Each state has different rules of agency with regards to Real Estate. In any transaction it is very important to know the relationship between you and the Realtor you are working with.
In Colorado there are 3 possible relationships and one “non-relationship”. They are: Seller’s Agent, Buyer’s Agent, Transaction Broker and Customer.
As you read through the definitions below, there is one key sentence that for me explains why you want to have a Buyer’s Agent assisting you with the transaction.
“A buyer’s agent works solely on behalf of the buyer to promote the interests of the buyer with the utmost good faith, loyalty and fidelity.”
This is the only option that clarifies that the agent has a “fiduciary” duty towards you and on most occasions, this representation will not have any additional cost to you!
Since a signed agency agreement is a legally binding contract, the only person who can explain the nuances of the different choices is an attorney.
Here are the definitions of these different options from the Colorado Real Estate Commission Form:
Seller’s Agent:
A seller’s agent (or listing agent) works solely on behalf of the seller to promote the interests of the seller
with the utmost good faith, loyalty and fidelity. The agent negotiates on behalf of and acts as an advocate for the seller. The seller’s agent must disclose to potential buyers all adverse material facts actually known by the seller’s agent about the property. A separate written listing agreement is required which sets forth the duties and obligations of the broker and the seller.
Buyer’s Agent:
A buyer’s agent works solely on behalf of the buyer to promote the interests of the buyer with the utmost good faith, loyalty and fidelity. The agent negotiates on behalf of and acts as an advocate for the buyer. The buyer’s agent must
disclose to potential sellers all adverse material facts actually known by the buyer’s agent including the buyer’s financial ability to perform the terms of the transaction and, if a residential property, whether the buyer intends to occupy the property. A separate written buyer agency agreement is required which sets forth the duties and obligations of the broker and the buyer.
Transaction-Broker:
A transaction-broker assists the buyer or seller or both throughout a 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 contracts, including the closing of the transaction without being an agent or advocate for any of the parties. A transaction-broker must use reasonable skill and care in the performance of any oral or written agreement, and must make the same disclosures as agents about all adverse material facts actually known by the transaction-broker concerning a property or a buyer’s financial ability to perform the terms of a transaction and, if a residential property, whether the buyer intends to occupy the property. No written agreement is required.
Customer:
A customer is a party to a real estate transaction with whom the broker has no brokerage relationship because such party has not engaged or employed the broker, either as the party’s agent or as the party’s transaction-broker.
A Perfect Storm for first-time home buyers? (1/23/09)
How's the Market? This is everyone's favorite question for Realtors and it somehow suggests that there is just one answer. The truth is that any market has opportunities and if it is bad for sellers, it will be good for buyers.
What anyone who follows our market knows is that prices have dropped. It is impossible to put one number to quantify exactly how much. Different sectors of a market perform differently. However, by taking a couple of examples, we can quickly get an overall sense.
My own house in Glenwood Springs was appraised about 6 months ago at $695,000. A couple of weeks ago, in order to take advantage of the low interest rates, we had it appraised again for a refinance. It was appraised at $595,000. That is a 15% drop.
An example in the Castle Valley subdivision of New Castle shows a similar trend. The highest sale price for one of the town homes was $335,000 at the beginning of 2008. Currently a similar town home is likely to sell for around $295,000, or a 12% drop.
This is great news for buyers and not great for sellers. As for those who have no plans to move in the next couple of years, it makes hardly a jot of difference!
In purchasing a home it is the combination of the sale price and the interest rate on a loan that give us the true cost for the buyer. Just a few months ago FHA rates were at 7%. Recently they have dropped to 5%. Using the town home in New Castle provides some illuminating numbers.
If the purchaser who paid $335,000 got a 7% loan, their monthly payment would be around $2,500. If someone were to purchase the same town home now for $295,000 at a 5% rate, their payment would be more like $1,800 - a $700 difference!
The last factor for first time home buyers to consider is the cost of renting v. owning. This town home currently rents for around $1,600. With a purchase payment of $1,800, about $350 a month goes to the principal, not to the landlord! Add to this the tax deduction that homeowners receive - in this example it could be worth around $300 a month (check with your accountant on this one).
If interest rates climb back to 7% (still a very reasonable rate compared to the 15% that homebuyers were paying in the 80s!), the payment would increase by around $360 a month.
Storms pass and this may be the perfect time to make hay while it is still raining!
Despite so many big projects in our area being put on hold, the developers of the Roaring Fork Lodge hotel are moving full steam ahead. As well 106 hotel rooms, there are 40 condominiums for sale. It appears that once the developer has sufficient reservations / contracts in place, construction will begin. Reports suggest that around 25% of the units have reservations on them at this point.
Recent news has Denver based Magnolia Hotels signing a partnership and operating the lodge upon completion. Magnolia operates upscale boutique hotels in several large U.S. cities.
It seems that the development is likely to be popular with front range buyers - Glenwood Springs is the most popular destination for Coloradans - who enjoy coming up to Glenwood for the holidays and weekends. The bike trail just across the street leads straight to downtown and of course the Hot Springs Pool. An additional advantage will be the ability to take advantage of short term rentals to offset the cost. It also seems likely to be popular with local professionals looking for a great in-town location, and maintenance free living.
This really is the first development of this kind in Glenwood and I suspect that despite the down economy, units will sell well. There is nothing similar available in Glenwood and for all the folk from Denver who are regular visitors to the local hotels, this may prove to be a very attractive proposition.
With units ranging in size from just under 1,000 sq.ft to just under 2,000 sq.ft. pricing looks like being around $400 / sq. ft.
With the extended time-frame from contract to completion, it will be important to analyze the contract carefully and be aware of deadlines affecting earnest money deposits.
If you are making a purchase, consider working with a buyer's agent rather than directly with the developer - This way you are guaranteed a representative promoting only your best interests.
Prices in the Aspen Real Estate Luxury Market
The world over, Aspen is known as a "must-own" town for the ultra wealthy. When you see a 6,000 square foot lot listed in town for $3,250,00, you can not but be reminded of the tried and true real estate axiom; location, location, location!
So how have prices been holding up in the face of this global economic crisis? Well, it is certainly true that sales have fallen significantly - down 40% from 2007. But in terms of prices, somewhat surprisingly, there has not been a significant change. This is perhaps explained by the extraordinary power of the Aspen name. Celebrities, Intellectuals, Business magnates, political leaders and power brokers the world over are drawn to Aspen.
Aspen is a place where, once people visit, they dream of owning a second home or retiring. For many, being right in the heart of town or right next to the ski slopes is the most important factor in their real estate choices. However, a growing number of families are looking just a short twenty minute drive away in the mid-valley area around the increasingly popular town of Basalt; described by many as "the way Aspen used to be". And of course the additional advantage for many is the proximity to the city amenities of Glenwood Springs with its award winning hospital, world famous hot-springs and big-box stores.
Indeed when you make the comparison, the numbers are quite illuminating. Three million dollars can buy you the aforementioned 6,000 square foot vacant lot in downtown Aspen, a twenty year old 1,700 square foot condominium on the slopes at Snowmass or a brand new 6,275 square foot custom luxury home on 3.5 wooded acres in the mid-valley area.
An Aspen home with the Aspen lifestyle at a fraction of the cost - This is where the smart-money is investing in their generational legacy.
Click on the following links to see the different properties:
Ski-in / Ski-out condo in Snowmass
Vacant Lot in Aspen
Custom Home 20 minutes from Aspen
- NUMBER1EXPERT™ 
