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The Commitment That Goes Both Ways

Question: I am beginning my house-hunting process. What type of real estate agent should I work with to ensure my interest is protected in this transaction?

Answer:

Congratulations to your first step in home ownership. There are many financial, tax and emotional benefits to owning your own home. Something you call your own. I remembered when I first became a home owner, the first thing I did was to paint the walls - simply because I can! I remembered that feeling as if it was yesterday. Your question/ concern is valid and justifiable so because:

ALL real estate agents represented the seller by default - even if they had never met or talked to the seller. That means they have a legal responsibility to disclose to the seller any information given to them by the buyer.

So, as a buyer, how do you protect your interest in the transaction?

Your answer is simply with a written exclusivity agreement to work with a real estate agent. The paperwork is called the Buyer's Representation Agreement. In this document, it clearly defines both parties' obligations to one another. COMMITMENT TO BUYER: Hence, your buyer's interests are contractually protected, above the interests of the seller. Your agent will not disclose any information you do not wish to share with the sellers and if he/she feels that sharing some important information will put you in a better negotiation position will first ask for your permission.

Here in Texas, the Buyer's representation must be created in writing to be lawful. It must also have a time period: when this relationship begins and more importantly, when this relationship ends. If during this time you are not satisfied with the service you have been given, you may request for a Termination. Discuss with your agent if there are any fees involved. All real estate agents are independent contractors and each company have a different policy about this issue.

COMMITMENT TO AGENT: Having this agreement in writing also protects the agent who has been working hard for you, spending countless hours on research, showing you - the buyer the properties.

If you are interested in understanding the importance of the Exclusivity Agreement from the real estate agent's perspective, read also, Working Exclusively Is an Important Message Your Client Needs To Know.

Note: All contents are original. I write consumer-related real estate blogs based on my experiences with other real estate clients. They make the best teachers. Consider subscribing to my blog.

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I proudly serve and sell real estate in the northern suburb cities of the Dallas metroplex. If you are thinking about purchasing or selling your home in neighborhoods of Frisco, Plano, Dallas, McKinney, Allen, Little Elm, Prosper, Celina, Richardson, Dallas M-Streets, Dallas White Rock Lake area and other surrounding areas and more importantly, want to work with a local area expert, contact me immediately.

It is a competitive market, hence it is important that you choose to work with the realtor who knows these communities like none other. I employ a systematic market approach in selling your home - an intentionally unique proposal that most real estate agents do not use. If you care to be on your way to a successful closing, contact me immediately to see how different my proposition will be.

Contact:
Loreena Yeo
Realtor®/ Broker of 3:16 team REALTY
(214) 783-2210
loreena@loreenayeo.com

Copyright © 2008 by Loreena Yeo (3:16 team REALTY). The Commitment That Goes Both Ways.
Do Not Copy. Serious actions will be taken. Re-blog is allowed for Active Rain members on the Active Rain platform when the content is taken in its entirety and credit be given to Loreena Yeo and 3:16 team REALTY.

Posted by Loreena Yeo - Broker|Realtor(R) of www.Frisco-TX-Homes.com (214) 783-2210 on 12/01/2008 05:37 PM

Comments (7)

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home buying in frisco, frisco tx real estate

Originally posted at: faithfully frisco tx homes for sale: The Commitment That Goes Both Ways

This post has been included in Texas Information Collin County, TX Information Frisco, TX Information
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7 Comments on The Commitment That Goes Both Ways

DEC

2008

Loreena, great post. The Buyer Rep agreement builds a Win-Win between buyer and agent.

Loreena, You know it! The transaction and the work to be done is shared and everyone should know their part. IN WRITTING!

Buyer agency is criticial to the process. It is great when clients (buyers) know they have true representation and an advocate for them ! Great post ! If I was a buyer in Frisco, I would ask you to represent me ! ~ Chris

Hi Loreena!
I agree that it is important to find a reputable Realtor, but I have to say, a reputable Realtor and a Realtor who uses the buyer/broker agreement are not mutually exclusive. I am the designated broker for our company, am an active, full time Realtor, have always represented the interests of my buyers and have never used a buyer/broker agreement.

I want a buyer to work with me because they trust me and believe I will do a great job for them. If they choose to not work with me, even after months of work on my part, I would never hold them to doing so...contract or not. I know the argument is that I am a subagent of the listing broker and so I am ultimately working for the seller. I simply don't agree that this fact has any affect on my representation of my buyer.

Just my two cents worth.

DEC

2008

Its surprising to know how many agents do NOT get this document signed.

I have to respectfully disagree with Paula. Its a personal choice and I respect your opinion, but the way I read the comment sounded like 'if you use the document its because I do not trust you'. Perhaps thats not how she meant it, but thats how I read it (please do not be offended by this, its not personal). I do think you have to protect yourself as a Buyers Agent. Who is to say that you spent all this time and effort, the client then goes to an open house that they happen to be driving by, and the listing agent is able to make the sale right then (far fetched? Maybe, but it could happen). Then you do not get paid for your efforts.

Now I do agree that it does not go hand in hand. Just because you have the document signed does not make you a good agent, but it does protect you. Unless you know this person outside of this transaction and do not need to protect yourself... which is great. But if you just met them and you are confident in your abilities, then you should get the document signed.

In my past, I did not find it necessary to have this document signed. I could do business on a handshake. It's not that I say that consumers cannot, but having the physical act of signing this document (in my mind) does get both parties more aware of the exclusivity relationship. I have not problems - if my clients do not like using my services to opt for a termination. The clients would then be obligated to tell me that they no longer are in need of my services. Instead of just stop taking calls or answering emails. I think this document sets off the relationship in the right foot.

Hi John!
I'm sorry if it sounded like using the buyer/broker agreement translates to a trust issue. I did not mean it that way. There is no doubt that using the agreement protects the hours and hours that a Realtor puts in to representing their buyer. There was a recent featured blog that spoke about the true purpose of this agreement...and it was precisely to protect the broker. My only problem is presenting it as protecting the interests of the buyer due to the subagent issue. While this is factually true, I just don't think it is truly why Realtors use it. I would just like it presented for what it is...you know, the old saying, "If it looks like a duck and quacks like a duck, it's a duck." The buyer/broker agreement, in my opinion, is used more to protect the broker than the buyer. Just putting in my 2 cents worth (which is probably about what it is worth!)

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