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Texas real estate brokers and salespersons are licensed by the Texas Real Estate Commission (TREC). An important broker duty is to explain agency relationships as defined by Texas law and TREC regulations by providing customers the disclosure Information About Brokerage Services at their first meeting or substantive discussion about real estate or brokerage services.

Although the distinction gets clouded, it’s important to note that not all licensed brokers or salespersons are Realtors®, but all Realtors® must be licensed brokers or salespersons to sell real estate in Texas. Realtor® membership is voluntary, and is not necessary to legally perform as a broker or salesperson in Texas.

Salespersons are agents of the broker, working under the broker’s license. Salespersons represent the broker’s business when they work with buyers and sellers and brokers are responsible for the acts of their salespersons. When you sign an agreement with a salesperson, the agreements made are in the broker’s name, not the salesperson’s.

Why select a Realtor® for your buyer broker?

Buying your home is one of the most important purchases you will ever make, and having a knowledgeable professional on your side makes good economic sense. Realtors® are members of the National Association of Realtors® and they subscribe to rules and ethics in their business practice. Educated, trained, and licensed, your Realtor® is prepared with market knowledge and experience to help you with your home purchase.

Where do you find a buyer broker?

Buyers often rely on personal referrals, but more buyers are starting the process on the internet by searching for local brokers through company websites. The internet has empowered the real estate consumer like nothing else, and savvy buyers are using the web to find their home, learn about services, and compare brokers. Today, the company website is the digital storefront that provides you information about the business and brokerage services from the convenience of your home or office.

Who does the buyer broker work for?

Buyer brokers represent buyers through agency relationships; the listing broker typically represents the interests of the home seller, or represents both home seller and buyer in a limited role as an Intermediary.

In recent years, Texas agency law has evolved to provide agency representation to the buyer as a Buyer’s Representative. A buyer broker representing the sole interests of the buyer has executed a Buyer’s Representation Agreement with the buyer client. As a first-time homebuyer, working exclusively with a buyer broker can give you peace of mind as you navigate the process.

Should you work with more than one buyer broker?

It’s a good idea to interview more than one, but your interests are best represented through an exclusive agency relationship. If you have an agency relationship with a broker, you have agreed to work only with that broker. As a Texas home buyer, if you don’t have an agency relationship with a broker, the broker you are working with is representing the seller, limiting the amount of assistance you’ll receive during the process.

What does the buyer broker service cost you?

Fees are negotiable as required by law. Brokers are free to set their own fees as a matter of business practice or policy. Brokers cannot set fees in consultation or collusion with other brokers and cannot represent that their fee or commission is an industry standard.

Typically, the listing broker receives compensation from the owner of the home for sale. The listing broker, through a cooperative agreement, shares the fee with a broker who finds a buyer for the home. In Texas, a buyer broker can represent your sole interests and receive compensation from the listing broker, providing a valuable service at no out-of-pocket cost.

In certain cases, the home seller offers no fee, and the buyer and the buyer broker will negotiate a fee paid by the buyer. Agent compensation is discussed in the Buyer’s Representation Agreement, and your broker will provide you with the details about fees.

What services do buyer brokers provide during the home buying process?

Representation
Buyer brokers help home buyers with questions about agency representation, explain the agency options, and guide home buyers through the documentation necessary to establish a working broker-client relationship.

Financing Recommendations
Buyer brokers are a valuable source of information about financing, providing recommendations for the most efficient, competitive, and reliable lenders. Brokers help buyers further by determining their purchasing power and calculate their out-of-pocket expenses.

Home Search
Using market knowledge and MLS tools, buyer brokers help home buyers prioritize their housing options by evaluating listing information and finding the best alternatives. If you are new to the city, or an area of town, your broker can provide answers to your relocation questions.

With your selections made, your broker will make appointments to show you homes, point out features and ammenities noted in the MLS, and follow up with any questions you may have for the home seller.

Negotiations & Offers
When you’ve made a purchase decision, your buyer broker will guide your through the purchase documentation, answering any questions you have, including advice on the suggested offer price and terms of the sale — consultations you won’t get without exclusive representation.

Coordinating Your Purchase & Closing
From contract to closing, your buyer broker will manage the calendar by coordinating the activities of lenders, title companies, appraisers, surveyors, inspectors, and other service providers. Your broker will make sure that the terms, conditions, and contingencies of the purchase contract are met according to the agreements between buyer and seller.

Finally, your buyer broker will help you review the closing documents and settlement statements at your closing, representing your interests throughout and after the home buying process.