Buyer Representation in Texas

Many people think that if a real estate agent is showing them houses, that means the agent is their agent and looking out for their best interests. This is not the case in Texas, which is why the Texas Real Estate Commission requires that real estate agents go over the Information About Brokerage Services before they start showing you houses. That document explains that there is a difference between the various roles that agents perform in the home buying/selling process.

With over 35 years of combined experience in the real estate business and close to a billion dollars of sales volume closed, we, the Licona Team aim to be the best for our clients in all facets – from the initial conversation to the closing. We want to ensure that our clients understand the paperwork, including the Information About Brokerage Services and other Buyer Representation documents, and at the same time discuss their needs and propose a game plan before we show them houses that fit their needs and budget.

Here is a quick overview of our home buying process to give you an idea of how we will be working with you from start to finish:

1. Find a Real Estate Agent

Contact the Licona Team and we will schedule a complimentary buyer consultation with you to discuss your needs.

2. Discuss Home Preferences

Meet with our expert real estate agent to discuss the home buying process and current market trends.

3. Get Approved

A pre-approval letter will give you, your lender, and the home seller confidence in knowing the home that suits your budget.

4.House Hunting

Start home shopping with our Licona Team agent and find your dream home.

5. Make an Offer

Our team will guide you through making the right offer on your dream home providing a market analysis and strategy conversation.

6. Option & Earnest Money

Option and earnest money due within 3 days. Option money is estimated to range from $100-500 and earnest money is estimated 1–2% of the sale price.

7. Get a Home Inspection

Order an inspection of the home. Our agent will negotiate any necessary repairs.

8. Home Appraisal

Your lender will order an appraisal on your behalf.

9. Clear to Close

Lender give the ‘clear to close’ and reviews your closing disclsoure numbers with you ~2-3 days prior to closing.

10. Your Home Is Funded

Sign off on closing paperwork, obtain keys, and you’re ready to move!

Buyer’s Agent vs Subagent

Now that you already have an idea what the Buyer’s Agent role is, it is helpful to understand the difference between a Buyer’s Agent and a Subagent. This will save you from entering into a contract that has the seller’s best interests over yours. By default, a real estate agent who is a member of the MLS is always representing the seller as a Subagent, UNLESS they have a signed Buyer’s Representation Agreement with the buyer to become the Buyer’s Agent.

These are some examples of the various roles of how a Buyer's Agent can work with a home buyer vs. how a Subagent can work with a home buyer.

Buyer’s Agent

• Honesty
• Complete loyalty to buyer’s needs
• Keep information confidential – buyer can talk freely
• Full disclosure of all facts and pertinent information: Total days on market, full price history, opinion on price, etc.
• Advice and opinion along with facts; educate the buyer
• Provide an opinion of value CMA on potential homes
• Provide price counseling
• Suggestions made in buyer-client’s best interest
• Prepare offer & negotiate on behalf of buyer
• Attempt to strengthen the buyer’s negotiating position
• Attempt to solve problems and close the transaction to satisfy the buyer

Subagent

• Honesty
• Complete loyalty to seller’s needs
• Relay to seller all information received from buyer
• Disclose just material facts regarding properties discussed: Current price, current days on market, no price opinion…
• No advice regarding property, only the facts 
• Cannot give an “opinion of value” CMA unless it supports the seller’s listing price
• No price counseling
• Suggestions made regarding financing or any other terms must benefit the seller
• Negotiate on behalf of the seller
• Attempt to strengthen the seller’s negotiating position
• Attempt to solve problems and close the transaction to satisfy the seller

Working with a subagent sounds great upfront, but the bulk of the issues come in during the price and offer strategizing process, along with "repair" negotiations and then it's just a downhill spiral from there. Remember, it is common practice that the seller is in an agreement with their agent to offer the co-broker fee to the buyer’s broker.  As a buyer, you do not traditionally save that buyer agent commission by avoiding the hiring of a buyer’s agent, but rather it leaves the listing agent and their brokerage to retain the entire commission that was agreed upon being paid by the seller.  That said, some mistakes could be avoided in the first place if people learned from the mistakes of others. As Eleanor Roosevelt said, “Learn from the mistakes of others. You can’t live long enough to make them all yourself.” 

Our “say-do” ratio is 100%.  You’ll find that we’ll be a committed ally to negotiate on your behalf and have the backing of a trusted company.