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Selling a Home or Condo in Colorado

List with a Broomfield CO Homes for Sale Real Estate Agent!

When you're looking for a real estate agent in Broomfield CO to help you negotiate the complexities of selling a home in Denver, you've come to the right place. The experience, dedication and strong communication you'll receive here will help ensure the successful and profitable sale of your home whether it's in Broomfield CO, a home listed in Westminster CO, you are thinking of selling a house in Brighton CO, Arvada CO home for sale, or we even list homes for sale in Lakewood Colorado, as well!

1. The Local Advantage
- Take advantage of Keller Williams broad spectrum of technologies and tools to support the sale of your home from start to close.

2. Internet Advertising
- Since the lion's share of home buyers starts their search on the internet, top placement on search engines is essential. You'll gain access to placement on Google, MSNBC,Trulia and other websites. This will maximize your exposure and bring a large number of potential buyers to view information about your home for sale in Broomfield CO and other areas in metropolitan Denver including your homes for sale in Westminster CO, homes for sale in Brighton CO, homes for sale in Arvada CO, homes for sale in Lakewood CO and homes for sale in Denver CO.

3. Email Campaigns - It's important to "work the network." We can work together to identify the right people to target your home for sale in Broomfield CO- and get in touch with them by email to drive excitement and interest.

4. Personal Touch - Of course, technology alone won't sell your home in Broomfield Colorado. Face-to-face interaction provides the advantage to sell your home-and you won't have to worry about a thing. The details will be handled with care and constant communication, to ensure the marketing and sale of your Broomfield home goes smoothly.

Steps In Selling Your Broomfield Home For Sale

Hire the Broomfield CO Homes For Sale REALTOR®!

Studies show that homesellers who use a REALTOR® to represent them generally get a better price than those who sell the home themselves. REALTORS® are up-to-date on critical processes and can help keep you out of trouble. They can also help you get your home in Broomfield Colorado sold at the best price in the right timeframe. Just as important, REALTORS® add objectivity to an inherently emotional transaction: the sale of your home. Before Your home is listed it's important to have everything in great showing condition before buyers start going through it. Here are some steps I would advise you to take:
  • Install new flooring and carpeting throughout if it appears worn or dated.
  • Touch up interior and exterior paint as needed. If you are concerned about lead based paint in your home, read on.
  • Make sure the front is clean and spruced up – curb appeal will create a favorable first impression.
  • Trim any bushes and plants as needed, and make sure the lawn is kept mowed and trimmed. In the fall, rake the leaves; in the winter keep the snow shoveled and the walk free of ice.
  • Keep the interior clean, decluttered and odor-free. Eliminate evidence of pets. Smoke-free is best. Here is an article on reasons homes for sale in Broomfield do not sell.
  • Remove and minimize personal items such as family photos. You will want buyers to visualize themselves living in the home.
  • Consider putting any extra furniture and belongings in storage. This is the time to clean out the garage and basement and sell, donate or throw away any thing you don't need anymore.
  • Consider having a home inspection performed before listing. Buyers will be hiring professional inspectors to assess your home so here's your chance to address problems in advance. Ask your agent what they think on this
  • A professional appraisal is another item that you can do in advance. Ask your agent for help and advice in this area as well.
  • Consider engaging a professional stager to give your home the right emotional appeal. In the current market most buyers are looking and finding immaculate, remodeled and updated homes for sale in Broomfield.
  • By making repairs you will answer buyer's questions early, build trust in your home more quickly, and proceed through the closing process with fewer surprises. Your home will appeal to more buyers, sell faster and bring a higher price!

