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Kim, Other/Just Looking in

Buyers agent vs. transaction manager? What are the pros and cons?

Asked by Kim, Fri Nov 30, 2007

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Jim gives the text book version definition, which is very helpful. Something to note, in Northern Colorado, not all Real Estate Companies allow their agents to work as Buyers Agents so you'll want to make sure to ask your agent if they can work as such. The reason is that there is more liability to the real estate agent and company when acting as a Buyers agent. In my opinion, I prefer to act as a Buyer's agent because I can give you my opinion on price and what to offer, whereas a transaction broker isn't suppose to. It is important to note that a separate contract is required between you and your Realtor to solidify the Buyer's agency agreement, so if you don't execute this document you may not have agency representation. If you don't sign the agency agreement the default is working with a Realtor in a transaction brokerage relationship. I strongly believe it is important to work with a Real Estate agent who can act in your best interest and represent your needs. Especially when we are experiencing a Buyers market and prices are negotiable. It is in my humble opinion, that you hire a Realtor represent you. After all we show hundreds of homes every month, most of us work full time and know the value properties, and you should benefit from our experience and expertise. Isn't that one of the main reasons you work with an agent? Please be aware that there is no additional fee to have your agent work as a Buyers Agent or Transaction Broker because the seller pays their fee. If you are interested in talking with someone about this further, feel free to call me direct at 970-988-0242.
Kindly, Carrie Holmes
Coldwell Banker Residential Brokerage
1 vote Thank Flag Link Sat Dec 1, 2007
The Colorado definition is

Buyers Agent : A buyers agent works solely on behalf of the buyer to promote the interests of the buyer with the upmost good faith, loyalty and fidelity. The agent negotiates on behalf of and acts as an odvocate for the buyer...

Transaction Broker : A tranaction broker assists the buyer or seller or both throughout the real estate transaction by performing terms of any written or oral agreement, fully informing the parties, presenting all offers, and assisting the parties with any contract, including closing of the transaction, without being an agent or advocate for any of the parties...

This is all taken off of the "Definitions of Working Re;ationships" form from the Colorado Real Estate Commission.

What this mean to a buyer is simply that tranaction broker is not working for you as a client, but is just trying to get the deal to closing. For the most part, you want to work with someone that wants to be your agent, that way you know they are looking out for you, the buyer. Not just trying to get the deal to close to collect their commission. You as a buyer want to feel that your broker is on your side, and if they will only work a transaction broker, they are on everyones side, you have to wonder why?

Please feel free to call me with questions
Web Reference: http://www.altadenver.com
1 vote Thank Flag Link Fri Nov 30, 2007
I like working as a buyers agent because I can advocate specifically for the my client, the buyer. I can give my opinions and search for what is best for my client. A transaction broker is not allowed to give an opinion and is solely working to close the deal for buyers, sellers, and agents.
0 votes Thank Flag Link Tue Aug 27, 2013
There are no Pros to working with a Transaction Broker....in my opinion. They are not an advocate and are not on your side. That's BS if you ask me. Why wouldn't you want FULL service?
There is a reason the Real Estate Commission requires the Definitions of Working Relationships Disclosure....because brokers were and ARE blurring the line between the two. I have seen it, and it's an ugly but common place misrepresentation.
0 votes Thank Flag Link Thu Feb 21, 2008
Here is the simplest question to ask in regards to which agency you want;

Do you want someone advocating for your interest or not? For peace of mind be assured a Transaction Broker (TB) cannot deceive either party or hide any material defects but they won't be advocating for your best interest. Examples of advocating are given in the previous two responses.

And, yes there are agencies and agents that will only work in a TB capacity. As a consumer I would definitely ask WHY??? See if you are comfortable with the answer you receive from such agents and keep Carrie's answer in mind.

If by some chance you found/find a house without a buyer agent and go directly through the listing agent then one of two things occurs depending on the agents listing agreement with the seller. Either you become a customer and the listing agent only advocates for the seller or they become a Transaction Broker. The law assumes it is impossible to fairly advocate for and be loyal to separate parties in the same transaction, which is why if the listing agreement allows the agent becomes a TB.

The state of CO recognized many years ago that buyers need representation and gives you the right to a buyer broker to advocate for your best interest, so think carefully before you choose not to use an agency the state says you have right to.

Best of luck,
Susan Walker
0 votes Thank Flag Link Sat Dec 1, 2007
I have been a Realtor for 12 years now, and started practicing in Denver. I now live in Fort Collins, yet serve both cities. What I've found unique about Fort Collins is the Transaction Broker issue. Down in Denver, I rarely run into a T.B. - it's always Buyer's Agency. Up in the Fort, not the case. I learned in the classroom many years ago that the key difference between the two is that a Buyer's Agent has a "Fiduciary" Duty to his client, where a Transaction Broker does not. By definition - "A real estate broker who becomes an agent of a seller or buyer is deemed to be a fiduciary, ( trustee, executor, and guardian). As a fiduciary, a real estate broker is held by law to owe specific duties to their client, in addition to duties or obligations set forth in a listing or buyers agreement". So...there it is...the choice is of course yours. Best of Luck - Andy Burnett ERA 970-488-9391 andy@aburnettrealty.com
Flag Wed Jan 29, 2014
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