What Recent Changes Mean for Homebuyers: Buyer Brokerage Agreements

Learn about the essential buyer brokerage agreements in today’s market.

I want to touch on an important topic following the recent National Association of Realtors settlement: buyer brokerage agreements. With some changes coming down the line, it’s crucial to understand what to expect if you’re planning to enter the home market soon as a buyer. Let’s dive into what these agreements entail and how they might affect you.

One of the significant changes is that as licensed agents, we are now required to have you sign either a buyer brokerage agreement or a touring agreement before showing you any properties. This means that anyone with a license to open a lockbox and show you a house will need your signed consent. Here’s a breakdown of what these agreements mean for you:

• Buyer Brokerage Agreement: This is a full commitment where you agree to pay a specified commission to the agent for their services when you purchase a home. It’s like “going steady” – a more formal and long-term engagement.
• Touring/Showing Agreement: This is a more flexible option, often used for one-time showings. For instance, if you want to see a specific property, you’ll sign an agreement for that particular showing, which includes the agreed commission. Zillow is using a similar model with their touring agreement, where online leads automatically sign this form.

As we go through this shift towards a buyer’s market, it’s essential to understand these agreements. They ensure that the agents are compensated for their time and effort, especially in a market where showing houses can be time-consuming. While this may seem like a significant change, it’s a positive step towards transparency and trust in the real estate process.

Real estate is fundamentally based on trust. When you choose someone to help you find a home, you want to be confident that they have your best interests at heart. These agreements reinforce that relationship, ensuring clear communication and understanding from the start.

If you have any questions about these agreements or if another agent has approached you to sign one and you’re unsure, feel free to reach out. I’m here to help clarify and guide you through the process.