During the Listing Period
  • When potential buyers visit your home, please be absent.
  • Have fresh flowers in the entryway. It makes for a friendly introduction into your home.
  • If offers are made that don't equal your hoped-for price, don't reject them out of hand. Pay attention to your agent's advice.
  • Drop the sale price on your home if after a few months you have no offers or very little activity. If you have priced your home properly from the start, this should not be necessary.
  • Don't get discouraged. In buyer's markets, homes take longer to sell than during boom times. Your home will eventually sell; it's a matter of your Broomfield CO Keller Williams real estate agent finding the right buyer for you!
Help Out Your Agent! You have the best chance of selling your home if you work closely with your Keller Williams agent. Make sure all showings are coordinated through him or her. If you have a brochure box, be sure to keep it filled. Maintain the clean, tight condition of your home so that it can bring the highest value in an offer to you! If prospective buyers want to discuss your property or negotiate price or other terms, defer to your Keller Williams agent. He or she is the expert with the experience and they can best handle all these details without getting emotional!

Getting Your Colorado House Ready To Selll

The home selling process can be full of surprises and a little overwhelming at times if you do not have a clear plan and maintain realistic expectations from the beginning. The Homewerks team with Keller Williams can help you create a plan and implement it to best assist you in the successful sale of your Colorado home.

How Can a Real Estate Agent Help Me Sell My Home?

When you own a home in Colorado you have made your very best investment in your life. On the average, homes appreciate about five percent a year. Some years will be more, some less. The figure will vary from neighborhood to neighborhood, and region to region.

When talking with real estate agents, you will often find that they discuss with you about buying real estate, they will refer to your purchase as a "home." Yet if you are selling property, they will often refer to it as a "house." There is a reason for this. Buying real estate is often an emotional decision, but when selling real estate you need to remove emotion from the equation to be more effective in the transaction.

You need to think of your house as a marketable commodity. Property for sale. “Real estate on the market.” Your goal is to get others to see it as their potential home and no longer yours. If you do not consciously make this decision, you can inadvertently create a situation where it takes longer to sell your property. So the first step in getting your home ready to sell is to "de-personalize" it.

De– Personalize The House

The reason you want to "de-personalize" your house for sale is because you want buyers to view it as their potential home. When a homebuyer sees your family photos and awards in the office, it puts your own personality on the home and removes the possibility of them owning your house. We recommend that you put away any family photographs, souvenirs, collectibles, sports trophies, knick-knacks and excess media items such as CD’s and DVD’s. Put them away in a box. Rent a storage area if there is a lot of these kinds of things to store for a few months.

Do not just put these boxes and containers in the attic, basement, garage or a closet. A big part of preparing a house for sale in Broomfield, or anywhere else in the Denver area, is to remove some of your personal items that make the home look smaller and that is the next step in preparing your house for sale.

Home Safety Checklist

De– Clutter Your Property

When you are thinking of selling your home in Denver, removing clutter can be the most difficult thing for most people to do because you are emotionally attached to everything in the house. Years of living in the same home can prevent homeowners from seeing their home objectively. A lot of buyers just cannot see past the clutter to determine if they want to put an offer on your home. Clutter does affect the way buyers see the home, even if you do not realize it. Clutter collects on counter tops, shelves, in drawers, closets, garages, attics, and basements and even in backyards!

Try taking a step back and view your home for sale in Broomfield as if you are a buyer. Let a friend help point out areas of clutter that they see, as long as you can accept their views without getting defensive. Definitely allow your agent to help you, too. They see a lot of homes and they understand the effectiveness of removing clutter in a home for sale.

The kitchen is the first place to start removing clutter, because it is an easy place to start, and it is the first and most important area in the home to most home buyers. Start by getting everything off the counters. Even the coffee maker. Put the small appliances in the cabinets and just get them out when you need them. Find a place where you can store everything in cabinets and drawers. Most likely you will not have enough cabinet space to put everything. We recommend that they be cleaned out. The utensils and dishes, cookware that rarely gets used put them in a box and store those things, too.

What happens is homebuyers will often open all your cabinets and drawers, especially in the kitchen. They want to be sure there is enough room for their "stuff." If your kitchen cabinets, pantries, and drawers look jammed full, it sends a message to the buyer that there may not be enough plentiful storage space. The best way to do prevent this image is to present as much "open space" as possible.

