The State of Texas, the Texas Real Estate Commission and the Texas Association of Realtors have established, recognized and enforce three ways in which a licensed agent may represent a buyer or seller in a real estate transaction.  It is critical that you be made aware of and understand these forms of representation as they can have a dramatic effect on the outcome of your particular transaction.

For more details on the topic of Information About Brokerage Services, review this TAR promulgated form and call me with any questions you may have

An obvious point to take away from that form is that a seller's agent (e.g. the listing agent whose name is on the sign) works for the seller and has an obligation to obtain the best deal possible for that seller (e.g. not the best deal for you).

 

 

WHY YOU NEED A BUYER’S AGENT

 To quote the previously mentioned Information About Brokerage Services, “A broker who acts as a subagent represents the owner (i.e. seller) in cooperation with the listing broker”.  Simply put, I am a subagent of the seller if I do not have a signed agency agreement with you.  You will see the importance of this illustrated below.

Increasingly, sellers and listing agents are refusing to allow other agents to work in a subagency capacity for a seller.  They do this simply by refusing to pay a commission to an agent working with a buyer not committed to Buyer’s Agency via the Residential Buyer/Tenant Representation Agreement (TAR-1501).

Brokerage company policies and, increasingly, E&O insurers are encouraging agents and potential buyers to avoid the pitfalls inherent in a situation where the perception is that the agent is protecting the buyer when, in fact, their actual duties and responsibilities are owed directly to the seller!

For obvious reasons, buyer representation has become my preferred agency relationship when working with a buyer.

 

BUYER’S AGENT	SUBAGENT
Gives full attention to the buyer’s needs	Pay attention to seller needs
Buyer can be open about their needs	Confidential info must be shared with  the seller
Suggests alternatives to meet buyers needs	Agent keeps the focus on seller’s property
Find the best property for the buyer	Find the best buyer for the seller
Investigate all property for the buyer	Limit properties when you find one that works
Tell buyer about new listings	No duty to keep looking for more property
No limit to price range of searches	Show only properties that match price range
Give advice and interpret facts	Only give the facts with no advice
Educate the buyer	Protect the seller’s interest
Negotiation strategy for the buyer	Only give facts and do not focus on negatives
Strengthen buyer’s negotiating position	Strengthen seller’s negotiation position
Price-do a CMA and interpret it	Comps only or a CMA that supports a seller’s price
Write in protections for buyer	Do not suggest buyer protection if it hurts seller
Financing that is in the buyer’s best interest	No financing suggestions that could hurt the seller
Negotiate to get the best for buyer	Negotiate to get the best for seller
Share all info about the seller	Share all info about the buyer
Solve problems for the buyer	Solve problems for the seller