Do Home Seekers Need to Sign a Contract to Tour Homes? By Realtor.com

It’s human nature for folks to want to sneak a peek at their neighbor’s open house—even if they’re not truly home seekers looking to buy. Trust us, stopping by to grab a cookie and gawk is something we’ve all done (or at least thought about doing).

Casual lookers can often wander into open houses without so much as leaving their name, but if you’re actually serious about buying a home, do you have to sign a contract with a buyer’s agent before making the rounds to visit homes for sale?

You certainly don’t need to be with an agent to drop in on an open house—and visiting a few can help you refine what you’re looking for, which in turn helps your future agent help you.

But smart buyers will reach out to a real estate agent to help with the process, says Steve Ujvagi, owner of Atlanta-based Keller Williams Results Team.

“Assuming you, as a buyer, have found an agent who is kind, sane, hardworking, and knows the local market. It would be in your best interest to commit to that particular agent,” he says.

Do you need to sign a contract?

Once you decide on a buyer’s agent, you will have to sign a contract before touring a home with that buyer’s agent in person or virtually, outlining the agent’s services and compensation.

However, you do not need a written agreement if you are simply interviewing a potential buyer’s agent or talking to a listing agent who is holding an open house.

In general, the contract you do sign should outline the negotiated terms, detailing the services provided and their cost.

According to the recent NAR settlement, the contract should also include these things before you sign it.

• 1. A specific and conspicuous disclosure of the amount or rate of compensation the real estate agent will receive or how this amount will be determined.
• 2. Compensation that is objective (e.g., $0, X flat fee, X percent, X hourly rate)—and not open-ended (e.g., cannot be “buyer broker compensation shall be whatever the amount the seller is offering to the buyer”).
• 3. A term that prohibits the agent from receiving compensation for brokerage services from any source that exceeds the amount or rate agreed to in the agreement with the buyer.

“A contract ensures that the buyer and their agent both understand and agree on how the agent will be paid for their efforts,” Ujvagi explains.

And in return for that loyalty, the agent should do all they can for the client, making the contract a win-win for both parties.

But if not, you, as the buyer, can be very clear with an upfront statement such as “I will let you know if I choose you as my buyer rep; I am currently interviewing other agents, too.”

"Call Eli Torres at (832) 430-2107, for your home buying and selling needs."

Source: www.realtor.com