All Forum Posts by: Erika Andersen

Great points  - and likely the price points we are talking about are very different - yours much higher. Very possible I made mistakes. However, while anyone who purchased in 2022 should expect a loss, that doesn't mean everyone is going to/ able to  accept one until the house has sat on the market for a while - probably different at your price point - ie more expendable $; able to absorb a loss. The house is a good fit for us, and we didn't want to wait. Family medical issue- being near my mom is the driver. I'd been looking for a long time and nothing close to what we wanted. The house hadn't been on the market long. We didn't pay full price, and the process isn't over.  It's pretty much conjecture regarding how the deal could have gone. 

Yep! Tracking is a pain, and attorneys have it down! By doing my homework, such as studying up on the Colorado contract and filling it out myself in advance of working with the attorney, asking questions of the attorney as a last resort after searching for information to the best of my ability, and clarifying my questions and sending any questions in an email, I was able to minimize time and pay less. Not everyone wants to do this, but thousands of dollars can be saved for those who do! It's another form of DIY/ sweat equity, just as folks learn basic construction/ home repair skills to save thousands.

Having done the process now - I think the issue is buyer RE agents expecting a 2.5%+ commission like in the past. In many areas, it's a buyer's market. Savvy buyers have a lot of support resources, AI, and automation to DIY much of the buyer process, market research, and purchase process. Many of the skills required are translatable from other professions. Filling out the contracts is surprisingly simple. Working with an RE attorney provides peace of mind at a fraction of the traditional commission structure of the RE. When it's a buyer's market, I think RE agents will need to be creative to offer a variety of structures to work with/ prospective buyers. 

Update! Finding an RE buyer agent to work at an hourly or fixed rate was hard - although contrary to what a few folks mentioned here, those options are listed on the standardized Colorado contract. In the interim, I found a house, negotiated 2.5% off the listing price, and we're under contract! I attended the first open house and requested a showing by the seller agent with my husband present.

Here's why I think my process worked:

1. Denver is a buyer's market - houses sit for a bit (one month plus). Two years ago, this approach would not have been an option.

2. Narrow focus - I know the zip codes I wanted to purchase well. I wanted to be within a less than 20-minute radius of my mom. Also, hyperfocus helps me find a home with the right conditions - a stable but increasing-value neighborhood. An older house that had already been flipped (2022) -- all new appliances, remodeling, good floor plan. The exterior is a bit sad - which worked to my benefit. It didn't yell "cute" in the Zillow picture, but improving curb appeal won't be a huge investment. Plus, the buyer needed to get rid of the house quickly as she was getting married and moving - her list price was 5K over what she had paid in 2022, and she had made improvements. I knew she wouldn't want to come down too much --- so she got the same net, and I saved 2.5%. I'm happy - the floor plan is exactly what I was looking for - tri-level 4/4- which is hard to find in the price range I wanted. House went on the market 1/17- we were under contract @ day 14.

3. Not a rookie - While I have never purchased a home without an agent, I have purchased two homes in the last fifteen years in Denver and, at some point, managed both with some form of rental income, plus helping my mom manage the independent basement apartment in her home. I also put my good student skills to use in understanding comps, etc. Fortunately, those skills can be generalized from one profession to another.

4. Luck  - Colorado contracts are straightforward.

5. Support - I hired an RE attorney @ $350 hourly. I also filled out the contract to minimize the fee, and we reviewed it together. Also, my husband has experience with contracts and helped with researching information I found difficult. Overall, the process was easier than I had anticipated.

6. Privilege - We don't have contingencies. We are keeping our current house as a rental. I have a flexible schedule and was able to put in the time.

My takeaway: - I would definitely hire an RE agent as a seller. However, the next time I buy a house, if it's a buyer's market and I know the area I want to purchase well, I'll repeat this process if it's in a state with straightforward contracts. I learned a lot, feel more confident and am pleased with the outcome.

Hi All,

Given the current buyer's market - specifically Denver - seller agents are willing to show houses. For folks in similar markets who are willing to do their homework and who know the area they want to purchase in, it seems like using a hybrid approach might be feasible. In our case, avoiding a buyer's commission seems to be potentially helpful with negotiations, especially since we are purchasing below what we can afford, and can pay up front for RE attorney, buyer RE fees, etc. Also given the slow market it seems some RE agents are willing to consider a hybrid model. The market is dynamic. I'll show up here again to share how the story ends.

Hi Savvy Folks! We have some real estate experience - home purchases & managing rentals. We're interested in a primary residence home purchase using a RE attorney and hiring a buyer's RE on an hourly basis. Does anyone have experience with this? We're in CO and will be buying in Denver.

Thanks!

Hi! Does anyone have a real estate attorney recommendation to review a property management lease?

Thanks,

Erika