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What is a Buyer's Broker?

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?

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