The Listing Agent representing the Seller will give you information about that property, yes. Disclosure of known defects in the property or financials attached to the property is required by law. The Seller's Agent has a fiduciary obligation to the Seller(s). A Buyer's Agent has fiduciary responsibility to the Buyer(s). The commisssion is determined by the Exclusive Right To Sell Agreement signed between the Seller(s) and the Agent/Broker they choose to represent them. Commission is paid at Closing whether or not the Buyer(s) choose to be represented. If the Buyer(s) choose to be represented, the Buyer's Agent will be paid out of the commission already negotiated by the Seller(s) and their Agent. This amount is usually half of the commission agreed upon. If the Buyer(s) choose NOT to be represented, the Agent/Broker representing the Seller(s) will check the "Unrepresented Buyer" box in the contract and take ALL of the commission.
Buying a home is one of the largest investments most people will make in their lifetime. The question is: Why would you make that investment without professional representation when it costs you nothing?

Wed May 21 2008, 09:11

Yes and no. First want to comment on the remark that 'buyers agents work for free'. If they are taking 2.8% from the seller then they aren't working for free- that is money that could have been negotiated down.
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Not if I'm the agent it isn't. Tom, do me a favor, you give away your own money, I'd like to hold onto the money I use to put a roof over my head. If your salary isn't negotiable, neither is mine.

Wed May 21 2008, 08:42

You are NOT required to use a real estate agent however there is really no reason not to. The reason I say this is a real estate attorney costs you money. A real estate agents fee to buyer is paid by the seller of the house you choose. A long time ago there was not such thing as "Buyers Agency". If you were buying a home you were on your own and would work with the agent who has the home listed. If you choose not to use your own agent the agent who has a home listed will still be representing you in a sence. The fee will be paid to a buyer either way. The disadvantage of that is since that agent is a "Dual Agent" they can only give you facts and they know the motive of the seller and the agents motive is to get as much as possible for the property. If you interview several agents and choose ONE agent to represent you then they have YOUR best interest and only yours. Also if you call around for info through several different agents and are not committed to one those agents will always try to "Sell" you what they have. It is very wise to look and see as much as you can yourself and do as much research as you can but real estate agents do this for a living and even if you as savy buyer have all the info you think you need there may be something you are missing and in that case it does not cost you a dime to have someone represent you. Hopefully that answers some questions, if not feel free to contact me with any more questions.

Wed May 21 2008, 08:34

Finding a home is only the beginning of the process. A good agent will help you see everything that fits your criteria, and maybe some things that will surprise you. The value in a good agent comes after you've found the house you want to purchase. A good agent will be on top of everything that needs to be completed to execute the contract, all of the deadlines and extensions etc. A good agent will keep your earnest money safe and protect your interests. They will help you make good decisions throughout the process and handle any problems that arise, as there are always problems.
In response to another answer the commission to be paid has been long established prior to you ever even seeing the home. It is foolish to consider that "up for negotiation". The commission paid to real estate professionals is paid by the seller. If they didn't want to pay a commission they'd probably by FSBO.
In closing buying a home is a legal transaction, protect yourself by having your own representation.
Good luck to you!

Wed May 21 2008, 08:23

Yes and no. First want to comment on the remark that 'buyers agents work for free'. If they are taking 2.8% from the seller then they aren't working for free- that is money that could have been negotiated down. If you are not a first time home buyer, know the area very well, know where to find comps and online records, you may be in a position to go it on your own. The online resources today give you so much information - you can even see how much the seller mortgaged the property for. I recommend going it on your own for a short while checking out all the open houses and for sale by owners. If no luck, get an agent. However - make sure you get an agent that will give you a rebate back. On the east coast there are several realtors that will rebate to you 2/3rd of their commission. i've also seen some in Colorado now offering the same.

Good luck!

Fri May 16 2008, 19:56

Having sold property in Johnstown, I am here to help. I know that area well. My last 4 sales were for 20-40 grand less than asking, like a good tax account I pay for myself. But what is really strange is you do not have to pay me, I am paid by the Listing agent. I work for free, and I promise you will be glad you called.

Wed Feb 20 2008, 20:43

There are literally thousands of resale homes on the market in Colorado..You could look yourself, if you like. But to find a nice home that meets your requirements, you need an agent to help you find it. Driving around on your own is o.k...but you are MISSING the nice homes on the market...get an agent to help you!