So if you have a rarely used toaster put it in storage. Do this with every cabinet and drawer. If you have a "junk drawer," get rid of the junk. Go through every drawer and cabinet. Create empty areas for the buyer’s visualization. If you have a lot of food in your pantry, start using them – especially canned goods. You will not want to move heavy canned goods to your new home– or pay someone to move these kinds of things, either.

The cabinets under the sink should be as empty as possible. Remove all extra cleaning supplies. Wipe this area down as well, and determine if there are any apparent signs of water leaks that may cause a home buyer to be hesitant in purchasing your home.

Closets are inclined to accumulating clutter, though you may not regard it as clutter. Pack up any extra pairs of shoes and clothes and other items that you rarely wear or use. Do without these things for a couple of months and again, put them in a box, because these items can make your closets look "crammed full."

Do you possibly have too much furniture in some rooms, not too much for your own personal living needs, but too much to give the impression of open space that a homebuyer would like to see? Take a little time and look at some model homes to see how they place furniture about the house. You can get some great ideas on what to remove and what to leave in your house.

Basements, garages, attics, and sheds accumulate not only too much clutter, but junk. These areas should be as empty and clean as possible so that anyone can visualize what they would do with these areas. Remove anything that is not essential and take it to the storage area away from your home for sale in Broomfield.

Or even have a garage sale. There are simple solutions to most of these situations as you get ready to market your home for sale. Cleaning and reducing clutter. So what should you fix?

Understanding the Colorado Home Buyer

Fixing Up the Inside of the House For Sale

All your sink fixtures and plumbing should look shiny and new. If this cannot be accomplished by cleaning, we recommend that you buy new ones where needed. If you don’t buy something fancy, this can be accomplished inexpensively and these are fairly easy to install. Make sure all the hot and cold water knobs are easy to turn and that the faucets do not leak. If they do, replace the washers. These are the kinds of things that can come up easily on an inspection, so why not fix these things now, and avoid being asked later, or worse yet, the buyers could change their minds if there are too many things to fix in the house.

Also check to make sure you have good water pressure and that there are no stains on any of the porcelain sinks and tubs. If you have some difficult stains to remove, one easy way is to hire a cleaning crew to go through and detail your home in Westminster on a one-time basis. This could definitely be worth the cost of making things clean, bright and nice.

Sometimes you just need to paint. Check all the ceilings for water stains. Sometimes old leaks leave stains, even after you have repaired the leak. We suggest that you repair any leak, whether it is a plumbing problem or the roof has a leak.

You should do the same for walls, looking for not only stains, but also areas where dirt has accumulated and you just may not have noticed. Do you may have an outdated color scheme anywhere in the home?
Painting generally can be your best investment when selling your home. It is not a very expensive thing to do, and often you can “do it yourself. ” Do not choose colors based on your own preferences, but based on what would appeal to the widest possible number of buyers. Usually just plain white walls is best. An off-white hue helps your rooms appear bright, clean and more spacious.

Unless your carpet appears old and worn, or it is an outdated style or color, you probably should do nothing more than hire a good carpet cleaning company. If you do choose to replace it, do so with something inexpensive in a fairly neutral color. Earth-tones are best, not too dark. Repair or replace broken floor tiles, but do not spend a lot of money on anything. Keep in mind that you are not fixing up the place for yourself, you are going to move! The goal is simply to have as few negative impressions for anyone who may want to buy a house in Thornton.

Energy Efficiency Information

Check all of your doors and windows to make sure they open and close easily. If not, spray a lubricant spray like WD40 on the doorknob joints and hinges. Make sure the doorknobs turn easily and the doors do not creak. Wipe down the doors and polish the doorknobs. Make sure there are no cracked or broken windowpanes. If there are, replace them before you begin showing your home. This is doing everything possible to create a great impression on a home buyer.

Speaking of great impressions, odor control is a huge item to pay attention to. For those who smoke, you might want to eliminate smoking indoors while trying to sell your home. Purchasing an ozone spray will help to remove odors without creating a masking odor.

Pet odors are immediately noticeable to home buyers, so please be aware that most homeowners are not aware that these smells exist in their house they want to sell. For anyone with cats, be sure to empty kitty litter boxes daily. Please keep the dogs outdoors as much as possible.

