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Who Represents You?
By John Adams

One of the hot topics facing the world of real estate right now is the issue of agency. Some would have you believe that it really doesn't affect you, the buyer, and that nothing much has changed. But they are wrong.

The topic of agency is important to you because it answers the most basic and fundamental question that can be asked of any real estate professional: Who do you represent in this transaction?

Until that question is answered, you may be left with the impression that all agents who work with buyers actually represent those buyers, and that you have somebody going to bat for you in this transaction. Well, the issue of agency is important because without it, we can never be sure who represents who.

Here's the scenario:

You meet a really nice agent at an open house named Bonnie. Even though Bonnie's house is not right for you, she tells you she has others to show you that fit your needs exactly. You spend an hour or so with Bonnie looking at a half dozen homes and talking about your needs and your wants. During the course of the conversation, you volunteer that you have $100,000 cash to spend and that you will not go over $100,000 purchase price no matter what. Then you find the perfect house. Asking price is $100,000 but you decide to offer $92,500 based on recent sales in the area. During negotiations, the seller asks Bonnie directly how much cash you have and how high will you go? What does Bonnie say?

Here's the answer: Unless you have signed a "Buyer Agency Agreement" with Bonnie making her your buyer agent, she is most likely acting as a sub-agent to the listing broker who represents the seller. If that is the case, she has a fiduciary obligation to the seller to disclose to him any information she has that might "promote or protect his interest" in the transaction. Guess what? Bonnie has that information.

The Seller, now having knowledge of your financial position, counters at a full $100,000. He knows you can afford it and that this price falls within your desired range. He also knows that you have seen a number of other homes and that his is the one you want.

Regardless of what eventually happens in this scenario, it can hardly be called an even playing field. So, how can you protect yourself from a possible disclosure required of a seller's agent?

1. Make sure that the agent you are working with has agreed, in writing, to represent you as a "Buyer's Agent." This will mean signing a buyer brokerage agreement in which you promise to work only with that particular agent for a specific period of time, often 90 days. It also means that you promise not to buy from anybody else, even FSBOs, without involving your buyer's agent. In almost every case, the commission will still come from the seller, but your agent must present the offer.

2. Never say anything to anybody unless you would be willing to have that information repeated into a seller's ear. Assume that everybody, and I mean everybody, is working for a seller unless you have specifically hired them to work for you. And even then, be discreet. During the second world war, the military promoted a phrase designed to stop idle gossip: Loose lips sink ships! You would do well to adopt that philosophy in your home-buying as well.

What is a Buyer's Agent?

A real estate buyer's agent represents the consumer who is purchasing the property in the real estate transaction. The buyer's agent works for the buyer client and has the clients best interests in mind through out the entire real estate transaction process. This agreement should spell out the responsibilities of both parties throughout the real estate transaction.

Texas law requires all real estate licensees to give the following information about brokerage services
to prospective buyers, tenants, sellers, and landlords.

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If you have any questions regarding our duties and responsibilities, please let us know.

Advantages

Using a Buyers Representative offers the consumer many benefits.

Evaluate the specific needs and wants of the buyer and locate properties
that fit those specifications.

Assist in viewing properties and preview the properties on behalf of the client to insure that the identified criteria are met.

Research the selected properties to identify any problems or issues to help the consumer in making an informed decision prior to making an appropriate offer on
the property.

Present the offer to the sellers agent and seller on the clients behalf.

Negotiate on behalf of the buyer client to help obtain the identified property.
Keep in mind that the buyer agent will be doing so with their clients best interests
in mind.

Recommendations and assistance in securing appropriate financing for the
selected property.

Provide a list of potential vendors e.g. movers, carpenters if these services are needed by the consumer.

Most importantly, the buyer would know that they are fully represented
throughout the real estate transaction.

Q & A's

Can't I buy the house cheaper if I call the agent whose
name is on the sign?

Not necessarily, The listing agent owes their loyalty to the seller and will be looking out for the seller's best interest. All they will do is write up the offer to purchase at the amount you specify. Be very careful of what you say! The listing agent, by law, must tell the seller if you indicate you are willing to pay more than what you offered for the house.
Remember - they work for the seller, not the buyer.

What About New Homes and New Subdivisions?

Often there is a on site salesperson at model homes or subdivisions who represents
the builder. Sometimes, there might be a real estate office at the subdivision that handles a lot of the builders in that subdivision. In all of these situations a Buyer should have their own representation with an agent who is not representing the builder, subdivision, or developer.

We can represent the Buyer with purchase of a new home in an existing or new subdivision. Most builders will gladly pay a real estate commission to a REALTOR who brings a buyer for one of their homes.

If you take a drive around the county and check out the new construction, don't sign in or register at any of the houses or with any of the sales people
if you're planning to use a Buyer Representative for your actual purchase.

Tell them that you are working with a REALTOR and will return with that Realtor if you are interested in that subdivision.

Doesn't it make sense to have an agent represent you?

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We have made every effort to insure that the above information is complete and correct
at the time of publication. However, Intown Properties assumes no responsibility for
the accuracy of the information contained herein. All properties are subject
to availability, price changes, and prior purchase or lease.

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We have made every effort to insure that the Dallas Real Estate information is complete and correct at the time of publication However, Intown Properties assumes no responsibility for the accuracy of the information contained herein. All properties are subject to availability, price changes, and prior purchase or lease Here at Intown Properties Our Dallas Real Estate Sales Associate's can help YOU in many ways. Our Agents work and live in the Dallas/Fort Worth areas of Texas, working with buyers and sellers in the state of Texas and adjacent areas of Dallas and Tarrant Counties. We strive to provide a high level of professional service,

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