Yesterday I received a question via email from a consumer:
I was told that one does not need a real estate agent to fill out a sales
agreement on property, would like an honest answer from a licensed professional.
The question is a fair one so I’ve decided to respond not just in person but in blog format too. Hopefully the response will influence buyers and sellers in their Denver real estate dealings.
Yes, whoever told you a real estate contract does not need to be filled out by a real estate agent is correct. Buyers and sellers get together all the time to do business without benefit or aid of real estate agents.
Of course like any answer there are always exceptions. For instance if you are collecting a commission for the sale of the property, you will need to be licensed. If you are not licensed you will be in violation of the law because you will practicing real estate without a license. That is a no-no.
In the State of Colorado real estate agents are allowed to fill in the blanks of the State Approved Contracts. They cannot write the entire contract. If they did, they would be practicing law without a license. Another no-no.
The consumer obviously asked me this question to confirm a truth already heard. I wish I could ask her a question or two to delve into the “why” and “why nots” of the transaction.
I’ve been selling real estate in Colorado for going on 24 years. I’ve come into contact with many a poor soul who got himself into a bad situation because he wanted to save a few dollars or felt he had all the facts.
Contracts are serious business, not “dress rehearsals.”
The truth of the matter is buying real estate is not an exact science. The contract part of filling in blanks is easy. The problem arises when the blanks are filled out without deep consideration as to what it all means. Missing a blank, erroneous data can cause very expensive issues. A buyer’s earnest money could be at risk, or lost entirely.
The lady who asked the question may not know that she could hire a Real Estate
Consultant to write the offer for her. A Consultant would quote her a price (considerably less than a co-op commission) and negotiate for her, on her behalf.
Many consumers are not aware there is such an alternative. We in the real estate industry call it “fee based services.” Such services can be chosen from a menu of offerings, consumers can pick a choose what services they need, when they need them.
Paying a few dollars for the added protection is well worth the worry and expense it will save in the end.
How does the saying go? An ounce of prevention is worth a pound of cure.
About the Author
Kristal has been helping buyers and sellers in Colorado since 1984. She enjoys sharing her knowledge of the Metro Denver Real Estate market via blogging and in person while driving around the beautiful Rocky Mountain town of Denver! For fun, Kristal enjoys shooting things with a Canon. Visit Denver Photo Blog