Here Are the Work-Arounds That Will Keep Sellers Paying Buyer Agents’ Commission
The biggest work-around is Section 29 of the state-approved (and mandated) Contract to Buy & Sell, shown at right.
As shown below in this week’s (and last week’s) featured new listing, many ads, brochures and websites for listings will now contain the notice that “Seller offers __% compensation to buyer brokers.”
Absent that offer, however, the buyer can use Sec. 29.1 of their purchase contract to specify the compensation paid by the seller to their agent. This is where the offered compensation, such as for the listing below, is to be inserted — or, if none is offered, the buyer’s demand for compensation is inserted.
amendment to their buyer agency agreement setting the commission rate at 2% and writing that amount in Sec. 29.1 of the purchase contract. Or, they could decide to write 2.5% in Sec. 29.1 anyway and see if the seller will sign it. If the seller counters the offer, changing it to 2.0%, if the seller wants to accept the counterproposal, they can still amend the buyer agency agreement before signing the counterproposal.
Of course, the buyer might like his broker so much, that he or she will offer to pay the extra 0.5%, although that would be unusual. As I wrote last week, I’ll be surprised if many (or any) buyers end up paying anything to their broker.
The opposite scenario could be true.
wants to sell her or his home is going to deny any compensation to buyer brokers and that you can defer the conversation about adjusting the buyer compensation until the buyer is ready to make an offer of a house they want.
One complication of this strategy is that the buyer will have already signed a buyer agency agreement with his or her broker, stating the commission amount, if any, that the buyer is willing to pay, and if the seller falls short of that percentage or dollar amount, the buyer must make up the difference.
But, not to worry — there’s a simple workaround for that. At any time during the term of the buyer agent agreement (called the “Exclusive Right-to-Buy Listing Contract”), it can be amended by mutual agreement of the buyer and his or her broker.
Let’s say, for example, that the buyer has signed a buyer agency agreement with 2.5% as the promised compensation to their broker. A seller has offered 2.0%. In discussion prior to writing the offer, the buyer might negotiate an
The buyer may have signed a buyer agency agreement in which the rate is 2.5%, but the seller has advertised that they will pay 2.8%. The rule is that the buyer’s broker can’t accept more than is specified in their signed agreement with their buyer. No problem — amend the buyer agency agreement to 2.8% before writing the offer. However, if there’s a bidding war, the buyer and broker might decide to write 2.5% into their offer, hoping that competing offers will include 2.8% for their buyers’ brokers.
Buyers will likely say upfront that they don’t want to pay a dime (or more than a nominal amount) to the broker representing them in their home search.
The smart broker (which, of course, includes all Golden Real Estate brokers) will point out Sec. 29.1 and quote this article saying that it has become a “buyer’s market” and that no seller who
Tree Golf Community
Meanwhile, a broker wanting to represent a buyer needs to be confident enough of the value he or she provides to the buyer to say that they won’t work with that buyer unless they agree to some minimum compensation for that value. For me personally, I would put that minimum at a minimum of 2.0%, given the value every buyer gets from
me — knowledgeable, experienced representation and negotiating skill, use of our free moving truck, free moving boxes and packing materials, and team members at their disposal from our inhouse handyman, cleaning personnel, loan officers, inspectors and more. All of us at Golden Real Estate are aware of the value we provide to our clients, both buyers and sellers, and we look forward to serving both with the skill that we know we have. If you want proof, click on the “Testimonials” tab at www.GoldenRealEstate.com. We look forward to earning your good review!
Broker Associate Austin Pottorff Specializes in Land
Personally, I prefer to work one-onone with buyers and sellers, as do most of my broker associates. But Austin Pottorff is different. He loves to find owners of larger parcels of land and help them sell to one of his many buyers, some of whom are developers looking for sites to build multi-family neighborhoods.
