Part 3: Understanding the Requirement for a Written Agreement with Buyers

This is part 3 of a 3-part series of blog posts. In this part, we’re diving into a key change: the requirement for a written agreement with buyers before touring homes.

What’s Changing?

Before you can tour homes with an agent, you’ll now need to sign a written agreement. These agreements have been around, but now they’re mandatory. They clearly lay out not just what your agent will do, but also your responsibilities as a buyer. (yes, you read that right, you also have responsibilites). The agreement also spells out how much your agent will be paid and where that payment comes from. This rule ensures everyone knows what to expect and is committed before any home viewings start.

What This Means If You’re a Buyer

Clarity and Understanding: This agreement will explain what services your agent will provide. We recommend a buyer consultation so you can see the value your agent brings and understand the process. This is your chance to set clear expectations.

Compensation Details: The agreement will detail your agent’s compensation and who’s paying for it. Just because you’re signing doesn’t mean you’re paying your agent directly—commissions are still negotiable. Talk with your agent about how to handle negotiations, who’s offering compensation, and how you’ll approach the process.

Commitment: Signing this agreement means you and your agent are committed to working together to find your home. It also outlines your responsibilities, especially in an exclusive agreement where loyalty is key. It’s about teamwork—working together for the best outcome.

Transparency: Having everything in writing means fewer misunderstandings. You’ll know exactly what’s happening and can feel more confident as you go through the home-buying process.

What This Means If You’re a Seller

Serious Buyers: This new requirement means buyers touring your home are serious and committed. They’ve already established a solid relationship with their agent and are ready to make informed decisions.

Clear Expectations and Efficient Transactions: This rule ensures everyone knows their role, leading to smoother negotiations and a quicker path to closing.

Compensation Agreements: Expect buyer agents to ask about seller-offered compensation before viewing your property. Many buyers budget carefully and may not afford to cover agent commissions. Compensation agreements will help clarify how agents are being paid before a purchase contract is signed.

Final Thoughts: Let’s Bring it Home!

Change can be intimidating, especially with so much misinformation out there. The truth is, there’s a bit more paperwork and a lot more communication required now. Commissions still exist and are negotiable, representation is more intentional, and compensation will be a big part of the conversation. Remember, agents set their prices based on the value they bring. As a consumer, you have the choice to pick the experience you want and what you’re willing to pay for it. Agents will also be selective about who they work with—this is business, just with clearer expectations.

Thanks for following this 3-part series on the latest real estate changes. If you have any questions or need help, don’t hesitate to reach out—and if all else fails, just bribe us with cafecito, or better yet, a Mojito!

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