Steamboat Springs, CO Real Estate and Community Blog

Because buying Steamboat Springs property is not something most people do every day, there is a lot of wrong information out there regarding realtor commissions and who pays what. Here is one example I hope clears up a few misconceptions about buying Steamboat real estate.

This week, I had a situation where someone called and wanted to see a property. After asking a few questions, it was obvious there were several items that were going to make the purchase difficult, which I explained to the buyer. We set up a time to meet and I went to work researching properties that would be a better fit for the buyer’s needs.

Well, a few hours before the meeting, she called to say, “I’m sorry, I thought you were the listing agent. I have a friend in the real estate business I really should use, but I want to use the listing agent. I can’t see paying all that money to another realtor. Can you give me the listing broker’s name?”

First, there are over 400 Realtors in Steamboat Springs. Some are excellent, some are good, and some, well, let’s just say I couldn’t in good faith hand over the name. Not only wouldn’t it save the buyer any money, but this particular agent needs…ahem… more time in the business.

So the first misconception was that all Realtors do the exact same thing. This buyer assumed Realtors are interchangeable like apples from Safeway vs. apples from City Market. No way!

As a buyer, you should find an agent you feel comfortable with who is looking out for YOUR best interests. Not the seller’s interests. An exclusive buyer’s agent should do everything they can to be sure you as the buyer are getting the best terms and the best deal for you. There is a much better chance that a buyer’s agent will save you money–usually more than the amount you thought you’d save going with the listing agent–but more importantly, they’ll be working exclusively for you.  Not the seller.

The second misconception was that the buyer would have to pay two realtors.

I explained to the buyer that the seller pays the real estate commission. In the listing agreement, they agree to pay whatever % they agreed to pay. That amount doesn’t change just because a buyer buys through a listing agent. In fact, the Realtor will be happy they don’t have to pay the other agent. They’ll get double pay, not half pay.

I advised the buyer to “find an agent, whether it is your part-time Realtor friend or myself, who you feel confident is doing the very best for you. Use a buyer’s agent who will do more than just submit your offer.  Don’t make the mistake of thinking the listing agent is the only way to save money. It’s not.” She thanked me and is now a bit more educated about buying property.

After all, the best real estate transactions are ones where everyone goes away happy.