Once your decision to sell or purchase a home has been made, you will need to determine the real estate agent who can best represent you and your real estate needs.
There are three types of real estate agency in Texas: the Seller's agent, the Buyer's agent and intermediary.
The Seller's Agent
This agent represents only the seller. If you choose this type of agency then the agent representing you cannot also represent a buyer in a transaction with you. To find that agent that is a just right fit for you and your needs ask friends and relatives for names of agents they would recommend. It is best to interview a minimum of 2 to 3 agents before making a decision.
Listed below are some questions that may help you in your decision for your agent.
- How long have you been in real estate?
- How long have you been in this area?
- How familiar are you with this area?
- How long have you sold real estate in this area
- How many clients are you currently working with?
- How many homes did you sell last year?
- How do you plan on marketing or promoting my property?
- Can you give me names and phone numbers of previous clients who would be willing to give me a reference (assuming you have not already been referred to this agent).
- What is your typical commission?
Being able to trust and feel comfortable with your agent is a high priority. It is important to work with someone who will put your interest above all else including themselves.
The Buyer's Agent
Many prospective purchasers do not feel that need to contract with an agent for representation. It is their belief that the seller's agent will work fairly with them through out the process. The law requires that the agent be truthful and fair but it also places fidelity and limitation on the seller's agent as to what they can do for the buyer. Therefore, it is important that the buyer seek out and find a Buyer's agent that will best meet their needs.
A Buyer's agent works only for the buyer. The buyer's agent will assist their client in negotiating the terms of the contract. They will provide and or assist the buyer in finding the information that the buyers need to make a proper decision on the purchase of a property.
Unless there is a signed Buyer's Agency Agreement, the agent that is working with the buyer A certain information that the agent cannot disclose to the prospective buyer even if they know the answer to the questions below.
- The reason that the owner is selling the property.
- Any concession that the seller is willing to negotiate.
- Any conversations between the seller and the agent.
- Any disclosed information that would harm the seller and/or give the buyer an advantage in the contract negotiations
In most circumstances, no extra cost involved with signing a Buyer's Agency Agreement. Commissions paid to agents in a sales transaction are usually paid at closing by the seller.
Intermediary
A broker may act as an intermediary between the parties if the broker complies with the Texas Real Estate License Act. The broker must obtain the written consent of each party to the transaction to act as an intermediary. The written consent must state who will pay the broker and, and in conspicuous bold or underlined print , set forth the broker's obligations as to intermediary. The broker is required to treat each party honestly and fairly and to comply with the Texas Real Estate License Act. A broker who acts as an intermediary in a transaction:
- Shall treat all parties honestly;
- May not disclose that the owner will accept a price less than the asking price unless authorized in writing to do so by the owner;
- May not disclose that the buyer will pay a price greater than the price submitted in a written offer unless authorized in writing to do so by the buyer; and
- May not disclose any confidential information or any information that a party specifically instructs the broker in writing not to disclose unless authorized in writing to disclose the information or required to do so by the Texas Real Estate License Act or a court order or if the information materially relates to the condition of the property. With the parties' consent, a broker acting as an intermediary between the parties may appoint a person who is licensed under The Texas Real Estate License Act and associated with the broker to communicate with and carry out instructions of one party and another person who is licensed under the Act and associated with the broker to communicate with and carry out instruction of the other party.
What to Look for in an Agent
In addition to an agent being trust worthy they need to be the type of individual who is a dedicated professional who will work with you until your goals have been met.
They should be familiar with the area churches, schools, clubs, parks, medical facilities, doctors, shopping and transportation, as well as the real estate market. All of these affect your quality of life.
Also, look for an agent that is a member of the REALTORS association because they must adhere to its strict code of ethics.
