have one of two documents signed by all buyers before showing any property. These documents are similar to those used previously, but now include specific details on how I will be compensated. 

 

The two documents are:

 

  • Exclusive Right to Buy Listing Agreement (Buyer Agency)
  • Brokerage Disclosure to Buyer

 

The commission agreed upon in these agreements represents a ‘worst-case scenario.’ My intent is to have the seller cover this compensation through the contract process. If the seller does not offer a buyer co-op, we can request that they include our fee as part of the offer. As of August 15, the Colorado purchase contract has been revised, and Section 29 now explicitly outlines the compensation amount and the party responsible for payment at closing. Importantly, buyers are not obligated to pay any fees until they sign the purchase contract. Our goal is for the seller to cover these costs, by checking the appropriate box in Section 29.1.

 

Additionally, please note the following new mandatory requirements:

 

  • Seller compensation offered to buyer’s agents is no longer visible in the MLS.
  • Compensation from sellers to buyer’s agents is still allowed but can only be viewed on the listing broker’s website or through other non-MLS means.

 

As your Buyer’s Agent, I am committed to providing you with the highest level of advice, counsel, and professional service. If we identify a property where seller compensation is not offered, we can still structure the purchase contract to have the seller pay the commission. Section 7.3.1 of the Buyer Agency Agreement or the compensation section of the Brokerage Disclosure to Buyer are the only ways you can formally instruct me to structure the purchase agreement this way. Without this selection, I am not legally permitted under Colorado law to request that the seller pay my fee.

 

I hope this explanation clarifies the current landscape surrounding buyer and seller compensation.

 

Best regards,
James