Home Buying in 80237>Question Details

majormsk, Home Buyer in Denver, CO

What is the standard buyer agency agreement length in the Denver Metro area? Holdover period length?

Asked by majormsk, Denver, CO Sat May 11, 2013

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Chuck Strauss’ answer
As stated below, it is all negotiable.
If your agent is asking for a longer period of time than you are comfortable with, then it is likely that you might want to keep looking for another agent, one that you feel confident will see you through the entire process; in today's market, with limited inventory, this can be a more lengthy time frame than in days when inventory is plentiful. This is a negotiable item, but it is important that both parties feel comfortable with this issue.
The holdover period is, in my opinion, fair. It simply protects the broker, making sure that they get paid if they are, indeed, the procuring cause for your purchase. Somewhere between 30 and 90 days is fair. And there is a clause that, if checked, protects the buyer from paying the agent a commission, even if in the holdover period, if another agent is getting commission for this transaction.
Best of luck.
Chuck Strauss
Your Castle Real Estate
720-318-7598
denverhomeguru@gmail.com
http://www.denverhomeguru.com
0 votes Thank Flag Link Sun May 12, 2013
As stated below, there really isn't a "standard"! Remember that a realtor is running a business and they can be flexible. I do 4 months as in this market things happen rather quickly. You can always do an amend/extend to the contract if you need the period to be longer.
I also don't do a holdover period, I have never used it in the 10 years that I have been in business. Hopefully you are just happy with the service I provide and I enjoy working with you as this relationship is a two way street!

Best of luck to you,
Bill Pearson GRI, SRES |"Your Denver Realtor For Life"
ERA Herman Group Real Estate| 201 Columbine Street| Suite 301| Denver CO 80206
720-329-1470 |Bill@DenverRealtorForLife.com
5280 Magazine FIVE STAR Real Estate Professional – 2010, 2011, 2012
0 votes Thank Flag Link Sun May 12, 2013
Agree with most answers below. Nothing Standard. Everything is negotiable. Like many stated, I usually go 6 months with a 90 Day Holdover. For my investors who are constantly looking for good deals, I sign them to annual renewing agreements. I provide them good deals on a constant basis and so they have no issue... in fact, they welcome it!
0 votes Thank Flag Link Sat May 11, 2013
NO Standard! Typical is 6 months but that is negotiable with your broker. Holdover period varies too, I usually do 60 days. Let me know if I can answer any more questions for you. Good luck!
0 votes Thank Flag Link Sat May 11, 2013
Be careful of brokers who don't use Buyer Agency agreements. The purpose of these is not to tie you to that broker against your will, it is a legal agreement for that broker to act in a fiduciary capacity on your behalf. Think of it as a limited employment agreement. You owe certain duties to your employee and your employee owes certain duties to you. The terms are always negotiable, but remember that you want your broker to have strong inventive to give you his or her very best efforts. I serve on the Professional Standards Committee of the Denver Metro Association of Realtors and am disappointed by some of the responses to your question.
0 votes Thank Flag Link Sat May 11, 2013
I don't use buyers agency agreements. If you like my work ethic & local re estate knowledge you won't likely leave. If you can't stand me (never happens) :) then you can fire me anytime. In fact, I am so confident in the way I do business, this is also the way I write my listing contracts. If we are not a good match we shouldn't be working together. Good luck!
0 votes Thank Flag Link Sat May 11, 2013
Majormsk,

In these type of Colorado Agreements, nothing is 'standard' or customary. Everything is negotiated and agreed at the time of signing during the buyer presentation meeting. I normally use 6 months as a time frame unles the buyer wants to come to another agreed time frame. That usually gives us time to find the 'right' home, although we have to be more motivated and diligent now that the home inventory is so historically low. If that doesn't work, we can always extend the time frame. As far as the Holdover period, i usually go with 90 days and also state that the buyer is not obligated to pay if they are working with another agent during that time. I have never had to have that enforced in my experience over many years. Good question and I hope that helps. if you are still interviewing agents let me know. We are here to ssist you with all of your real estate needs.

Robert McGuire
Broker/Consultant
Your Castle Realestate
http://about.me/robertmcguire33
0 votes Thank Flag Link Sat May 11, 2013
As everyone stated, I concur. The one thing to keep in mind when negotiating with your buyer broker is that you WANT this person to be committed to you. If commit to them (meaning they have a likelier chance of eventually getting some payment, as opposed to being a volunteer for you), they will spend time on you. When I have a committed buyer and a pre-appoval, I am running around previewing 20, 30, 40, 50 houses for them, so when they can go out, I'm only taking them to the 10 best homes. I am pro-actively staking out homes and pre-negotiating their position to best represent them. When I have a buyer agency agreement & my buyer is pre-approved, they're going to get the benefit of my market knowledge and my reputation in the real estate community as listing agents know I am not wasting their time. The longer you commit to your agent, the better and stronger commitment you should get from your agent. If a buyer wants a short-sighted contract, they may end up with a desperate, inexperienced agent who won't know what they're doing but is happy to take a lower standard from the public.
0 votes Thank Flag Link Sat May 11, 2013
There is no standard buyer agency agreement although it is not unusual to see six months. 60-90 days on holdover could be expected.

Michael Turner
Lead Properties
720 300 0889
0 votes Thank Flag Link Sat May 11, 2013
There isn't a standard. It is negotiated between you and your agent, as everyone's personal needs are different. Holdover can vary, but I typically do 90 days.
0 votes Thank Flag Link Sat May 11, 2013
There is no standard, you should be able to negotiate this with your broker.
0 votes Thank Flag Link Sat May 11, 2013
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