If I go look at a house with a realtor, does that person become my realtor? Do they use my bank or theirs?

Asked by Marvin Stephens, Fort Worth, TX Sat Apr 23, 2011

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Ronda Allen, Agent, Plano, TX
Sat Apr 23, 2011
If a licensed real estate agent showed you a home without making sure that you were their client first, then they don't deserve you. They didn't follow rule#1 when making first contact with a prospective client - give them a copy of the IABS - Information About Brokerage Services. If they had done that, you would know the answer. If you were my client, you would not only have the IABS, but you would have signed off on the Buyer Representation Agreement in my office, prior to ever getting in my car and going out to view properties. Did they meet you there and not make you come into their office? Not advised, and not safe for either of you. Realtors don't have banks. We have established networks of individuals who are available to help, if our clients request such resources. But, we don't force specific banks on people. Be forewarned, though. We've had good and bad experiences in the real estate market in Texas, and that info can be valuable to you in selecting a lender for your home loan. Take a list of preferred lenders and interview them, along with your own choices. The good ones stand out even on the phone. And, the best ones are going to want you to go into their offices to meet with them, too. I've found that the best agents and lenders do business face-to-face, and not over the phone or out in the field.
Have a blessed day!
1 vote
Dorene Slavi…, Agent, Torrance, CA
Sat Apr 23, 2011
Dear Marvin,
Yes I would hope so, since they are spending their time with you and taking you to see property. Please be upfront with them if you do not want to use their services. You are free to use any bank you wish, but do check out all the rates as they are not the same. Compare and then choose!
1 vote
Greg Fowler, Agent, Dallas, TX
Sat Apr 23, 2011

As the homebuyer, you are in complete control of the process. As the relationship with a REALTOR begins, the REALTOR works for the Seller of the property, just as any salesperson in a store works for the owner of the item being sold.

If you so choose, you can sign a Buyers Representation Agreement which creates a fiduciary relationship between the REALTOR and you - in other words, the REALTOR becomes "your" REALTOR, and now works for you rather than for the Seller. As you do this, you make a commitment of exclusivity to that REALTOR - you commit to using their service, they commit to working in your best interest.

Before entering into this type of agreement, some people choose to interview several REALTORS to find one they like and trust.

As for the lender, you are free to use whichever lender you choose. Your REALTOR can certainly recommend a few, we all know several. However, where you obtain your loan is your decision. Your REALTOR will likely advise that is best to get yourself pre-approved with a lender early in the search process - it provides a nice certification that you will be able to perform ont he contract that you will ultimately enter.

I hope this has helped to clarify the relationship. If you have further questions, I would be happy to discuss them with you.

Good Luck!!

Greg Fowler
Keller Williams Dallas City Center
1 vote
Lee Childers, Other Pro, Alvarado, TX
Sat Apr 23, 2011

Once you sign a Buyer's Representation Agreement with a realtor they officially become your representative in your real estate transaction. If you liked the person who showed you the house then by all means have them represent you. To answer the second part of your question; if you are taking out a loan to buy the property you will be using a lender who will work with you to take care of the financial part of the transaction. I'm sure your realtor can refer you to several lenders that you can choose from.

Lee Childers
Century 21 Judge Fite Co.
1 vote
T.E. & Naima…, Agent, Dallas, TX
Tue Apr 26, 2011
The second question is easy: Realtors® may suggest a lending institution to assist their customers and clients, but I can't think of a circumstance that obligates you to use "their" lender.
Many times we recommend a lender because they can deal with the situation of the buyer or we have dealt with the person before and know they're good at what they do.
If you have a lender that you're confident can help you, you should stick with what you want, although a second opinion won't hurt.
If you don't have a lender, at least start with the suggested person and try at least one more lender, to be sure.

The first question is a little more complex.
Think about it as a food server at a restaurant. Realtors® work solely for commission, similar to waiters. If you talk to a waiter, discuss food items and then order food from one waiter, you wouldn't tip a different waiter. That would be ethically unacceptable.
But if your waiter doesn't meet your needs in some way, you need to ask for help from the manager (and maybe get a different waiter). The bad waiter will eventually quit his job if he doesn't change, simply because he won't earn enough.
Similarly, Realtors® leave the business when they can't please customers and earn income.
Are you legally bound to a particular Realtor®? No, unless you sign a representation agreement (for them to be your server).
Web Reference:  http://www.SumnerRealty.com
0 votes
Gilbert Wash…, , Katy, TX
Sat Apr 23, 2011
Hi Marvin,
Just because you look at a house doesn't mean the realtor represents you. The realtor only represents you when you sign an exclusive 'Buyers Rep Agreemment", and or if you use that realtor to write and submit an offer for said home that they showed you. If a realtor asks you to sign a Buyers Rep Agreement, and that realtor is a competent agent that will be to your benefit because he or she will work hard in your best interest.
0 votes
Sloan Yorek, Agent, Fort Worth, TX
Sat Apr 23, 2011

You've received some really great and correct answers here.

