Buyer Agreements Explained: What to Know Before You Tour Homes
Daniel ParkNo. 115
Updated
Key takeaways
- Since August 17, 2024, NAR rules have required a written agreement before a REALTOR® tours homes with a buyer.
- The agreement spells out services, the length of the agreement and how your agent will be paid.
- Compensation is negotiable and must be a clear amount or rate, not open-ended.
- Read the term and cancellation terms, and ask questions before you sign.
If you’ve been asked to sign an agreement before seeing a home, you’re not alone. It’s now standard practice, and it protects both you and your agent by setting clear expectations.
What’s in a buyer agreement
- The services your agent will provide.
- How long the agreement lasts.
- Whether it’s exclusive and in what area.
- How much your agent will be paid and who may pay it.
- How either side can end it.
How compensation works now
Your agreement states your agent’s compensation. A seller may offer to pay some or all of it as part of a deal, and you can ask for that in your offer. If the seller doesn’t cover it, the agreement explains what you owe.
| Question to ask | Why it matters |
|---|---|
| Can we start with a short term? | You can try working together before a longer commitment |
| Is it limited to certain areas or property types? | Keeps the agreement focused |
| How do we end it if it isn’t working? | Clear exits build trust |
| How do seller concessions affect what I pay? | Helps you plan your cash |
Daniel’s tip: A good agent will walk you through every line and welcome questions. If an agent rushes you to sign, that’s a signal.
Have questions before you start touring? I’m happy to explain everything.
Frequently asked questions
Do I need an agreement to attend an open house?
Generally, no. You can visit open houses on your own.
What makes a great buyer’s agent?
Filed under Buying a Home
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