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Agents, offers and contingencies

3-minute readLesson 1 of 9 in Finding the homeLast reviewed October 2026

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The short version

Before an agent tours homes with you, you sign a written buyer agreement. It states what the agent will be paid and how. Since August 17, 2024, offers to pay buyer agents cannot appear on the MLS, and every fee is negotiable.

When you find a home, your offer becomes a contract with deadlines. Three parts matter most:

  • Earnest money: a deposit that shows you are serious. It counts toward your cash to close. You can lose it if you withdraw for a reason the contract does not allow.
  • Contingencies: conditions that allow you to cancel the contract. The usual ones cover inspection, appraisal, loan and title. Each has a deadline, and once it passes, that option to cancel ends.
  • Pre-approval letter: proof that a lender has reviewed your file. Ask for one written for the price you are offering rather than your maximum.

Read the agreement and the contract before you sign, and ask what happens if a deadline is missed.

In Colorado, a broker can work with you as a buyer's agent, who works only for you and advocates for you, or as a transaction-broker, who assists with the transaction without advocating for either side. Your agreement states which role applies. In a small market, your agent's brokerage may also be listing the home you want, so ask how that is handled before you write an offer.

Go deeper

What the buyer agreement must say

Under the rules that resulted from the National Association of Realtors settlement, the agreement must:

  • State the agent's compensation as a specific amount or rate, rather than an open-ended amount
  • Prohibit the agent from receiving more than that amount from any source
  • State clearly that broker fees are fully negotiable and not set by law

Review the term, the area it covers and how you can end it. Some agreements cover one home, while others cover every home you buy in a county for months. A shorter, narrower agreement is easier to manage if the relationship is not a good fit.

Who pays your agent, and how loans treat it

Sellers can still agree to pay your agent. However, that payment cannot be advertised on the MLS. Your agent can request it in the offer, either as a direct payment or as a seller concession.

When a seller pays the buyer's agent as is customary locally, Fannie Mae and FHA have said the payment does not count against their seller-credit limits. Since August 2024, VA buyers have been allowed to pay their own agent, but that fee cannot be added to the loan.

Check what your agreement says if the seller pays less than the agreed amount. If you owe the difference, it comes out of your cash at closing, so it belongs in your budget.

Colorado contract deadlines

Colorado uses state-approved contract forms with a dated deadline for each step. The deadlines that affect buyers most are:

  • Inspection Objection and Inspection Resolution deadlines
  • Appraisal Objection deadline
  • New Loan Availability deadline
  • Property Insurance Termination deadline
  • Water Rights and Mineral Rights Examination deadlines, which matter on rural land

Send us your contract the day it is signed. We schedule the appraisal order and underwriting around those dates, and we will tell you early if a deadline looks tight.

Making the pre-approval letter work for you

A letter for your exact offer price keeps your maximum budget private. We can issue a new one for each offer, usually the same day.

A listing agent may call to ask how strong your financing is. With your permission, we can confirm what has been reviewed, such as income, assets and credit, without sharing your maximum.

The letter is only as strong as the file behind it. A new car loan, a job change or a large unexplained deposit after the letter is issued can invalidate it. Talk with us before making any of those changes.

See it with your numbers

Your Mortgage Plan shows the payment and cash to close for each option, so you know what you can offer before you write it.

Already have a Mortgage Plan? Open your link, or text Daniel.

Text Daniel at 970-480-0540Book a call

The opening of a Mortgage Plan: “Erica’s Mortgage Plan,” a short note from Daniel, and three loan options side by side, each with its monthly payment and cash to close.

Your next step

Lesson 2 of 9 in Finding the homeReading the room: how to negotiateDays on market, price history and seller motivation show how much room there is to negotiate, and when a lower price or a seller credit is the better request.Read the lesson