Frequently Asked Questions
1. What is a buyer agent / buyer broker?
A buyer agent or buyer broker (sometimes referred to as buyer agency or buyers agents) represents the buyer in a real estate transaction. Buyer agency is defined as follows: A principal agent relationship in which the broker is the agent for a buyer, with fiduciary responsibilities to the buyer. What does that mean? It means that a buyer agent is tied to the buyer, and that all of that agent's loyalties are to the buyer.
The seller's agent, or the listing agent, represents the seller, not the buyer, and his or her loyalties are to the seller. They must tell the seller anything you tell them, even if it hurts your negotiating position. For obvious reasons, you should never provide a listing agent with any information that you wouldn't want a seller to know about you. Even information that may seem trivial could potentially provide a seller with an unexpected advantage during negotiations.
Although the benefits of a buyer agent are obvious, remarkably many individuals still do not know they can have their own real estate agent look out for their best interests.
2. Why do I need a buyer agent?
Simply put, there isn't any good reason not to have a buyer agent represent you and many important reasons to have a buyer agent represent you, especially if that buyer agent is an exclusive buyer agent.
A buyer's agent represents the buyer, not the seller, and looks out for your best interest. Buyer agents have a duty to get the best deal for the buyer client(s).
A buyer's agent also will pass along any information about the seller or his or her property to help the home buyer make a smart decision and get the best deal possible.
A buyer agent has no interest in any particular piece of property, so a buyer agent will provide you with objective advice with no exceptions. A buyer agent will spot potential problems with a home or any material defects. The seller's agent will not point out defects in the home.
A common misconception is that the buyer’s agent is paid for by the buyer, when in reality they are paid by the seller of the property.
3. What is the difference between a designated buyer agent and exclusive buyer agent?
Unless your buyer agent is an exclusive buyer agent, your buyer agent is likely a designated buyer agent. In other words, most buyer agents work at real estate firms that also represent sellers, so although your agent may be working as your buyer agent every other agent in that firm potentially could be working against you.
With an exclusive buyer agent real estate firm, every real estate agent at the firm has the same relationship with the home buyer as the agent working with that home buyer. Everyone is working for you and only you.
4. Can the seller's agent represent me?
Although possibly helpful in other areas of the home-buying process, a seller's agent cannot be your advocate or counsel you about a property's value or negotiation strategy because he or she works for the seller. In addition, if you work with a seller's agent he or she must disclose to the seller anything he or she knows about you or your circumstances that would give the seller a competitive advantage or affect their decision making.
5. Will there be a charge for the real estate services, if I decide to purchase a home from a for sale by owner?
It depends. In many cases individuals selling their homes without a broker will offer a commission to buyer agents (brokers) for bringing a buyer to them.
6. Can you refer me to a home inspector?
Yes, we can provide a list of competent home inspectors we recommend, and we also will provide you with a complete list of Texas licensed home inspectors. The information typically is included in the home inspection information we provide to our clients after an offer is accepted, but we are happy to share it at anytime.