The investor advantage
Buyer Representation Can Be Free
A lot of people assume that hiring a buyer's agent means writing a check. On many Houston purchases, including new construction, the seller pays the broker commission. When they pay the full amount, the representation can be free to you. It depends on the seller or the builder, the property, and the agreement you sign.
What you are hiring me to do
The fee pays for the work before you own the house. I manage short-term and long-term rentals here, and I bring that into the purchase. A rent you can live with. The rules that decide which use is open. The cash the deal actually requires. More than one way out. The agreement names that representation. It comes before the first showing, so you know who is on your side of the table while the numbers are still a choice. The lender's dollar amount comes even earlier. Find out what you can buy before you shop.
We write the fee down first
Before I show you a house, Texas law requires a written agreement. The same is true if we are not touring and I am presenting an offer for you. The agreement names the services, an end date, whether it is exclusive, and that I represent you. It also names the broker's compensation: the amount or the rate, and how that number is set.
The agreement has to say, in plain language, that the compensation is not set by law and is fully negotiable. The Texas Real Estate Commission does not set the fee. You and I set it in that document, before the first showing. The statute is Occupations Code section 1101.563.
Who pays it
The agreement sets what the broker is paid. Who writes the check is a separate fact, and I will tell you which of these applies to a house before you tour it.
- The seller pays it. On a resale, that is a term in the purchase contract. On new construction, a builder often offers a co-op commission. When they pay the full amount in the agreement, you do not pay a separate fee for the representation. That is the case people mean by free.
- The seller pays part of it. The rest follows the agreement, unless we change the agreement before you are committed to that amount.
- You pay it. That is the case when the seller or the builder offers nothing, or when you choose to pay the broker directly.
What you still pay for
The commission is for representation on the purchase. The price of the house is still the price of the house. Taxes, insurance, HOA dues, repairs, and the other costs in the expense and fee breakdown are still part of owning it. Cash to close is its own list: cash needed before the first rent check. What the house might earn is the income analysis. Getting out later is the resale and exit strategies. After the contract is signed, the rental check on a resale is the option period. Representation does not stretch that window.
Property management after you own the house is a separate service. Buying with me leaves management as its own decision.
Know who pays before you tour
Some sellers and builders pay the full amount. Some pay less. Some pay none. The number that binds you is the one in the agreement you sign, read against what that seller or builder will actually pay on that property. This page is general information for a Houston purchase. Legal advice is a separate conversation. The Information About Brokerage Services form explains how brokerage works in Texas. A house that looks affordable still has to be a house you are allowed to rent. That check is the restriction review.
Let's talk while this is still an idea. I will walk you through how representation works, and when the seller pays for it.