Consumer Wisdom: Open Houses & Written Agreements

Fall is rolling in, days are becoming shorter and cooler.....You are in the market to find your cozy adobe before the brink of the winter cold days....you surf Zillow and found the perfect spec that has an Open House falling upon the current week, you've never been .....

The desired question to be answered is:  What if you are attending an Open House? Here's what you should know:

Scenerio:  I am attending an open house without an agent.  Do I need a written buyer agreement in order to tour the house? 

No,  if you are simply visiting an open houseon your own or asking a real estate professoonal about their services, you do not need to sign a written buyer agreement.

Scenerio: Is an agent who is hosting an open house required to enter into a written agreements with the potential buyers who attend the open house?

No, in this case, since the agent is only there at the direction of the listing broker or seller, the agent is not required to have a written agreement with the buyers touring the home.

When will I be asked to sign an agreement with an agent?

After you begin "working with" an agent and at any point before you tour first house together.

What does "working with" an agent mean?

A buyer is "working with" an agent as soon as the agent begins to provide services, such as identifying potential properties and arranging tours.  Agents who are simply marketing their services or speaking to a buyer-at an open house or by providing a buyer access to a house they have listed - are not considered to be working with the buyer.

What does it mean to "tour" a home?

Under the terms of the settlement, a "tour"is when a buyer who is working with an agent enters a home that is for sale or directd that agent to enter the home on their behalf.  This includes when the buyer's agent provides a live, virtual tour to a buyer not physically present.

What is the purpose of written buyer agreetments?

Clarity and transparency.  Written buyer agreements lay out the services your real estate professional will provide and what they will be paid.  Buyers should not sign anything that includes terms they do not agree with or do not understand.  You are in the driver's seat with these agreements, which are fully negotiable.