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What’s On My Mind This Week: Consumers Are Not Getting The Full Truth When It Comes To New Real Estate Rules.
In my latest Tracy Talks Real video, I started a new series called Buyer Broker Agreements - Navigate Them Like A Boss, and I launched with a look at the three scenarios when you don’t have to sign an agreement to tour a home.
Spoiler alert! #3 is at open houses. Keep reading for the full discussion. 🏡💪
The Dirty Truth About Buyer Broker Agreements
Buyer Broker Agreements aka Buyer Agency Agreements aka Buyer Representation Agreements aka Buyer Contracts aka Touring Agreements were front and center in the settlement of last year’s commission reform class action lawsuits, suddenly thrusting a requirement on nearly all buyers to sign such an agreement before touring a property, even virtually.
A lot of agents either don’t understand these agreements or they are seizing the moment to take advantage of consumers who definitely aren’t familiar with the agreements. Whatever the case, agents are erroneously insisting on signed agreements in scenarios where they are not required, thereby forcing consumers into a representation agreement that isn’t in their best interests.
What Are Buyer Broker Agreements?
Buyer Broker Agreements are an agreement between you and your real estate professional outlining the services your real estate professional will provide you as a homebuyer, and what the agent will be paid for those services.
Hint, hint! “Paid for those services” is the key to two of our exceptions, but more on that in a minute.
Before the settlement of the lawsuit last year, nobody talked much about these agreements in most parts of the country. A few states were using the agreements and others had them available without much traction.
After the settlement, buyers are now required to sign agreements upfront that specify compensation in precise terms (no ranges, no “whatever the seller will pay”).
I believe the widespread requirement of these agreements early in the process is a good thing for consumers, but I also recognize that these agreements are a huge cultural shift in residential real estate, which led me to develop my Buyer Agent Game Plan™ and Agency Agreement Decoder™ courses, to help consumers bridge the knowledge gap to use these new agreements in ways that advance their best interests.
But are these agreements required in every instance? Let’s look at three exceptions.
Who Do The New Rules Apply To?
First, any terms coming out of the settlement of any lawsuit apply only to the parties to that lawsuit. In this case, NAR members and relevant MLS’s.
This means that non-NAR members are free to show listings not on the MLS without an agreement.
But don’t get too excited about this exception as a consumer because at the time of publication of this article most agents are NAR members.
Additionally, most properties that non-represented homebuyers will want to tour will be on the MLS.
How do I know that? Because without an agent, I know you'll be learning about new listings via Zillow, Redfin or an agent's website. Those listings are nearly without exception from the MLS due to technology reasons. Ask me offline how I know this, but my knowledge comes from co-founding one of the first companies to bring MLS listings to the web 25 years ago.
So assuming your target listings are on the MLS, the next possible exceptions to signing are listing agent-direct showings and open houses.
Going Directly To The Listing Agent For A Showing
Why is going direct an exception to the Buyer Broker Agreement requirement? Because listing agents are acting on the seller's behalf and showing the property with only the seller's interests guiding them.
The only agent you have to sign an agreement with is an agent who expects to act as your agent and get paid for it. This is not the listing agent, unless you agree to be represented by the listing agent, thereby creating a dual agency scenario, which in my humble opinion is never, never, ever a winning strategy for a homebuyer.
Dual agency by definition is when an agent or a team or even a whole brokerage under the same broker represent both the buyer and seller. This is a conflict of interest and is actually illegal in eight states! It's only legal in the rest of the states because agents have such a strong lobby.
Dual agency has bothered me since I joined this industry 25 years ago. I don't care how pure the motivations are on the agent side, there is simply no way a conflicted agent can represent both sides effectively.
If you were sued, would you hire the other guy's attorney to represent you? It's the same thing in real estate. Both parties have competing interests. You want the lowest price and the seller wants the highest. A dual agent becomes more of an arbiter than a zealous advocate.
Even different agents on the same team may be exchanging confidential information in the background. You just don't know. No, dual agency should be avoided by homebuyers like the plague.
A listing agent may ask you to sign a disclosure form explicitly explaining that they don't represent you, and this form does not obligate you to work with the agent. This is a simple disclosure explaining that they represent the seller and not you.
And because these agents don’t represent you, they should not share juicy details about the property, and they don’t owe you any duty of confidentiality, so proceed accordingly. Tour the property and if you want to pursue buying it, find your own independent zealous advocate to negotiate your best deal.
The Open House Exception
Open houses are a seller-sponsored event. For all the same reasons described in the listing agent exception section above, you should not be asked to sign a representation agreement to tour an open listing.
And read the small print on any otherwise benign-looking sign-in form, as well. Agents hosting an open house are working for the seller and should have no reason to expect you to pay them. Push back if they ask you to sign anything to the contrary.
And just as with the listing agent, do not expect confidentiality with information you disclose about yourself and don’t expect any information about the property beyond statistics. Tour the property, and if you want to pursue it, hire your own advocate.
So I Probably Have To Sign?
To recap the exceptions, no representation agreement is needed to tour off-MLS properties listed by non-NAR members and for touring properties with the seller's agent or that agent's representative.
Assuming you want to tour MLS listings and listing agent-direct or open houses aren’t viable options, you will need a Buyer Broker Agreement to tour listings, but I have good news for you!
