Beginning August 17, 2024, an MLS Participant “working with” a buyer will be required to enter into a written agreement with the buyer before touring a home, including in-person and live virtual tours.
Real estate agents can show houses to home buyers without having a written agreement with them, but Realtors® can not because they belong to the National Association of Realtors. The organization made the new rule as part of a settlement from a lawsuit.
I have always been a fan of having a contract to represent potential home buyers before showing them houses because I need to know that if they buy a house, I will get paid. Yet, I am not a fan of the new rule especially as it applies to my own listings.
I used to be able to show people my own listings without any kind of an agreement. Kind of like how people can come into an open house without having a signed agreement with the hosting agent.
The new rule is awkward for potential home buyers who are not ready to commit to an agent, but we have a workaround for that. Buyers can sign a showing agreement. The agreement could be one house or for one day or for any period of time that makes sense to both the buyer and the agent.
The new rule is enforced by the NorthstarMLS. I have been following the rules but I think they are hard to enforce.
If you plan on buying a house and would like to tour a home that is listed for sale by a Realtor, you may need to sign an agreement to tour that house. Read the agreement before signing it and remember that commissions are always negotiable. Home sellers will often pay the buyer’s agent but that payment needs to be spelled out in the purchase agreement.
If you plan on buying a home this year, start by finding a Realtor®.
