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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 use a Realtor® as your listing broker?

Selling your home is one of the most important transactions you’ll undertake, 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 sale.

Where do you find a listing broker?

Home sellers often rely on personal referrals, but more 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 more home sellers are using the web to 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 listing broker work for?

Listing brokers represent home sellers through agency relationships formed by written listing agreements between the broker and client. Listing agreements vary and your listing broker can explain the various forms of representation available to home sellers. Typically, the listing broker represents the interests of the home seller exclusively, or represents both home seller and buyer in a limited role as an Intermediary.

Intermediary agency alters the broker-client relationship. Intermediary relationships occur when a broker represents both the home seller and buyer in the same transaction, usually as a result of an in-house deal. Intermediary limits the representation you’ll receive in the process, so it’s important to understand its advantages and disadvantages.

Should I work with more than one listing 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 exclusive agency relationship with a broker, you have agreed to work only with that broker. The exclusive right to buy or sell empowers the listing broker to represent your sole interests, except when working as an Intermediary.

How is the listing broker compensated?

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.

Listing brokers receive compensation from the home owner as detailed in the listing agreement. Traditionally, brokers have charged contingent fees based on a percentage of the property’s sale price. In exchange for your promise to pay the contingent fee at closing, the broker pays all of the out-of-pocket expenses related to the sale of your home, usually assuming the loss if the home does not sell.

Brokers may employ other fee schedules such as upfront or retainer fees, pay-per-service fees, or limited fees based upon limited services. Real estate brokerage is a competitive industry and offers more services choices for consumers than ever before. While traditional brokerage services remain prevalent, non-traditional brokers are providing consumer options that save money.

Should listing brokers offer to cooperate with other brokers?

In order to provide the home owner with the widest possible exposure to potential buyers, the listing broker, through a cooperative agreement, usually agrees to share the broker fee with a cooperating broker who can bring you an offer from a qualified buyer. Most home sales involve two brokers, acting in cooperation, to complete the real estate sale.

Listing brokers may cooperate with subagents or buyer brokers to bring about the sale. Subagents, also representing the seller, come from other brokerage offices. Buyer brokers also come from other brokerage offices but differ from subagents because they have no fiduciary duty to the seller — they exclusively represent the buyer.

What services do listing brokers provide during the home selling process?

Agency representation
Listing brokers help home sellers with questions about agency representation, explain the agency options, and guide home sellers through the documentation necessary to establish a working broker-client relationship. Listing brokers fulfill their fidiciary duties to the client by representing the seller’s interests in home selling process.

Pricing recommendations
Listing brokers are a valuable source of information about current housing market conditions, including information about current listings, closed sales, inventory levels, days on market and other factors necessary to properly position your home for sale in a competitive marketplace.

Preparing you and your home for sale
Listing brokers explain the disclosures, notices, and agreements that document the home sale. Your broker will explain the Seller’s Disclosure and assist in its completion. The broker will also help you assemble you personal home documents and make them available to interested buyers for review.

Listing brokers will discuss your home’s appearance and “showability.” Before embarking on expensive preparations, the broker can help you prioritize your efforts on the most profitable ones. Brokers provide you with insight, recommendations and feedback essential during the home selling process.

MLS access & marketing
The Houston Association of Realtors Multiple Listing Service (HARMLS) provides exposure to thousands of local real estate agents and their qualified buyers. HARMLS listings are available for viewing across the internet through participating sites like HAR.com, Realtor.com, and SterlingResidential.com, providing broad marketing exposure not available anywhere else — an essential marketing tool available only through an HARMLS member broker.

In addition to MLS marketing, listing brokers employ a variety of proven marketing techniques to generate buyer interest. Yard signs, direct mail advertising, custom flyers, digital photography, virtual tours, open houses and other promotional activities can get the traffic moving.

Showing your home
Your listing agent will explain how to prepare the house for showing including securing any personal property, valuables, or medications. Security and privacy are home seller concerns that should be addressed and disscussed by your listing broker.

With traffic moving, you need professional assistance to handle the showing appointments. Only buyers escorted with licensed HARMLS members will have access to your home, and by appointment only. Most HARMLS members employ electronic lockboxes that allow listing brokers to track and monitor access to your home.

Negotiations & offers
When you receive an offer, your listing broker will guide you through the terms of the documentation, answering any questions you have, including advice for preparing a response. Your listing broker will be screening buyer qualifications, checking on the buyer’s financing, and negotiating terms with the buyer broker. Your listing broker is your correspondent and confidant during the negotiating process, helping you evaluate the quality of offers you receive.

Coordinating your sale & closing
From contract to closing, your listing broker will manage the home sale by monitoring and coordinating the activities of lenders, title companies, appraisers, surveyors, inspectors, and other service providers.

Finally, your listing broker will help you review the closing documents, calculate your settlement expenses, and verify the settlement statement amounts at closing. Your listing broker ensures that the terms, conditions, and contingencies of the purchase contract are met according to the written agreements between you and the buyer.