These agreements are 100% negotiable and once you understand the agreements, you can negotiate a version that works for you. I’m going to talking about multiple versions of these agreements in coming weeks as part of my video series. Stay tuned or hop over and enroll in Agency Agreement Decoder™ and start learning right away with your self-paced on demand video lessons.
Final Thoughts
Buyer Broker Agreements might feel scary or limiting, but I’ve got all the insider tips to help you understand these rather simple agreements and strategies to make them work for you. Subscribe to this newsletter and my youtube channel and follow along as I roll out the good stuff.
Related to this article:
Introducing Buyer Agent Game Plan™
Buyer Agent Game Plan™ was born in very early 2025 and has since grown into the Home Buyer Success Series™, along with Home Buyer Prep Plan™, Agency Agreement Decoder™ and Agent Accountability Playbook™.
The entire series is designed for today's homebuyers to help them optimize for their highest and best homebuying outcome, that is, buying homes for the price and terms they want, guided by skilled negotiators.
I created Buyer Agent Game Plan™ because I 100% believe that your agent choice can absolutely make or break the success of your purchase. There are no returns on that home once you close. You will want to get it right.
Smart buyers don't wing it. They interview. They ask hard questions. They evaluate unemotionally. They know the agent they hire can either protect their investment ... or walk them into a trap.
In Buyer Agent Game Plan™, you'll learn
what type of agent makes the most sense for your specific situation
who pays for your agent and a strategy for shifting the out of pocket cost to the seller
the roles Zillow and discounted brokers can play in home buying
why having your personal ducks in a row before picking an agent matters
what questions to ask to uncover undesirable agent attributes, including commission bias
a ridiculously simple strategy for conducting multiple interviews
and a framework for comparing multiple agent candidates "apples to apples"
I also offer a corollary service called Find Me Agents to provide qualified agents in your local area for you to interview.
Buyer Agent Game Plan™ helps you buy your next home with confidence, knowing you have the right agent in your corner giving you smart advice on a topic you will seldom encounter in your lifetime - the purchase of a huge asset.
If you're getting ready to buy, and you want your agent decision to work for you, not against you, grab my Buyer Agent Game Plan™. It's the step-by-step blueprint I created so buyers like you don't have to guess, gamble or make big mistakes.
Smart buyers don't wait until it's too late -- they hire with a game plan because the best way to avoid buyer remorse is to spot the traps before you step in one.
Fast Start Guide: Getting Started Under The New Homebuying Rules
I’ve been watching the commission reform lawsuits closely since the beginning. One year later, I’ve summarized everything you need to know to get started if you’re buying a home in the post-lawsuit era. Find this fast start guide in my Learning Center.
I’m also busy putting the final touches on my forthcoming book - The Secret Handshake (Play The Home Buyer & Home Seller Game Smarter). This has been an exciting project.
I find myself increasingly obsessed with helping consumers understand residential real estate on a deeper level and how to make more lucrative choices, including how to find, hire and vet agents. Join me on this journey? Hop over to the Learning Center and click the follow button under my bio. You’ll be notified when new offerings are added to the Center.
Do You Need Help Finding Agents?
Whether you are in my backyard here in Los Angeles or someplace farther away, I am available to help you find agents to interview. There is a nominal fee for this service, but I will find and vet three agents for you to interview in your local market, as well as provide a list of interview questions and my proprietary strategy for interviewing and comparing multiple agents with ease.
Complimentary Home Buyer Resources
Please enjoy these resources:
Ignore These 5 Things On A Home Tour - Don't let cosmetic bells and whistles distract you from things you cannot change about a property.
Buying In A Low-Inventory Market - Buyers have to be very strategic and ready to go when competing with other buyers in a seller's market. Don't miss these tips!
Don't Fall Prey To Wire Fraud - wire fraud is real. Be ready to recognize it and know your best practices to avoid it.
Follow Local Trends - Long time readers know I like me some trends! 🤓 This resource explains how market trends impact your home buying and home selling choices and strategies.
Benefits Of A Buyer CMA - Wondering how much to offer when buying a home or how much to list for when selling a home? Learn about Comparative Market Analyses (“CMAs”). They aren't just for sellers!
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Alternatively, private 1:1 conversations can be scheduled here.
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Content Authenticity Statement
99.9% of this week’s newsletter was generated by me, Tracy Thrower Conyers. AI created my nifty rule book image. 😊
Legal Stuff
You are not my client unless we have a written agreement in place. This newsletter is offered for informational and/or entertainment purposes only. Neither I nor Silicon Beach Properties nor eXp Realty, Inc. is responsible for the consequences of how you implement the content of this publication and nothing herein is intended to address your specific situation. Additionally, the information contained herein may be outdated (legally and/or factually) by the time you consume this content, so consult a professional licensed in your jurisdiction for advice.
My CalDRE license number is 01712960. Silicon Beach Properties is my real estate DBA brokered by eXp Realty of California, as am I.
Advertisements in this newsletter have paid to be promoted and, as a result, I receive direct financial compensation for promoting them. Sometimes I promote people, places and things strictly to show support without compensation. Ask me if you have questions.
My real estate company, Silicon Beach Properties, and I maintain partnerships and affiliate relationships with other companies. Look for asterisks** to signify such a relationship. Assume we are compensated, but that won’t always be the case.
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Until Next Week…
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