Step 2
Finding a Broker
The interview process to find a Realtor is very important, almost as important as your decision to purchase a home. The relationship you form with your Realtor should be one that survives the home buying process. This means you should feel comfortable in contacting your Realtor whenever you have ANY question about the home buying process, past, present or future.
Before you begin interviewing Realtors, it is important that you understand the various Brokerage Services in Real Estate Transactions. There are several basic relationships that can be made in representation, but here we are speaking about basic Buyer Representation.
If the Broker represents the Buyer, the Broker then becomes the Buyer’s agent, by entering into an agreement to represent the Buyer, usually through a written Buyer Representation Agreement. A Buyer’s agent can assist the owner but does not represent the owner, and must place the interests of the Buyer first. The owner should not tell a Buyer’s Agent anything the owner would not want the Buyer to know because a Buyer’s Agent must disclose to the buyer any material information known to the agent.
There are also circumstances wherein the Broker may represent both parties to a transaction. This relationship is called an Intermediary Relationship, and the Broker must obtain the written consent of each party to the transaction to act as an intermediary. A broker who acts as an intermediary in a transaction must treat all parties honestly and fairly, and comply with the Texas Real Estate License Act. In an intermediary Relationship, the Broker 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, nor may the Broker 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. In any case, the Broker may not disclose any confidential information unless the information materially relates to the condition of the property.
If you choose to have a Broker represent you, you should enter into a written agreement with the Broker that clearly establishes the Broker’s obligations and your obligations. The agreement should state how and by whom the Broker will be paid. Your payment of a fee to a Broker does not necessarily establish that the Broker represents you. If you have any questions regarding the duties and responsibilities of the broker, you should resolve those questions before proceeding.
Remember, the Broker you choose is working for you, and the most important thing your Broker can do for you at this time, is to listen to your wants and needs, and introduce you to homes that meet all your particular criteria.
