Buying a home is the biggest purchase you will ever
make. Until 1996 any real estate agent in a transaction worked for
the seller, either as the listing agent or as a subagent to the
seller. The buyer essentially had no representation. But in 1996 the
state of Texas began to recognize Buyers Agents whose responsibility
was completely to the Buyer. The buyer's representative works for
the buyer and has the client's best interests in mind throughout
the entire real estate transaction.
The broker becomes the buyer's agent by entering into an agreement to
represent the buyer, usually through a written buyer representation
agreement. The agreement will spell out the parties of the
agreement, set forth the area and term of representation, the type
of relationship that is authorized and who will pay for the broker's
fee. In almost every case the seller pays for the broker's fee
through the MLS cooperation in a separate agreement with the listing
broker. In the case of new homes, the builder usually pays the
brokerage fee.
As a consumer, how often do you buy real estate property? Once,
twice, three times in your lifetime? Purchasing real estate is a
complex and major transaction with many details to be handled. In
the majority of cases, an agent will represent the seller. Wouldn’t
you want to have complete and fair representation in the real estate
transaction also, especially when there is no cost to you?