WHY YOU NEED A BUYERS REPRESENTATIVE WHEN BUYING RURAL LAND NEAR HOUSTON

Searching for property listings on a website is a lot of fun but is just the beginning of the land buying process. The Internet does not replace the professional rural land broker. Buyers absolutely need a land broker to represent their interests and organize all aspects of the transaction. Don’t go solo when buying property in the country especially if you are not experienced.

The Buyers Representative Works for You.

The owner of the property listed on the website already has a broker. That broker is the listing agent. That listing agent has signed a contract to represent the owner. You need to have your own broker. That is not to say the listing agent will not treat a buyer fairly. They will. However, the buyers representative will provide many additional services to their client.

When you sign a Buyer’s Representation Agreement, you agree to work exclusively with a particular broker for an agreed upon period of time. It also often specifies a geographical area. This contract obligates your broker to be fully committed to you and not the seller. You are now a bonafide client rather than a customer and your broker has a fiduciary obligation to you. Compensation is not set by any board or commission but is negotiated between the land broker and their client.
The listing broker (who is not your broker) does not have to keep your pertinent information confidential and may convey it to their client the seller.

Having said all the above, a Buyer’s Representative Agreement is flexible. You don’t have to purchase any particular property and most brokers are willing to end the agreement when the buyer wants out.

Ask your land broker to provide a Buyer’s Representation Agreement for you to read. The Texas Real Estate Commission does not promulgate a Buyer’s Representation Agreement. However, The Texas Association of Realtors provides the Residential Buyer/Tenant Representation Agreement. Always read any document before signing. Seek an attorney’s advice regarding legal matters.

Choosing a Land Broker.

“You think you can’t afford a professional until you hire an amateur.” Red Adair.

If you want to buy property in the country, choose a rural and broker to work with. All serious real estate brokers (hopefully they are Realtors) specialize. They will be a pro in a particular property type; residential, retail, office, industrial, etc. Often they operate in a defined geographical neighborhood.

Professional land brokers are no different. They specialize in rural property such as farms, ranches, country estates, recreational acreage, weekend retreats and investment opportunities. Their geographical market will often include several counties. Their relationship networks in the land community will also be broad.

I recommend choosing a land broker with impressive credentials. The Realtors Land Institute (RLI) awards the Accredited Land Consultant (ALC) to individuals after a rigorous program of education and experience. Agents with the ALC designation represent the top tier of the rural brokerage community.

Work With Only One Land Broker.

After choosing your land broker stick with them. If a land broker is going to work diligently and spend a significant amount of time on your behalf, they will probably ask for a commitment from you. Sign a Buyer’s Representation Agreement with them. A successful outcome depends upon a high level of trust and cooperation between the client and their broker. Dealing with multiple agents will almost certainly complicate the journey and adds frustration and time to the process.

What Your Land Broker Will do for You.

Herding cats and pushing string is hard work. Hire a Rural Land Broker.

Save You Time and Frustration. There are a lot of decisions to be made and a proper order in which they need to be accomplished. Ask your land broker to provide you a list of decisions and steps to begin the process. They will likely begin with some questions for you such as type of property, budget and financing, minimum acreage, vacant or improved, road frontage, utilities, general location, and many more. Your land broker will help you avoid costly mistakes regarding pricing, selection of property not suitable for your needs, minerals, floodplain and many others.

Objectivity. Unlike the buyer, land brokers have little emotional involvement (and that is a good thing) in the process. They have the negotiation skills and temperament to maintain their composure and represent you properly. They have knowledge of the neighborhood, properties and comparable sales data and their expectations are based on experience. Their research goes beyond coffee house and cocktail party chatter.

Assist with financing. The purchase of any real estate almost always involves obtaining a loan. Before any real research regarding properties can begin, you will need to obtain a commitment from a lender as to the amount you will be able to borrow. Most lending institutions do not make rural property loans. Your land broker can help you with choosing a lender.

Organize the Process. Your land broker will research available listings and relay them to you. The next step will be to set up showings for properties you are interested in. They will assist in negotiations. They will assist with writing the earnest money contract. You will need help with inspections. They will guide you through the closings. A good land broker will help you with vendors and questions after the closing.

Ongoing Communication. Make arrangements with your land broker regarding frequency and type of communication. I contact my clients when an event occurs. I send documents by email. I will call at least once a month.

Knowledge of the Market. Your land broker will have a good feeling for the market. They will also begin collecting listings and also actual sales of comparable properties and provide them to you. Most land brokers are members of organizations of land agents which meet regularly and they will use these events to gather information relevant to your search. They are not tied to only their listings.

Arrange Showings. Multiple agents cause confusion. Let your land broker handle the details associated with showings. Your land broker will drive the neighborhood and conduct an inspection of possible candidates. There is no reason for you to look at all the available listings. They will prepare a property checklist for each showing and will arrange showings for only a shortlist of potential properties. This previewing process will save you a significant amount of time.

Earnest Money Contract. Your land broker will be familiar with the most current Farm and Ranch Contract. They will explain it to you, prepare the document and negotiate amendments and changes on your behalf. They will obtain various disclosures and other necessary property information from the seller’s agent. Always hire an attorney for legal questions.

Arrange for Inspections and Surveys. The earnest money contract will set forth the various inspections you want to be conducted. Your land broker will recommend knowledgeable inspectors and surveyors and arrange for the physical appointments. This will result in considerable savings in time and effort on your part.

Assist with Closing. Your broker can recommend a title company if necessary, explain the closing process and deliver documents. They will coordinate with the title company and attend the closing with you if you so desire.

Follow Up After Closing. A good land broker will assist you beyond the closing. You will probably have questions about vendors, agriculture exemptions and a whole list of other items. Your land broker should provide ongoing advice.

SUMMARY
As you can see from the above discussion, a lot of time and effort is required in the search process. Finding that special country property requires planning and action. Choose the right land broker to represent you on your journey to owning buying your piece of Texas in Houston’s backyard will be a lot easier. Enjoy the trip. It will be fun.

CHECK IN WITH US

Allen Realty Advisors represents buyers and sellers of fine quality rural land near Houston. We specialize in weekend retreats, country estates, farms and ranches, recreational property and investment land. Our market area is generally within 100 miles (two hours) of Houston.