Be careful before doing anything expensive, such as remodeling. Remember that part of selling a house is also preparing to buy your next home. You do not want to do anything that might create debt, this could affect your credit scores or hurt your ability to qualify for your next mortgage.

Increasing your Home's Appeal

Fixing Up the Outside of the House

A homebuyer’s very first impression is based on his or her view of the house when they pull up in their car. In the real estate world we call this “curb appeal.” So take a walk across the street and take a good look at your house. Then take a look at nearby houses, too, and see how your “appearance value” compares.

Most real estate tips encourage you to work on the outside of the house first, but unless there is a major project involved, we at Homewerks believe it is best to do it last. There are two reasons for this. First, preparing the interior of the house is easier. This helps develop the proper mind set needed for selling - starting to think of your home as a marketable real estate commodity. Second, the exterior is the most important, as mentioned earlier. Is your landscaping in your yard at least average for the neighborhood? If it is not, buy a few bushes and plants. Do not add trees. They are expensive, and you will not get a return on your invested time and money. Also, immature trees do not really add much to the appearance of the home.

Plant any flowerbeds with mature colorful flowers. This will add both beauty and a great first impression to a potential home buyer in Broomfield CO. Oh, and do not plant seeds, they will not mature fast enough to create the desired effect and we certainly don’t need an empty patch of soil for home buyers to see!

A well cut and trimmed lawn is important. If there are problems with your lawn, such as dead spots, you should probably take care of them before working on the inside of your home. This is the exception and this is because certain areas may require sod replacement and you want to give it a chance to grow so that re-sod areas are not apparent. Fertilizer needs a little time to be effective. Always rake up grass clippings and any loose leaves as well as removing any clutter in the back yard.

The big exterior house decision is to paint or not to paint? When anyone looks at your house from across the street, does it appear worn and faded? If so, new paint may be a really good idea. When choosing an exterior paint color, it should both fit into the neighborhood and the style of the house for sale. Modern and popular hues are what we recommend and painting is often a very good investment.

As for the roof, if you know your house has an old leaky roof, replace it. If you do not replace a leaky roof, you are going to have to disclose it in the Seller’s Property Disclosure and the buyer will want a new roof, anyway. When we work with buyers and there is a possibility that the roof is leaky or needs replacement, we request the seller replace the roof up front in the offer to buy contract.

The front door should be especially nice, since it is the entryway into the house. Wipe down, wax if it is wood, and polish the door fixture so that it shines. If the door needs refinishing or repainting, make sure to get that done. If you have a plaque or sign with your family name on it, remove it. Even if it is just on the mailbox. You can always put it up again once you move. Get a nice new simple looking door mat, too. This is something else you can take with you once you move.

Make sure the key fits properly and the lock works well. When a home buyer comes to visit your home, their agent uses the key from the lock box to unlock the door. If there is trouble working the lock while the interested buyer waits, well, the impression is not good for them. Keep things tidy and fix anything that a potential buyer might see as a red flag or, if fixed or replaced, would be beneficial in getting a good offer on your home for sale in Broomfield.

Eight Steps to Selling a Home in Denver CO

The Risks of Starting with a High Sales Price

Everyone who is looking to sell their home starts investigating the sales prices of homes in their area. Next, they schedule appointments with three local Realtors in the Broomfield Colorado area with whom they have received some kind of solicitation. Each Realtor comes prepared with current comparable sales data for your home and all three recommend an ideal market value for the property.

Two of the Broomfield Realtors have come up with lower prices than what the homeowner was anticipating, supported with their comparisons of recent sales of similar homes in the area. The homeowner still feels their house is worth more. So the third real estate agent brings their comparable information and the numbers are much more in line with the expected home sales price, or maybe even a little higher. The owner looking to sell is excited and satisfied, already counting the money.

Which Broomfield Real Estate Agent is Best?

So the homeowner picks the third Realtor. This Realtor is an agent that is willing to begin the marketing at the home seller’s price and the seller knows they can always reduce the sales price later on if they need to. After all, everyone does it this way!