Earlier this year, with a little help from me, Austin sold a commercial property in Golden (Mountain Muffler, at 2200 Ford Street) to a developer. He currently has three land parcels under contract, one in Pleasant View, and two in Arvada, and he has three
active listings, including a veterinary hospital on three acres at 9251 N. Wadsworth Ave. for $2,490,000, an 8acre parcel on the I-70 south frontage road in Wheat Ridge for $6,000,000, and another land parcel elsewhere in Jefferson County.
If you have land you’d like to sell or are looking to buy land, give Austin a call at 970-281-9071, or email him at Austin@GoldenRealEstate.com. Austin’s fellow associates and I are impressed at the quality of his work identifying such land opportunities and even creating aerial videos of them as part of his marketing strategy.
This Column Is Now Published on Substack
$695,000
Enjoy maintenance-free living in the quiet community called Masters Park. This townhome at 9444 Southern Hills Circle is being sold by its original owners, who purchased the home 25 years ago. You’ll like the updated kitchen and primary suite with its updated 5-piece bathroom and its spacious deck overlooking the green space behind. As you will see on its website, this home has been tastefully decorated including, for example, the walls of the powder room painted by a local artist in a bamboo theme! It’s a friendly community too, with get-togethers Monday evenings in the gazebo next to this home. The golf course is behind the homes across the street! Some furniture is available for purchase outside of closing. Look for the list with prices on the coffee table. Visit www.LoneTreeHome.info for interior and exterior photos, floor plans, a narrated video walk-through and an aerial video. Greg Kraft will be holding it open on Saturday, Aug. 31st, 11 to 1, or call 720-353-1922 to request a showing. Note: Seller offers 2.8% commission to buyer’s broker.
Everything you read in this ad each week is published in blog form (with extra content and active hyperlinks) at http://RealEstateToday.Substack.com and comes to you by email automatically each Wednesday.
I’m also publishing a political column you might like. Find it, too, in blog form at http://TalkingTurkey.Substack.com
Rita and I are on a transatlantic cruise during August and September. Read my continuing travelogue at http://WhereAreJimandRita.Substack.com.
I have free cell and email throughout, so feel free to reach out to me anytime.
Jim Smith
Broker/Owner, 303-525-1851
Jim@GoldenRealEstate.com 1214 Washington Ave.,
3-BR Patio Home in Lone
TRIVIA
1. TELEVISION: Who was host of the “Good Eats” cooking show?
2. GEOGRAPHY: Which nation’s nickname is “Land of Fire and Ice”?
3. MUSIC: What was the title of Madonna’s rst Top 10 hit?
4. MOVIES: What does the acronym AT-AT refer to in the “Star Wars” movie series?
5. LITERATURE: Which famous entertainer started a children’s book-giving program called the Imagination Library?
6. ANIMAL KINGDOM: Which bird’s eye is larger than its brain?
7. U.S. CITIES: Which U.S. city’s nickname is e District?
8. HISTORY: In which modern country is the ancient civilization of Babylon located?
9. GENERAL KNOWLEDGE: How many articles are in the U.S. Constitution?
10. AD SLOGANS: Which rental platform’s slogan is “Belong
anywhere”?
Answers
1. Alton Brown.
2. Iceland.
3. “Borderline.”
4. All Terrain Armored Transport.
5. Dolly Parton.
6. Ostrich.
7. Washington, D.C.
8. Iraq.
9. Seven.
10. Airbnb.
(c) 2024 King Features Synd., Inc.
FLASHBACK
1. What is the Continental Drift?
2. Which group released “Shout”?
3. Where was “Give Peace a Chance” recorded?
4. Which musician was called Satchmo?
5. Name the song that contains this lyric: “I could stay awake just to hear you breathing, Watch you smile while you are sleeping.”
Answers
1. It’s a line dance, aka the Sid Shu e, from the animated
movie “Ice Age.” See YouTube for instructions on the dance.
2. e Isley Brothers, in 1959. It took until 1999 for the song to be admitted to the Grammy Hall of Fame.
3. In a motel room in Montreal in 1969, during the “Bed-In” staged by John Lennon and Yoko Ono during their honeymoon. Recording equipment, including a four-track recorder, was brought in. e small crowd included one of the Smothers Brothers, Timothy Leary of LSD fame and a rabbi.
