Most folks may not be aware of the difference between Denver Realtors and Non-Realtors. Realtors take an extra step by joining the Realtor organizations on a local, state and national level to improve their expertise and service to consumers.
Not All Denver Real Estate Agents Are Realtors
Only Realtors may use the designation of the National Association of Realtors their local organizations such as The Metro Denver Association of Realtors.
Are you required to use a Realtor to buy or sell a home?
Absolutely not! In Denver, many lower priced agencies offer discounted fees and services. Often, those agents do not become Realtors. The could join the Realtor organization if they took the necessary classes, subscribed to the Realtor Code of Ethics and paid their annual dues. Most choose not to do that.
Not so long ago, you needed to use a Realtor to buy or sell a home in the Denver MLS. Back then, Non-Realtor agents could still list and sell. But, they did not have access to the Denver MLS. So, they enjoyed fewer tools to sell homes. As a result, nearly all agents became Realtors. Today in Colorado, only about 3/4 of all agents have the Realtor designation.
Realtors Can Add Value to Real Estate Transactions
On average, Realtors experience selling homes exceeds 10 years and sell more homes annually than non-Realtors. That means you have an expert on your side in a real estate transaction. Also, transactions are complicated and involve a lot of moving parts. Your Realtor is your fiduciary with more experience and knowledge to protect your interests with a buyer or seller agency agreement.
In addition, Realtors subscribe to a National Code of Ethics. They are required to take more education classes than non-Realtors. Beyond that, Realtors must provide fair business practices to all parties in a transaction. Finally, they are required to maintain professional standards throughout every real estate transaction.
Also, Realtors are offered extra education classes in addition to the required Ethics classes. The average Realtor worked more than 40 hours a week in 2017. That means, you are less likely to find a part-time Realtor. Agents who part-time usually have other jobs which can take away from their availability in time-sensitive situations.
I-Buyers are Internet Buyers
Now, a third option has entered the Colorado Real Estate Market. Internet buyers are companies the make offers to purchase to potential sellers. That way, Sellers may not have to list with a Realtor at all.
Zillow, Open Door and a host of I-Buyers now advertise throughout the internet. Seller can ask for an offer from any or all of them. Sounds great! Avoid a Realtor commission fee. Don’t worry about staging or showing your home. Often, I-Buyers offer quick closing and loan financing to worry about.
But all this comes at a price. Offers can lower than our hot Denver real estate market might otherwise bear. In addition, you still might pay real estate commission. Plus, some extra fees can be added too. And, don’t forget if you do not have a agency agreement, I-Buyers are not required to represent your best interests. You are on your own. My advice is to at least employ an attorney for the transaction. That way, someone will be on your side until closing.
Still, for home sellers who to sell quickly and with much hassle the costs may be out-weighed by the convenience.