In reality, the home seller might have just met an agent engaging in a questionable sales practice known as “buying a listing." This agent sold the impression that the home for sale Westminster or Brighton would be able to get more money than the other agents, when in truth, he is quite doubtful that your home will actually sell at the higher price. The motivation of the third agent is to eventually talk the homeowner into lowering the price.

There are a couple of reasons why this typically happens. Some agents, who are either new or an agent who feels pressured from a homeowner who has an inflated perception of his home’s value wants to satisfy the homeowner by telling them what they want to hear. The other reason is there are some real estate agents who do this regularly.

What Usually Happens

Whatever the reason, if someone starts out with too high a price on their home, they may have just added to the stress level, and selling a home generally is stressful enough! Typically here is what happens that the home seller may not be aware of.

Realtors market homes to other real estate agents first, then home buyers second. Agents list and promote homes in the Denver Metrolist multiple listing service, or “MLS.” This is the most efficient way to market, having another agent working with buyers who come to view and decide if they want to purchase the listed home for sale.

If the price is right, there is a flurry of activity the first month or so...if not… Then you and your Realtor have overpriced.

Not a lot of real estate agents will show the home. After all, they are knowledgeable in the prices and activity in the market including conditions and the values of homes for sale. If a house is overpriced then the agents in the area would not waste time looking at it. Their time is better spent previewing homes that are priced to what is called ”fair market value.” This simply would be homes priced realistically to the condition of property and the location for the real estate market in Broomfield Colorado.

The Price Reduction Fix?

Later, when the price is reduced on the home, the house is no longer an exciting new home in the market for the area. And it is impossible to rewind the sales history on the home and recapture the interested parties that were looking for a property similar to yours. The end result is it will take longer to sell that home. And suppose there is a buyer willing to pay the high, out of market price. Even if you do successfully get an offer at an above market price, then your buyer will need a mortgage loan. The mortgage lender requires an appraisal to ensure that the value is in the home for the loan. If the comparable sales for the last three months and current market conditions do not support the purchase price, the property will not appraise. Now the transaction falls apart. Renegotiation of the sales price might happen, but only if the buyer is willing to do so. Now the house you thought you had sold goes back on the market.

The bottom line is the longer a home for sale sits on the market, the lower the homes sell for. It is more difficult to get a good priced offer. Other home buyers will think you might be getting desperate for an offer, so they will make lower offers. Their Realtor will encourage them to do so. By overpricing your house at the start, you could actually end up getting a lower price than you would have normally received at the beginning of the listing period. And more time has gone by, time you could have spent in your new home!

We at Homewerks do not take overpriced listings because it does neither you, as a seller, and us, as the agents, any good in being effective in selling your home in Broomfield CO, or anywhere else in the Denver metropolitan area.

How to Price to Sell Real Estate and Still Make a Profit

Types Of Listing Contracts

Probably the most confusing part of real estate is the use of contracts in purchasing a home. Since this is confusing, we like to talk a little about the different types of listing contracts that are used. The most common is the "Exclusive Right to Sell" sales contract, but there are a couple others that are used occasionally. These are the "Open Listing," the "Exclusive Agency Listing," and the "One-time Show."

The "Open Listing" is mostly used by those people who are trying to do a “For Sale by Owner” who are also willing to work with real estate agents. Essentially it gives a real estate agent the right to show home buyers your home. If their home buyer client buys your home, that agent gets rewarded with a commission. Any agent can earn a commission and the home seller can offer this to any real estate agent in the area. There also is no obligation to work exclusively with any agent.

For that reason, no Realtor is going to market your home or put it in the Multiple Listing Service. In addition, recent changes in real estate laws in the state of Colorado restrict the entry of properties that are not listed with a real estate office. If your home fits the criteria for one of the home buyers that they are working with, and it is convenient, they may be willing to show it to their client. This makes the "Open Listing" a limited and less effective situation.

