<title> Colorado mountain property ranch real estate buyer’s agency real estate broker<title>
BUYER’S AGENCY FOR MOUNTAIN RANCH PROPERTY BUYERS
By Gary Hubbell
Associate Broker
Needlerock Mountain Realty & Land
970 921 5588
970 988 2122 cell
Colorado ranch real estate buyers should know that there are tips and tricks to buying ranch real estate, horse properties, hunting and fishing properties, cattle ranches, and vacation homes. It helps to have a broker solidly on your side.
In Colorado, brokers have four choices of how to represent real estate clients: buyer’s agent, seller’s agent, transaction broker, or customer. What’s the difference?
SELLER’S AGENT When a broker lists a property for sale, he or she typically chooses to represent the seller as a seller’s agent. That means that the broker is contractually bound to offer all assistance to the seller, including offering advice to the seller on the terms and conditions of a sale, tendering all offers to the seller in a timely manner, and generally acting in the best interests of the seller.
BUYER’S AGENT When a buyer is looking for property, a buyer’s agent is contractually bound to represent the best interests of the buyer. As a real estate buyer, that means you have a broker solidly in your corner looking out for you. A buyer’s agent is duty bound to make sure you drive the best possible bargain and advise you through the buying process.
TRANSACTION BROKER What’s this? Well, a transaction broker is a real estate agent who simply helps put the deal together. He isn’t bound to advise his clients; in fact, a transaction broker can work both sides of the deal! He can legally be both the listing agent and a selling agent on a transaction, which means he or she typically earns both sides of the commission on a sale. Many times a Colorado broker will write a contract whereby he is the selling agent on a listing, unless a buyer comes to him and seeks to purchase the property. At that point, he becomes a transaction broker for both parties, advising no one, but simply putting the deal together for both parties—and earning a hefty commission.
Incredibly, some brokers choose to act as transaction brokers even when representing only the buyer’s side of the deal. Why? “They think they’re limiting their liability if something goes wrong in the purchase,” one broker told me. If, for example, the well inspection report said the well produced 15 gallons of water per minute and it only produced 10, the broker would be “off the hook” if a buyer sued for misrepresentation on the amount of water the well produced. It would be the buyer’s responsibility to conduct your due diligence for every aspect of the purchase, with no advice from your real estate broker.
CUSTOMER In other words, “caveat emptor”, or “let the buyer beware.” If a broker is representing a seller as a seller's agent, and you see his sign on the property and give him a call, he might treat you as a customer. That means you have to do all your own research and find out any deficiencies about the property on your own. The broker is solidly in the seller's corner, yet he stands to collect both sides of the commission.
I don’t think that’s right. When you’re making a major purchase such as a Colorado cattle ranch, an outfitting business, a horse property, or a Colorado vacation home, you deserve good representation. You want someone there to explain about water rights, trespass rights, BLM or US Forest Service grazing permits, hunting leases, access issues, timber rights, and all the pertinent questions relating to your transaction.
Buyer’s agency is a two-way street, however. Some real estate agents will ask you to sign an exclusive buyer’s agency agreement, so that you will work with only that broker when you’re looking for property. That’s only fair. Many brokers will work hard to find the ideal property for you. If you’ve spent two weeks touring the area with a broker, looking at dozens of properties, it’s not a good idea to switch brokers at the last minute because you met another broker with a good sales pitch. In fact, such last-minute changes of brokers can cause great difficulties between real estate agents and brokerage companies.
That’s why you must carefully choose the broker who represents you. If you’re looking for a suburban tract home in Colorado Springs, there are hundreds of brokers who know that market. If you’re looking for commercial property in Grand Junction, other brokers know the market there. However, good ranch real estate brokers are few and far between—and you’ve found one with me.
I offer buyer’s agency to the clients I represent. You choose to work with me because of my knowledge and expertise, not because of my cowboy boots or winning smile. You want me to represent you because of my knowledge of Colorado ranches, horse properties, cattle ranches, outfitting businesses, dude ranches, ski vacation homes, Aspen real estate, and agricultural properties. I will be your tireless advocate and I will do my best to properly advise you so that you will be happy with your purchase.
Of course, any real estate transaction is best reviewed by legal, tax, and accounting professionals. Ranches often have unusual title and tax issues. Knowing the right team of experts is a big plus for your transaction. Water lawyers, hydrologists, geologists, range specialists, mineral rights attorneys, custom farmers, are all a phone call away.
Gary Hubbell
Ranch Real Estate Broker
Associate Broker, Needlerock Mountain Realty & Land
Crawford, CO 81415
970 921 5588
970 988 2122 cell