An agent is not only someone who just physically shows you homes, this person actually will REPRESENT you in the home showing process, the offer preparation and submission process, the negotiation process, etc. An "agent" has a fiduciary responsibility to protect you (the client) and look out for your best interests. An actual agreement should exist between client and agent, but as the answers below indicate, it would be a kind courtesy to only incorporate someone and use their time if you DO actually want to engage them as your AGENT for your purchase or sale. Agents do not get paid until a client buys or sells something, so unfortunately most of the time, agents end up doing a LOT of work for free when clients just "vanish" or are otherwise not seriously shopping or looking. I realize that may sound harsh and that is not the intention at all. Think of it like this, agents sometimes work for days/weeks, maybe even months with a client before finding "just the right home". That agent is workign without pay all that time, until that client purchases a home and it closes at the title company. Your agent really wants to do a great job for you! But, any and every agent deserves the same loyalty from the client as what they deliver to the client.

YOU, the buyer, the client choose your lender. However, your agent most likely has some recommendations. The reason for this is that your agent sees these types of transactions and processes EVERY day and probably by now has a pretty good idea of which lenders and/or mortgage brokers or mortgage professionals work the best for their clients. You are not obligated to use the services of anyone whom your agent refers, but you may want to consider that your agent does this stuff EVERY day, and may have some truly great suggestions and/or recommendations.

Your agent wants what is best for you. Just be sure you're working with an agent whom you trust and feel confident using. If for some reason you do not want to actually work with or hire a person you've been seeing homes with or communicating with, I promise you, that person would appreciate knowing #1. how they can better meet your needs, or #2. if you do intend to actually buy with them or not, #3. if you're not pleased with their service let them know, allow them to fix it or let that person know you're moving on.

In YOUR job you have to manage your time and prioritize based urgency and seriousness and you can not work for free--- your agent must do the same thing. We all must.

Give your agent a chance. If that person has been working diligently for you, they most likely really truly want to do a great job for you. If they do not, kindly say "goodbye" but let them know.

Best of luck to you in your search and endeavors.
Kind Regards,
Sloan Yorek
0 votes
Christopher…, Agent, Tarrytown, NY
Sat Apr 23, 2011
Hi, The answer to this question depends on whether you choose to work with them or not. Just because an agent shows you a home doesn't mean you have to work with them. The only time you are bound to an agent is when you sign an "Exclusive right To Represent" contract. This contract contains mutually agreed upon terms between you and the agent, including length of time. These can be broken as well if things don't work out. In the end it is your choice who you want to work with. Keep in mind if you go directly to a listing agent to see a property they are selling, they represent the sellers best interest not yours so it's smart to work with a buyers agent.

Christopher Pagli
Licensed Associate Broker
Accredited Buyer Representative
GREEN Designated Agent
William Raveis Legends Realty Group
Web Reference:  http://raveis.com/chrispagli
0 votes
Jim Carter, Agent, Keller, TX
Sat Apr 23, 2011
You as the potential client determine whether or not the REALTOR becomes your agent. Hopefully the REALTOR provides you excellent service and you get along with them and have a comfort level about working with them. If you do then you will enter into an agreement with them called a Buyer/Tenant Representation Agreement which binds them to represent you and for you to use them as your agent.

You are not required to use any bank you do not wish to use for financing. You may select a lender of your choice. The REALTOR may give you some differnet lenders to talk with but you ultimate;y select your lender.

Hope this helps.

0 votes
Dallas Texas, Agent, Dallas, TN
Sat Apr 23, 2011
Most Realtors have you sign a buyers rep agreement, YOU can use any lender you like.

If you require an agent contact me , HOWEVER most agents will request proof of lending , any sales offer will be submitted with banks approval for a loan OR your offer COULD be declined

Lynn911 Dallas Realtor & Consultant, Loan Officer, Credit Repair Advisor
The Michael Group - Dallas Business Journal Top Ranked Realtors
0 votes
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