Open Listing & One Time Show

A "one-time show" is similar to an open listing in many respects, as it is most often used by real estate agents who are showing a “For Sale by Owner” to one of their clients. The home seller signs the agreement, which identifies the potential buyer and guarantees the agent a commission should that buyer purchase the home. This prevents the buyer and seller from negotiating directly later and trying to avoid paying the agent’s commission.

As with an open listing, agents will not be spending money on marketing your home and it will not be placed in the Denver Metrolist Multiple Listing System.

Exclusive Agency Listing

An "exclusive agency" listing allows an agent to list and market your home, guaranteeing them a commission if the house sells through any real estate agent or company. It also allows sellers to seek out buyers on their own.

This is not a popular type of listing agreement. The reason is that there is not much incentive for agents to spend money marketing your home. If you come up with your own buyer, they have spent money they cannot earn back through the real estate commission. Plus, it is too easy for a greedy buyer to go around the agent and negotiate directly with the seller.

If you find an agent willing to accept such a listing, do not expect too much from them. They will probably just place it in the Multiple Listing Service and sit around to see if something happens. A good agent would never accept such a listing, and you probably want a good agent.

Exclusive Right– To– Sell

Giving a real estate agent the "exclusive right to sell" your property does not mean that there will not be other agents involved. Your agent is the listing agent and part of his or her job is to market your home to other agents who work with buyers. Those agents will show your home to their clients. Regardless of who sells the home, even if you sell it yourself to a friend at work, your listing agent will earn a commission.

An exclusive right to sell is the only type of listing an effective real estate agent will accept. This is because they have a reasonable expectation of earning back any money they spend on promoting and marketing your property.

Details Of A Listing Contract– Price & Terms

Obviously the name of the homeowner looking to sell with the property address will be included in the listing contract. There are many other things that are included, too, and you should be aware of some of these details.

Price and Terms of Sale

When setting the terms of sale, the main thing you are concerned with is the price. You should have a basic idea of what your home is worth by keeping track of other sales in the neighborhood. Plus, you have probably interviewed at least two real estate agents and they have given you their own ideas. Exercise great care in determining your asking price, making sure not to set it too high or too low.

In addition to the price, you will disclose what personal property, if any, goes with the house when you sell it. Personal property is anything that is not attached or fixed to the home, such as washers, dryers, refrigerators, and so on.

There may be some item that is considered "real property" that you do not intend to include in the sale. Real property is anything that is attached to the home. For example, you may have a chandelier that has been in your family for generations and you take it from home to home when you move. Since the chandelier is attached to the house, it is considered "real property" and a reasonable buyer would normally expect it to go with the house.

Good Home Seller's Practices

Role of a Lockbox

A lockbox is basically a padlock with a cavity inside where a key to your home can be placed. Only someone with an electronic key or the combination can get into the lockbox and access the key. Having a lockbox available at your house makes it easy for other agents to get access to your house.

Without the lockbox, agents representing buyers would have to set appointments to meet you or your agent at the house so they could gain access and view the home. This would be inconvenient. Since almost every other house for sale does have a lockbox available, if you do not allow one most agents will simply not show your property. You will miss out on lots of potential buyers.

The listing contract specifies whether you allow a lockbox or not. It is locked into place, usually on the front door and cannot be removed. Only other agents can access the key that is located within the lockbox.

Real Estate Commission

In some areas of the country there is a paid percentage amount that real estate agents expect to earn as a commission. This commission amount is a certain percent of the sales price. Or some companies will charge a set fee for their services. Or a transaction fee or services charge in addition to the commission rate on the sale. However, just like anything else in real estate, these items are negotiable, and when completing the listing agreement, you and your REALTOR will agree on the amount of the real estate commission. Normally this is divided equally between the Listing Agent and the Buyer’s Agent on the sale of a home.

Multiple Listing Service: Denver Metrolist

Your listing contract should specify whether or not the house will be listed with the Denver Metrolist MLS (multiple listing service). It is definitely in your interest to have the house listed. This is because your sales force is automatically multiplied by however many agents are members of the Denver Metrolist. If your house is not listed, then you only have one agent working for you instead of many.

