Hiring a friend or family member who just got their Colorado real estate license

Your sister-in-law just got her license. Or your best friend has been at it a year or two. You like them, you trust them, and you want to support them. I'm not saying don't hire them. I'm saying ask a few questions first.

Why experience matters

A simple deal mostly runs itself. You want to sell, they want to buy, you agree on price. Once there are moving parts, like solar, a tricky inspection or a slow market, you need someone who is in it every day. My rough floor is at least five closings a year, unless the whole market has stalled. Below that, it's hard to stay current on how negotiations are going and what has changed in the contracts.

A past client reached out to me recently. The person they were dating held a license and was well known, but only handled the occasional deal for close family and friends. The pricing strategy they'd been given might have worked in an even market. In today's market, it was leaving money on the table.

The question to ask

You don't have to choose between the relationship and good representation. Try something like this:

"I really want to work with you. I love your energy and I trust you. My concern is market experience. Do you have a mentor, or someone in your office we could co-list with, in case things get sticky?"

Someone who takes their career seriously will appreciate the question.

How co-listing works in Colorado

In Colorado, a broker who isn't their own managing broker can often bring an experienced broker from their office onto your listing as a co-lister. How the two of them split the commission is between them. Your part is negotiating the total you're willing to pay, and that goes in your agreement.

Why the second broker needs to be on the agreement

This part matters. In Colorado, the brokers named in your listing agreement are the ones working for you. If your broker is quietly getting advice from someone down the hall, and that person has a buyer for your house, that person isn't obligated to protect you. Put them on the agreement, and they are.

Frequently asked questions

Should I hire a family member as my real estate agent?

You can. Ask about their recent closings, and if they're newer, ask whether an experienced broker in their office can co-list with them.

What is co-listing?

Co-listing puts two brokers on your listing agreement, so both are obligated to represent you.

Does co-listing cost more?

Not necessarily. The two brokers decide how to split the commission between themselves. You negotiate the total you pay.

Sarah Cowan, Broker Associate, Guide Real Estate (License FA100037983). 350 plus Colorado transactions. Serving the Denver Metro area including Jefferson, Denver, Arapahoe, Adams, and Douglas counties.