I just created a Denver Home Buying Information Sheet

I created the following Denver Home Buying Information sheet to help answer some common questions regarding the Denver Home Buying process.


Common Denver Home Buying Questions

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Why do I need a Denver Realtor?

  • Denver Home Buying InformationTo coach you through the process / be your advocate

  • Market and neighborhood knowledge

  • Price guidance and negotiation

  • Help you avoid expensive pitfalls

How is a Denver Realtor paid?

  • Typically Sellers pay their Realtor a commission, which is split with the Buyer’s agent making the services of a Realtor free to the Buyers.

How long does it take to buy a house?

  • After finding a home and coming to an agreement on terms with the Seller, it typically takes between 30 & 45 days to complete the transaction.

What a is lender pre-qualification letter, when do I need it, and why do I need it?

  • A pre-qualification letter is provided by a Lender after an initial credit and income check, providing the Buyer with the maximum amount they can borrow to purchase a home.

  • A pre-qualification is needed prior to being shown homes by your Realtor

  • A pre-qualification letter is needed to prove to Sellers that you are qualified to purchase a desired home, and to ensure you are looking at relevant properties.

What is earnest money?

  • Earnest money is typically 1% of the purchase price.

  • Earnest money is held in escrow as collateral during the purchase process.

  • Earnest money will be credited as part of the down payment at closing.

What expenses will I have other than closing costs and the downpayment?

  • Depending on square footage and types of inspections the Buyer chooses, will determine this out of pocket expense.

Basic ~ $250+

Radon ~ $150+

Sewer ~ $150+

Mold ~ TBD

What is an Agency agreement?

  • A Buyer’s Agency Agreement is required by most Realtors, enabling them to work on your behalf and contracting that you are not working with other agents.

Find public reviews of Denver Realtor and real estate agent Christopher Gibson at the following locations:

Yelp Logo 150x150 Denver Realtor: Colorado Mortgage Lenders In And Around Metro DenverGoogle Places Logo1 150x150 Denver Realtor: Colorado Mortgage Lenders In And Around Metro Denver Zillow Logo 150x150 Denver Realtor: Colorado Mortgage Lenders In And Around Metro DenverLinkedIn Logo 150x150 Denver Realtor: Colorado Mortgage Lenders In And Around Metro Denver

See all reviews of Denver Realtor and real estate agent Christopher Gibson at http://denverhomesales.info/testimonials


A Buyer’s Denver Realtor Really is FREE for Buyers

I just added a page about why every Denver Home Buyer should hire a metro Denver Realtor with the following information.

Every Buyer Should Hire a metro Denver Realtor

Buyer’s Denver Area Realtors Really are FREE for Buyers

Many of us believe that if it sounds too good to be true, it probably is. The truth is that buyers really do get professional services for free.

Buyers who think they will get a house for a lower price when they contact the listing Realtor directly are assuming that the listing Realtor will pass on a commission discount to the seller. THIS IS NOT THE CASE! The listing Realtor already has an agreement with the seller and they will receive both sides of the commission if the buyer has no Realtor. There is much research, paperwork, and phone calling to complete, thus a smart Realtor would never represent both sides for one fee, and below is why:

How are Denver Area Realtors Paid?

Before we can talk about why it is a misconception that buyers pay more when they have their own Denver Realtor, you need to understand how Realtors are paid.

Almost all Realtors work on 100% commission. No salary, sick days, or health insurance.

Home sellers hire listing Realtors to help them sell their home. The Realtor charges the seller a commission on the total sale price, typically somewhere between 5-7% for a full service Realtor. Listing Realtor only get paid if they are able to get a contract on the home. If the home doesn’t sell, then the Realtor makes nothing.

Since there are thousands of Realtors, and thousands of buyers, the chances that the listing Realtor will actually locate a buyer for the home is slim. So, listing Realtors offer to pay a portion of the commission that they receive to the buyer’s Denver Realtor that represents the buyer who purchases the house.


