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Choosing a real estate broker is a key element in a successful real estate transaction. The largest single financial transaction that a family makes is often the purchase or sale of the family home. The importance of that real estate transaction cannot be minimized. The assistance of a competent real estate broker can go a long way towards making this most significant purchase a smooth and happy one. Deciding how to proceed when you decide to buy or sell real property should be a result of careful consideration.
The language of real estate may seem like a foreign language to novice buyers and sellers. The details of the transaction can seem complicated for any buyer or seller. While there is no requirement that a buyer or seller utilize the services of a real estate broker, most novice and seasoned buyers and sellers feel more comfortable taking advantage of the expertise of licensed real estate professionals. The services of attorneys, accountants, engineers and home inspectors can all contribute to a successful real estate transaction.
The percentage of real estate transactions that result in problems or disputes is small. Despite the number of transactions that conclude without a hitch, the consequences of an unsatisfactory real estate transfer can be substantial. Some contracts fail and disputes about the cause can and do happen.
The Colorado Real Estate Commission and the Division of Real Estate exist to protect the public by insuring that real estate licensees meet certain minimum standards of education, examination and experience before being allowed to practice real estate brokerage in Colorado. Brokers are subject to disciplinary action and even revocation of their real estate licenses for failure to comply with the Real Estate Commission’s Rules and Colorado License Law. Every active real estate licensee is required to maintain a policy of errors and omissions insurance to protect the public from loss resulting from the inadvertent and unintentional acts of the licensee.
Choosing a real estate broker is a subjective process. Certain criteria should be established in your search for a broker to assist you in achieving your goals for any real estate transaction. Consider your own real estate knowledge and experience and what type of transaction (raw ground, condominium, time share interest, etc.) you contemplate when deciding which real estate broker can best serve your needs. For instance, your own lack of practical experience can be offset by a broker’s specialized experience in certain types of transactions. If you have experience in single family home purchases, you might be comfortable with a broker with general residential knowledge and experience rather than a specialization.
It is good practice to interview more than one broker when you do not have the advantage of a successful track record with a broker or when a different or more complex type of transaction is intended. Friends and neighbors are a good starting point for recommendations both pro and con for individual licensees. One good or bad report on a licensee is only the first step in sizing up potential brokerage assistance. You should follow up with more opinions whenever possible.
Always remember that brokerage fees are negotiable between you and the licensee!
Division of Real Estate information on whether or not a company or an individual is licensed, and information on whether or not there is a disciplinary record is available on our website by using the License Database Search.