Because buying a home can be a complex and confusing process, establishing a working relationship with your broker is important for a successful transaction.
In the simplest of terms, establishing a brokerage relationship means signing an agreement to work exclusively with us, your brokers. However, our working relationship is far more than a contract—it is the key to finding the home that meets both your needs and your budget. To help meet this goal, this section explains what you can expect from us as your realtors®, what we expect in return, how we get paid, and what to expect from the transaction.
Whether buying your first home, or purchasing your fifteenth, every real estate transaction is always unique due to different people and different circumstances. What is always the same, is what you can expect from us, and what we expect in return. We have found the right homes for hundreds of families and will do the same for you. It is much easier for us to enjoy the process when we know each other’s expectations.
As Your realtors®, We Will:
· Be honest, sometimes candidly, and we ask the same in return. We encourage you to be candid with us, so that we can better serve you through the home-buying process and beyond. We want to know your needs and concerns. If something doesn’t feel right or if you feel that we’re not on the right track, please tell us immediately. Then we can move forward.
· Be 100% loyal to your interests and respect your specific needs. We know that life has many twists and turns. If we need to change plans, we will do that; we will ask the same of you. Life has a funny way of altering our day-to-day activities. We will be flexible with you, as again we ask you to be with us.
· Be available when you need to contact us, and to assist you in any way we can. We do not work 7 days a week or 24 hours a day but will work with you to see properties in a realistic time frame. As family is important to you, it is important to us. There will be plenty of time to see all the homes, make offers and negotiate in a reasonable workweek. This keeps us fresh and strong to do the important tasks ahead.
· Inform you about past, present, and anticipated market conditions in Colorado Springs, and educate you about the transaction itself from contract to closing.
· Review your financial qualifications and discuss possible options, and help you find the best available financing with a reputable lender.
· Discuss your property requirements including style, location, and price; show you any listed properties that meet your requirements, and let you make your own choices while presenting helpful information and options.
· Present any offer you wish to make, help negotiate terms, handle details, and notify you of deadlines and important contract dates as they approach. During this time, we need you to be available to sign and return documents, as well as provide necessary personal information for lenders, inspectors, etc., in a timely manner.
How We Get Paid
With the commitment we make to you with no up-front expense, a realtor® is one of the best values around. Hesitation to use our services only happens when clients do not understand the quality of service and fees absorbed by the service. It’s why we take the time to explain how a realtor® is paid. We want you to fully understand this part of the transaction.
On average, to get any transaction to the closing table takes between 60 and 80 hours of our time, although the hours can be as few as 20 or as many as 300. Regardless of the time required, the cumulative experience we bring is the greatest possible benefit you can have on your side in a real-estate transaction.
By tax code, we are independent contractors working for ERA Shields
Real Estate. This means ERA Shields oversees our actions and operations but does not dictate our real-estate business. We are not paid a salary, we receive no benefits, and we pay all our own expenses. With each transaction, we pay a portion of our commission to the company for office space, any referral fees that are applicable, state and federal taxes as well. Each transaction has unique fees associated with it, such as phone, fax, gasoline, marketing, technology fees, etc. We have annual fees as well, such as liability and automobile insurance. There are membership fees in Realtor associations, professional expenses for continuing education, and affiliation fees that provide considerable benefit to you in terms of quality of business experience, negotiating power and homes that you view. As small business persons, we also have other expenses such as assistants’ pay, assistants’ benefits and taxes, payroll expenses, professional accounting and auditing fees, as well as full payment for our families’ health insurance. The remainder of our fee is our take-home pay, also known as our profit.
Only when we close on your new home are we compensated. If there is no closing, we receive no compensation. Typically, the seller pays our fee/commission, which is a minimum of 3% of the sales price, via their employment of a selling agent. The fee may be higher for new homes or For-Sale-By-Owner properties. Please respect that we have a working relationship in which we do not receive payment without a successful closed transaction. This is our full-time profession, and our source of income.
It is essential that you allow us to introduce you to any home you might have an interest in—including new homes or for-sale-by-owner homes (FSBOs). Otherwise we cannot legally provide assistance or representation. Please do not pursue New Home Communities or FSBOs on your own as it may compromise our ability to collect commissions from the sellers. If you see a FSBO or New Home Community that you would like to explore, let us know right away so we can make arrangements and have discussions specific to the property. Sometimes a simple call ahead on our part to an individual we already have a relationship with (e.g. a new home sales representative) may reveal additional information, opportunities, and options!
What to Expect from the Transaction…
Because there is rarely one home that matches every item on your wish list, some compromise is required. The more homes you see, the more confused you may become. Let’s work together to narrow your choices to real, viable properties and neighborhoods. Once you’ve found a home, time is of the essence. Be ready to make a decision and make an offer to secure the property before another buyer comes along. On the other hand, because the process of making offers and awaiting acceptance can become competitive, resolution is not always immediate, and patience is often required.
Even though they are moving, sellers are often emotionally attached to their homes. Be prepared for unreasonable requests and lack of flexibility or compromise in some cases. At the same time, always put yourself in the seller’s shoes. Negotiating is anticipated, but understand that just like you, the seller is trying to make a reasonable profit on their investment when the market so dictates. Do not expect them to remodel their home or give it away. However, if they’re offering the Maytag Neptune washer and dryer…Super! Every deal is different, but reasonable expectations are vital.
A Note on Buyer’s Remorse
Buying a home can cause a great deal of stress. Once the realization sets in that you are under contract for a home and financially responsible for it, almost everyone has feelings of remorse and sometimes even panic, cold sweats or feelings of dread, and fear. Because the CREC will also not allow us to medicate you, we’ll need to deal with this in a more analytical, discussion-based treatment, and hope for an effective cure.
Humor aside, you’re about to spend a lot of money. Now is the time to open the conversation and get everything out in the open. The longer buyer’s remorse festers, the worse it gets, and the less enjoyable the experience.
Rest assured, that even if you are purchasing your 10th home, buyer’s remorse is normal. This feeling will pass, and you will soon find yourself wrapped up in the excitement of buying a home that will bring you enjoyment for many years to come.