A Buyer’s Denver Realtor Really is FREE for BuyersBut, it rarely is just a split between the 2 Denver Realtors. Most of the time, the Denver Realtors work under the umbrella of a brokerage. Both Denver Realtors split their side of the commission with their brokerage. Depending on the brokerage and the Realtor’s production level, the portion that the Realtor keeps is typically between 50-70% of their side of the deal (there are a few company’s that offer plans where Realtors can pay upfront fees and keep up to 95% of their commission).

1 Denver Area Realtor & 2 Clients Doesn’t Result in a Lower Sale Price

When a buyer calls the listing Realtor directly, some Realtors will try to talk the buyer into not using their own Realtor. The reason that they do this is obvious. If there isn’t a buyer’s Realtor assisting the buyer, then the listing Realtor doesn’t have to pay out a portion of the commission to the buyer’s Realtor/buyer’s broker. Many buyers assume that listing Realtors will reduce the commission charged to the seller if there isn’t a second agent…and thus the home seller can sell for a lower price.

Usually, this simply is not true.

There is a lot of work that goes along with assisting buyers after a contract gets accepted. When this work isn’t done, contracts can fall apart. Homes go unsold and Realtors don’t get paid. To make sure the deal closes, listing Realtors will add the buyer side details to their list of things to do when a buyer’s Realtor isn’t involved in the transaction.

Most listing Realtors don’t want to do all of that work for free. If they reduce the commission to the seller by the amount normally paid out to a buyer’s Realtor, then the listing Realtor does twice as much work for the same money.

What is Transaction Broker Agency?

Some listing Realtors will offer to assist the buyer while only representing the seller. This means that the buyer has no one advocating for their rights, since the listing Realtor is working for the seller. More often, the listing Realtor will offer to work under Transaction Broker Agency. Transaction Broker agency means that one Realtor represents both the seller and buyer in the same transaction. If you call the listing Realtor from an ad or off the yard sign, or walk into an open house, you will often be setting yourself up for the listing Realtor to try to talk you into transaction broker agency.

Why You Should Avoid Transaction Broker Agency

Whether you are the buyer or seller, having your Realtor represent the other side means that your Realtor cannot advocate for you in negotiations. Your Realtor can present options for you, but can’t help you decide which approach is most likely to get you what you want. Buyers and sellers don’t benefit from dual agency. The only people who benefit from dual agency are listing Realtors that keep the entire commission. And, it truly is hard to disconnect from their original allegiance to the seller.

How Do We Handle Transaction Broker Agency?

We don’t do transaction broker agency except in rare situations. When unrepresented buyers contact us about our listings, we offer to show the buyers the homes and explain that we represent the seller. We let the buyers know that they have 3 choices if they like the property and want to make an offer:

1. As a seller’s Realtor, we can assist them with the paperwork and the contract details just as a store salesperson can assist the people that are purchasing products from the store. We will be representing the seller and will encourage the buyer to accept the terms that the seller wants. By the way, this is exactly what new construction salespeople are doing when a buyer purchases a new home without a buyer’s Realtor.

2. We can refer the buyer to another good Denver Realtor that can act as a buyer’s Realtor and represent the buyer’s interests. We would much rather have a good Realtor of the other side of the deal, doing the work to make sure that the deal closes, than have a deal fall apart when an unprofessional Realtor fails to stay on top of contract details such as loan and appraisal contingencies.
3. The buyers can find a Denver Realtor on their own who can represent their interests in contract negotiations. If you discover a home through an ad or a yard sign, call an Denver Realtor that will represent YOU and not try to sell you on transaction agency.

Find public reviews of Denver Realtor and real estate agent Christopher Gibson at the following locations:

Yelp Logo 150x150 How much does a Denver Realtor cost for Home Buyers?Google Places Logo1 150x150 How much does a Denver Realtor cost for Home Buyers? Zillow Logo 150x150 How much does a Denver Realtor cost for Home Buyers?LinkedIn Logo 150x150 How much does a Denver Realtor cost for Home Buyers?

See all reviews of Denver Realtor and real estate agent Christopher Gibson at http://denverrealtor.co/denver-realtor-reviews-real-estate-agent-christopher-gibson/

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