Agency Duties Of A Listing Agent

The listing contract will specify that your agent is acting as a "seller’s agent." This means that, in the sale of your house, they are working for you and only you. However, there may be times when your listing agent has a client who wants to buy your home. For that reason, there is a little "wiggle room" in the listing contract. If your agent also represents the buyer, the listing contract should specify that they provide an additional disclosure that details their duties as a dual agent. The contract also provides permission for your listing agent to act as an agent for others on other transactions. They can continue to list other properties, and represent buyers looking at other homes.

Resolution Of Disputes

There are times when you and your agent have a disagreement that you cannot resolve by yourselves. Maybe the agent did a poor job or misrepresented something. Maybe your agent was really doing their job correctly, but you did not understand. Perhaps the agent will have a dispute with you. The listing contract specifies what methods will be used to settle such disputes. You can choose to accept binding arbitration, which is usually cheaper than hiring a lawyer and going to court. Usually, matters that can be dealt with in a small claims court are excluded from having to go to binding arbitration. You are not required to sign or initial the binding arbitration clause. This would leave you free to hire an attorney and pursue disputes in civil court instead of binding arbitration. Consult your attorney for advise on this legal matter.

Listing Commissions & Related Issues

In some areas of the country there is a certain percentage that real estate agents expect to earn as a commission. This commission amount is a certain percent of the sales price. Or, some companies will charge a set fee for their services. However, just like anything else in real estate, this amount is negotiable. When completing the listing agreement, you and your agent will agree on the amount of the real estate commission.

Cut– Rate Listing Commissions

With the advent of the web, a lot of agents are offering "cut-rate" commissions. Most of the time, lower commissions are tied to a lower level of service. If all you want is to be listed with the Denver MLS and a sign in the front yard, then a cut-rate commission may be right for you. If you want an agent who will actively promote your property to other agents and spend money on advertising, then you probably are not going to get that level of service with a reduced commission. At other times, the lower commissions are offered when you agree to tie in to other services offered by the broker, such as agreeing to use a specific lender, escrow, settlement, or title company. The broker (not the agent) will probably have some type of ownership or profit participation in those businesses.

The problem with agreeing to tie in to these other companies is that they do not have to be as competitive in pricing their products or services. Another common practice when you see an ad for a reduced commission is that the compensation is lowered when you agree to buy your next home through the same agent or broker. Usually, the reduced commission is not really being offered on the sale of your existing home but on the purchase of your next one. The ads are usually unclear on this. As a result, when you see an offer for a lower commission, you should analyze what you are giving up by accepting such an offer. It probably will not be readily apparent in the advertisement. Be sure to ask lots of questions.

How & When Listing Commissions Are Earned

Your listing contract specifies a listing price. Your agent’s job is to bring a "ready, willing and able" buyer to present an offer. If you reach agreement with the buyer, then the agent has done his job and earned the commission. Once the sale has closed, the real estate broker gets paid from the proceeds of the sale. If the buyer proves unable or unwilling to conclude the sale, the house is placed back on the market and the agent has to begin earning his or her commission all over again. However, if the seller backs out or does not accept an offer that meets the price and terms of the listing agreement, the listing broker has still earned the commission. They may want to be paid, even though you did not actually sell your home. For this reason, it is very important to carefully consider every detail when completing your listing contract and accepting an offer to buy your property.

This Month In Real Estate Information

Eight Steps to Selling a Home in Denver CO

How Can a Real Estate Agent Help Me Sell My Home?

How to Price to Sell Real Estate and Still Make a Profit

Good Home Seller's Practices

Understanding the Colorado Home Buyer

Increasing your Home's Appeal

Keller Williams Realty Mortgage Calculator

Contact Homewerks About Selling a Home
in Broomfield and Colorado Real Estate

Moving to Colorado Information

Home Safety Checklist

Energy Efficiency Information

Mortgage Insurance Information

National Foundation for Credit Counseling

Home Improvement & Home Equity Loans
Consumer Protection Information

Tax Information for
First Time Homeowners

Selling a Home Information