Representation in Texas has some differences
When moving to Houston, it is critical for home buyers to understand how representation works in Texas.
In fact, Texas law requires all real estate license holders to provide an “Information About Brokerage Services” form at the first substantive communication with prospective buyers, tenant, sellers and landlords. This form explains representation and the duties of the license holder.
But, representation, and the right to representation can be a tricky thing for many newcomers to understand. That is because real estate laws and contracts vary from state to state, and can be dramatically different in other countries.
So, in addition to providing “Information About Brokerage Services” to their relocation clients, Realtors generally go a step further to explain that representation is an important right that they have as home buyers.
“The buyer has the opportunity to be represented and have an advocate who treats them with fiduciary care, and who puts their needs absolutely first,” said Christi Borden, a Realtor with Better Homes and Gardens Real Estate Gary Greene. “A buyer can come to Houston and buy a house without an agent, but they won’t know the local market, and the Internet does not give a true picture of the market.
“Only a Realtor who is actually working and selling in that particular area truly understands the nuances of the market.”
Many times, home buyers drive around different areas and neighborhoods on their own, and call the agents listed on the for-sale sign to inquire about different properties they see. When they do so, home buyers might not realize that the listing agents are solely representing the sellers, and cannot also represent the buyer.
The listing agent has a fiduciary duty to the seller, and will be acting in the best interest of the seller. So, the buyer would need a buyer’s agent in order to have representation in a real estate transaction.
“I never understand why a buyer would want to go it alone, when there are so many wonderful, talented agents who can add value to the transaction,” Borden said. “Whether it’s helping the buyer get more money off of the sales price, or providing better negotiations on the repairs, or just being there to help them through the rough spots, the buyer’s agent is a true advocate for the buyer.”
Likewise, Borden said that relocation home buyers often walk into a builder’s model home, and don’t realize that the sales person is actually working for and representing the builder.
She said that one of the risks for the home buyer is that they might end up overbuilding a home, and later be unable to recoup the costs when they get ready to sell the property.
“I always look at what could impact the future sale of the property, and I share that with my clients, so that they can make a good decision based on all of the facts.
“They might still decide to buy the property, but at least they know that backing up to a highway or a strip center, for example, could have a serious impact on their ability to sell their property, or make the money they hope to make when they sell it,” said Borden.
Helena Jowers, a Realtor with Coldwell Banker United Realtors, is originally from Sweden and moved to Houston nearly 20 years ago. She said that she knows just how foreign the Texas real estate transaction can be to people from other countries.
When assisting international home buyers, Jowers said that she fully explains what she will be doing as their agent.
“I explain that I will be assisting them with finding a home, and I walk them through the process of everything that will happen,” said Jowers. “I tell them that I will be with them throughout the whole transaction and beyond, from making appointments, to taking them out and finding a home, to writing a contract and through the negotiations process.”
She said that because real estate is transacted very differently in Texas than it is in other countries, that she has indepth conversations with her international clients about what their rights are as buyers.
“On the negotiation part, for example, I explain that they have the right to terminate the contract for any reason during the Option Period. This is very critical for them to understand, because that doesn’t exist in Europe or South America or wherever they might be coming from,” said Jowers.
“I want to educate the buyer, explain their rights, explain the process, and tell them what they can do and why they need to do it, so that they can make a wise decision.”
Michelle Sandlin is an award-winning writer, journalist and global mobility industry expert. Follow her on Facebook: www.facebook.com/TheMichelleSandlin and on Twitter: @MichelleSandlin. Also visit “On the Move” at blog.chron.com/onthemove.
“I want to educate the buyer, explain their rights, explain the process, and tell them what they can do and why they need to do it, so that they can make a wise decision.” Helena Jowers