Farm, Ranch, and Recreational Real Estate – Buyer Representation 101 – A Prerequisite

deer(4)Purchasing real estate is a major investment and certainly not one to be taken lightly. Anyone in the market to buy real estate should always be represented by their own qualified broker to insure that their best interests are protected. One should always remember that the listing broker has been hired by and is working for the seller. The listing broker’s fiduciary responsibility is to the seller. It is the listing brokers responsibility to protect the best interest of the seller and to sell their property to a buyer at the highest price possible.

Surprisingly, a large majority of buyers purchase real estate directly from the listing broker without being represented by their own qualified broker to protect their best interests. After all, when we go to make other major purchases such as buying a car, we simply go to a car dealer and work with one of the dealer’s sales agents. That car salesman is employed by the car dealership and rest assured, he is working to protect his or her best interest and that of his or her employer. When buying a car we don’t really have a choice. If we want a new car we must go directly to the dealer, however, when it comes to real estate we do have a choice. We have the ability and the right to hire our own qualified real estate broker that will be impartial and is not associated with the seller or the listing broker.

MallardsHiring your own buyer broker is your insurance that your best interests are protected. Buyer representation provides you with a professional real estate agent that works for you, with no fiduciary responsibility to the seller or the listing agent or broker. Your buyer agent can be invaluable in providing you with unbiased professional advice and information about a property’s quality, value, and potential to help you make informed decisions prior to making a purchase. A qualified buyer representative can also provide expertise in negotiating and can save you money when it comes time to negotiate on the purchase price or other concessions. And here is the best part, it doesn’t cost the buyer anything out-of-pocket. That’s right, the buyer’s broker commission is typically paid by the seller.

When buying a recreational hunting property it’s even more crucial that you have buyer representation. Recreational real estate is a specialized field requiring specialized expertise and knowledge of rural lands. That specialized expertise and knowledge may include knowledge of soils, water, native flora and fauna, agricultural practices, commodities, tax exemptions, wildlife habitat, and conservation and management practices, just to name a few. This is not exactly the kind of expertise and knowledge most real estate agents specializing in residential or commercial real estate possess.

south tx windmill at sunsetAlways remember that the listing broker was hired by and works for the seller. It just makes good business sense to hire your own representation to insure that your best interests are protected. Your buyer representative can handle most of the time-consuming leg work and provide you with unbiased professional advice and information about a property’s quality, value, and potential to help you make informed decisions prior to making a purchase. And last but not least, always make sure you select a brokerage firm that has the knowledge and expertise specific to the type of real estate that you are in the market for. By the way, did I mention there is no out-of-pocket expense to you the buyer?

 
 
Ed Ritter
Owner / Certified Wildlife Biologist / Licensed Real Estate Broker
Wildlife Management Enterprises, L.L.C.