Buyer Beware:Don't Be A BUBBA!

Before even looking at properties for sale, you need to decide whether or not you want to be a "BUBBA" (Buyer Unrepresented by Buyers Broker or Agent)!

What happens if you're shown properties by the listing (Sellers) broker or builder's representatives and then decide you should have your own Buyers Broker?  You may be out of luck, BUBBA, because you've already dealt direct.  The sellers broker or builders representative might claim to be the "procuring cause" for your purchase and you could owe an extra commission.

What happens if you don't hire your own Buyers Broker and later discover that you paid too much or that the property has problems (which happens all too often when buyers deal direct with sellers, builders' representatives or "limited service" [discount] agents)?  You'll only have the person in the mirror (BUBBA) to blame.

Many states, including Texas, now require written Buyer Rep Agreements for buyers to expect or receive full fiduciary representation by "their" agent or broker.  A Buyer Rep Agreement is simply a pledge of loyalty between you and your broker or agent.  Without a Buyers Representation Agreement, you're on your own and "fair game" to any and every real estate licensee and builders' representative out there.  Many are good, some are bad and some are downright ugly!

REALTORS^® are required by their Code of Ethics to ask if you have a brokerage agreement with another REALTOR^®, but many forget to ask.  Unless you're a BUBBA, it's your responsibility to immediately inform prospective sellers, real estate licensees and builders' representatives that you have already hired your own Buyers Broker or Agent.  That's simply honest and fair to everyone and prevents problems later on.

(Many thanks to Robert Delmar, Broker Associate, ABR, e-Pro500, Winterhaven, Florida)