Agency Choices for Real Estate Buyers
Customer or Client... It's Your Choice!
The Fun Part:
You’re going to enjoy looking for, finding, and getting settled in your new home. I’m going to do my durndest to make this an enjoyable experience.
But Business First:
All real estate brokerage companies are subject to the common law of agency. The Texas Real Estate Commission requires me, by law, to disclose to you and the seller whom I represent (work for). Most agents work for, and are paid by, the seller or owner of the property. This means that anything you (as a buyer) say can be used against you. Actually the law requires if a buyer makes an offer on a property, and tells the agent that they are willing to pay more, the agent is required to tell the seller. The seller's agent cannot suggest you make a lower offer, even if they know the property is overpriced. A buyer and a real estate brokerage company must agree on a legal relationship before your real estate needs or financial information are discussed. This legal relationship determines whether you will receive client level services or customer level services.
Customer Level Service: If a real estate brokerage company represents the seller in a transaction and not the buyer, the seller will be the client and the buyer will be the customer of the seller's brokerage company. In this example all fiduciary duties are owed to the seller and the seller only! (Fiduciary duties are explained below.)
Client Level Service: If a real estate brokerage company represents the buyer in a transaction and not the seller, the buyer will be the client and the seller the customer of the buyer's brokerage company. To obtain representation, the buyer and the brokerage company will enter into a "Buyer Representation Agreement." In this example the buyer is owed all the fiduciary duties of his/her agent. (Fiduciary duties are explained below.)
The Fiduciary Duties owed to a client by a real estate brokerage company are as follows:
* Undivided loyalty
* Obedience
* Reasonable Care
* Confidentiality
* Full Disclosure
* Accountability
Example:
If you listed your house for Sale, you would be hiring the agent, their company and all other real estate agents to work for you, to sell your house. All agents are required by law to get the best deal for the seller.
Exception:
If the Buyer has a written agreement with a Buyer's Broker, the Buyer's Broker will do everything legally possible to get the Best Deal for the Buyer.
When signing any sort of contract, there is always consideration to be paid. However, there are several ways to receive this representation without having to pay for it yourself! Here are a few:
1. To induce buyers to view their property, most sellers will voluntarily agree to pay all or a portion of the buyer's agent's fee on behalf of the buyer. If the property is listed with a brokerage company, this can be accomplished at no additional expense to the seller.
2. A buyer may make an offer to the seller which is contingent upon the seller paying the buyer agent's fee.
3. The buyer can pay the buyer agent's fee and reduce the offer to the seller by the amount of the fee.
4. The buyer can simply refuse to purchase the property if the seller will not assist in the paying of the buyer agent's fee.
* TO DATE, NONE OF MY BUYER CLIENTS HAVE HAD TO PAY FOR THE REPRESENTATION THAT I SUPPLIED TO THEM. YOU CAN ENJOY THIS LUXURY AS WELL!!
Let's now look at the benefits of being a buyer client while looking for a home:
* Your agent can now fight to help you obtain the best possible price & terms for the property you finally choose.
* The knowledge that anything you say to your agent cannot be used against you in the negotiations with the seller.
* Now you can be provided with a "Competitive Market Analysis" for any home to assist you in determining price.
* Your buyer agent will provide an objective view of properties pointing out both positive and negative aspects of the property, neighborhood & area.
* Your buyer agent will assist you, the Buyer, in establishing a negotiating strategy, implementing the strategy and keeping the strategy confidential.
* But most importantly, your agent will obey your lawful instructions and provide 100% loyalty to you!
You know you want to purchase a property. Now make the move that will help you achieve your goal for the lowest possible price and best possible terms. As my client, you not only hire me, but you also get my whole office and staff working to accomplish your goals.
It's your money...It's your decision!
Need more info on Buyer's Brokerage? Email: clairew@realtypros.com
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