4. Trumpeter Louis Armstrong was called Satchel Mouth
because of the shape of his mouth from playing trumpet. at was shortened to Satchmo.
5. “I Don’t Want to Miss A ing,” by Aerosmith in 1998. e song was featured in the lm “Armageddon” and topped charts around the world. Mark Chesnutt followed with a cover the next year.
(c) 2024 King Features Syndicate
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Dear Colorado State Land Board, Je erson County and Our Community,
Wetheundersignedwildlife,scientific,conservation,andpreservationorganizationsrepresentingthousandsof membersacrossJeffersonCountyandColoradostronglysupporttheConservation,Preservation,andProtectionof the250-acreColoradoStateLandpropertyWestofConiferonShadowMountainDriveandSouthWarhawkRoad, see themapbelow.(ThisisaproposedsiteforaChair-liftoperatedBikePark ifapprovedbytheJeffersonCounty PlanningCommission,JeffersonCountyCommissioners,andtheStateLandBoard).Thisareaservesasahabitat refuge,migrationcorridor,andundevelopedopenspacelocatedbetweenhigher-elevationfederalandstatelands tothewestandlower-elevationcityandcountylandtotheeastincludingneighboringconservationeasements.
Wetheundersignedwildlife,scientific,conservation,andpreservationorganizationsrepresentingthousandsof membersacrossJeffersonCountyandColoradostronglysupporttheConservation,Preservation,andProtectionof the250-acreColoradoStateLandpropertyWestofConiferonShadowMountainDriveandSouthWarhawkRoad, see themapbelow.(ThisisaproposedsiteforaChair-liftoperatedBikePark ifapprovedbytheJeffersonCounty PlanningCommission,JeffersonCountyCommissioners,andtheStateLandBoard).Thisareaservesasahabitat refuge,migrationcorridor,andundevelopedopenspacelocatedbetweenhigher-elevationfederalandstatelands tothewestandlower-elevationcityandcountylandtotheeastincludingneighboringconservationeasements.
We the undersigned wildlife, scienti c, conservation, and preservation organizations representing thousands of members across Je erson County and Colorado strongly support the Conservation, Preservation, and Protection of the 250-acre Colorado State Land property West of Conifer on Shadow Mountain Drive and South Warhawk Road. (This is a proposed site for a Chairlift operated Bike Park if approved by the Je erson County Planning Commission, Je erson County Commissioners, and the State Land Board). This area serves as a habitat refuge, migration corridor, and undeveloped open space located between higher-elevation federal and state lands to the west and lower-elevation city and county land to the east including neighboring conservation easements.
This property is a riparian wetland habitat along North Turkey Creek and provides critical ecological resources to wildlife: sh, birds, mammals, and reptiles along with biologically diverse plant life, aspen groves, forest, and other organisms. Expert studies and research support that this ecosystem is a geographic area where plants, animals, birds and sh, and other organisms, as well as weather and landscapes, work together to form an area known for its refuge assets. Colorado Parks and Wildlife District Managers recognize there is great wildlife value in maintaining this parcel of undeveloped land, protected from development and regular use by human recreation. As human populations have grown people have overtaken many ecosystems. With an estimated 5000 people a week, or a maximum of 1200 people a day on this 250-acre State Land property (if the Bike Park is approved) the wildlife and sensitive ecosystem will be destroyed, taking the wildlife with it. It is impossible to mitigate the impact of 5000 people a week, riding thousands of automobiles and trucks, and depositing themselves in a 300 -space parking lot occupied by a commercial downhill biking enterprise. For these reasons, we ask that the Colorado State Land on Shadow Mountain be conserved, preserved, and protected.
No other similar commercial and intensive recreational land uses are located in the upper North Turkey Creek watershed. As scientists and professionals devoted to the land and wildlife, and the systems that combine to keep nature healthy and ourishing, we ask that this parcel, too, remain free from commercial and intensive recreational land use and be conserved and protected for the greater good.
