Types of Agents
Hiring the wrong real estate agent can be very hazardous to your WEALTH!
attention home buyers!
The Vast Majority of Agents
are Dual Agents!
In Texas, without a written or oral agreement, ALL agents represent the seller. It’s their job to get you to spend more money and to assume more risk. When you’re buying a home, that’s NOT what you want! To protect yourself, it’s imperative that you learn about the different types of agents.
Dual Agents
A dual agent represents the buyer and the seller in the same transaction. The broker collects a double commission and the parties have no representation. Consumer advocates call dual agency the biggest scam in American real estate. In fact, dual agency is illegal in every industry except real estate.
intermediaries
Texas is a dual agency state, except it’s called “intermediary agency.” It means the Broker can represent both the buyer and the seller in the same transaction with written permission from the parties, which is most often requested shortly before the buyer is ready to make an offer.
regular buyer's agent
Regular buyer’s agents work for companies like Keller Williams, EXP Realty, Redfin, and others. A buyer’s agent becomes an intermediary when their buyer purchases an in-house listing. That means the agent that’s been showing you around is now obligated to tell the seller everything they know about you and to negotiate against you.
exclusive buyer's agents
Exclusive Buyer’s Agents represent buyers 100% of the time. There is never a conflict of interest that will jeopardize your negotiating position. Ever. Exclusive Buyer’s Agency is endorsed by all the consumer good guys from Suze Orman to Dave Ramsey, and dozens of publications like the New York Times, Wall Street Journal, Money Magazine, Motley Fool, Bloomberg, and lots more.
dual agency
How it Happens
Here’s a common scenario.
Suppose you attend an open house; or drive by home with a sign in the yard; or see a beautiful home listed for sale on Zillow. You call the number on the yard sign or complete an online form to request more information from the listing agent. This agent was hired by the owners of the house to sell their property and to get them as much money as possible.
The listing agent offers to show you the house, and you schedule a showing. At the property, they walk you through the home, highlighting all the positive features and glossing over or outright not mentioning any negatives. Texas is a buyer beware state; that means it’s up to you to uncover problems with the properties condition or valuation on your own.
You like the house but are not ready to commit, so the agent offers to show you some other homes that you might like. Here’s where the trouble begins.
While looking at the first house, the agent represented the seller. Now they are showing you other agent’s listings in which they would represent you as a buyer’s agent, should you opt to buy one of those homes.
It’s a convoluted mess, it’s unfair to both the seller and the buyer, and the only ones who win here are the Realtor and their broker. The only way to avoid these conflicts is to work with a single agency, like HelpUBuy America.
preserve your best interests
Work with an Exclusive Buyer’s Agent
Exclusive Buyer’s Agents represent home buyers only. This exclusivity to the buyer ensures there is never a conflict of interest that might jeopardize your negotiating position. In fact, Exclusive Buyer’s Agents will:
Keep your motives and budget confidential
Protect your best interests at all times
Educate you about market conditions and the home buying process
Perform market price comparisons and protect you from over-paying for a home
Have a legal and ethical obligation to put your interests first!
Negotiate exclusively on your behalf, obtaining the best price and terms
Fulfill fiduciary duties and adhere to high standards of ethics and integrity
Provide the true facts (good and bad) as to value, market/neighborhood conditions, and obvious physical defects
Provide these services and more at no additional cost to you
x
Here’s a Common Scenario
Suppose you attend an open house; or drive by home with a sign in the yard; or see a beautiful home listed for sale on Zillow.
You call the number on the yard sign or complete an online form to request more information from the listing agent. This agent was hired by the owners of the house to sell their property and to get them as much money as possible.
The listing agent offers to show you the house, and you schedule a showing. At the property, they walk you through the home, highlighting all the positive features and glossing over or outright not mentioning any negatives. Texas is a buyer beware state; that means it’s up to you to uncover problems with the properties condition or valuation on your own.
You like the house but are not ready to commit, so the agent offers to show you some other homes that you might like. Here’s where the trouble begins.
While looking at the first house, the agent represented the seller. Now they are showing you other agent’s listings in which they would represent you as a buyer’s agent, should you opt to buy one of those homes.
In the meantime, you’ve given them a clear picture of your purchasing power and your level of motivation. If you decide to buy the first house, (or any of their company’s other listings), they have to turn you over to someone else in their office but would be legally obligated to tell their seller/client everything they know about you. And, from the seller’s standpoint, the agent used their house as a source of buyer leads. The seller most likely shared all of their secrets with this agent, only to have that information used against them if both the buyer side and seller side of the transaction are handled in-house with the same broker.
It’s a convoluted mess, it’s unfair to both the seller and the buyer, and the only ones who win here are the Realtor and their broker.
The only way to avoid these types of conflicts is to work with a single agency, like HelpUBuy America.