Wed Feb 20 2008, 16:07

Whew! Ouch! Well here is how I work- reason being I like my job and love my paychecks. Just like anyone else out there! If I had a listing and you came to me and asked me to reduce my commission so that you could buy the house. Answer- NO. The commissions that I make and are agreed to well in advance of listing the home with the seller and I. Well in advance before I met you. So... let's look at it this way which is really what is comes down to. When you do this- you have NO representation really. The agent (which in this case would be me) couldn't legally represent you and the seller at the same time. This is what we call "Transaction Broker" which in essence we default to if we are working with both the buyer and seller. You are correct in disclosure of information as you stated above. Legally, all parties agree to disclose adverse facts actually known about the property. Here is the kicker though- as a "Transaction Broker" I can't negotiate for you. Why? I have no duty to or the seller! I am there to fullfill the transaction, communicate between and help you and the seller come together to close the deal. But... if I had to do twice the work, twice the phone calls, twice the prepartion for closing, plus pay for all the marketing expenses for the selling the listing. Why in the world would I make less the the full commission. Now let's talk commission- if an agent is willing to reduce their commission by $2k fine- that is some money. Not a lot- but reasonable I guess...but for that you get no one on your side negotiating a lower price for the home. No one. Nadda. Nothing except you and the seller. Let's just pray that the seller isn't a sales person- right? So a Buyers Agent would have talked the seller down to say $5k below asking. Then you really didn't win anything did you? In fact, you paid $3k at the end of the day. Buyer representation is critical to your sucess. One their duty to negotiate terms that are acceptable to you the client- not the transaction. Do yourself a favor and go into a few offices. Interview a few buyers agents and try to negotiate with them. If they are willing to sell themselves down the river- why in the world would you want them to respresent you in your transaction. Being a pitbull sales person isn't the easiest thing to do- but when you find one REALTOR who is a fighter deep down. Use them for life! They will save you tens of thousands of dollars over the years. Don't be silly hire a professional who will treat YOUR money like their OWN!

Wed Feb 20 2008, 12:45

A Real Estate professional is not needed, however it is advised in today's market. If you go into a transaction you will need to know everything about the area,pricing,schools as well as the future plans for the area. A lot of that can be found on line however you will now have the other agent on the sellers side try you on. There will never be a way to know if you saved money or left money on the table. The Buyers agent does not cost a dime and in the long run run will save you money time and sweat

Thu Feb 7 2008, 08:39

I agree with Elvis. Whenever I hear a buyer bragging about what a great deal they got, I examine the deal and found many ways they got taken advantage of and did not even know it. This is true even when the seller gives them the buyer commission. By the time the deal gets to your attorneys desk it is already over- an attorney is not allowed to revise sales price and usually does not care too much (after all they are being paid $500 so the incentive is low).

Thu Feb 7 2008, 08:34

It always a good idea to use an agent to buy a home. The agent is paid by the seller and the cost is free to you. Like the walker group said, an agent that is working for you should take care of you and make sure you get the best deal on the home. If you approach the seller's agent you mostly wont get the best deal on the home. Why would you pay an Attorney to do the job a Realtor can do foe you for free?

Thu Feb 7 2008, 07:20

Your question is a good one and a lot of consumers have asked this question on Trulia. There is a lot of valuable input from both pros and consumers in regards to this question. I would advise you to look through previous threads on this issue to gain even more insight.

Yes, an attorney can definitely help and an attorneys advice is always advisable, but, very few attorneys are licensed agents that pound the pavement 24/7 looking at real estate allowing them to know the market inside and out.

Agents are going to be on top of current lending rates, first time home buyer programs, grants, local issues, etc... a good agent will be on top of their market and trends. They have access to data and information the public does not have. This is why they are considered an expert in the field of real estate. There is a reason millionaire real estate investors use agents and it is not just to write a contract.

One of the myths consumers believe is if they 'cut out' a buyer broker they will get a better deal. Unfortunately, that is not usually the case. The seller arranges to pay a commission to their agent upon the sale of their home. The sellers agent then offers to 'split' their commission with a buyer broker if they bring a buyer. Regardless of who brings the buyer the same commission is paid.

Now, the state of CO says you have the right to buyer representation and you will sign a mandatory disclosure (regardless of which agent you use) notifying you of this. When the state makes you sign a document acknowledging you are aware you have the right to your own representation it just doesn't make sense to me not to, with the exception of certain cases.

A buyers agents job is so far more encompassing than just writing a contract. If the sellers agent pays the buyers agent $3000 and that buyers agents negotiates $5000 less than you were willing to pay, advises you on current rates (which leads you to saving $2000 on your loan), hooks you up with a grant ($8000 free money) I'd say the buyers agent earned their keep ten fold.

Lastly, not all agents are good, so buyer beware. Do your homework. Interview and get references. Not all mechanics, doctors, attorneys, or real estate agents are any good or qualified. Find a great one and I think you'll be happy you used one.

Good luck to you both!
Susan Walker

Thu Feb 7 2008, 06:51

Colorado law allows for you to purchase without the use of an agent. Keep in mind however that the seller's agent represents the seller and is obligated to protect the seller's interest not yours. I often wonder why someone would not want an agent. A true professional buyer’s agent should know the market better then the average buyer or lawyer and will protect your interest in the biggest investment of your life all at no cost to you the buyer.

Wed Feb 6 2008, 22:06

I will use an extreme metaphor here: If a friend of yours got arrested, would you advise him to approach the district attorney directly to get all the information about the charges, his rights and the best way to negotiate and proceed through the court system? Or would you advise him to get his own representation?

Hopefully the D.A., who is a ethically bound to seek justice, puts justice ahead of a high conviction rate, power and ambition, and does right by the accused friend.. But what about the rare D.A. that puts ambition ahead of legal ethics?

Wed Feb 6 2008, 21:59