Do You Know the New Open House Rules?
As of August 17, 2024, some important changes have taken effect in the way buyers and real estate professionals interact when it comes to open houses and home tours. These changes, introduced by the National Association of Realtors (NAR), are designed to increase transparency and make the home-buying process clearer for all parties involved.
In this post, we’ll break down what the new open house rules mean for you, particularly when it comes to written buyer agreements and when they are required.
Do You Need a Written Buyer Agreement for an Open House?
Good news for those who love to casually browse homes! If you’re just attending an open house without the presence of your own real estate agent, you do not need to sign a written buyer agreement. Open houses are designed to allow potential buyers to view homes without the obligation of entering into a formal agreement upfront.
Similarly, agents who are hosting open houses aren’t required to sign written agreements with visitors. These agents are usually there on behalf of the seller or listing broker, so their goal is to market the home and answer any questions you may have about it.
When Will You Need to Sign a Buyer Agreement?
While open houses remain informal, things change when you begin "working with" an agent. NAR's new rules specify that once an agent begins actively helping you—whether by identifying homes for you or setting up tours—you’ll be asked to sign a written buyer agreement. This typically happens before you tour your first home together, but it ensures transparency on both sides regarding the services offered and how the agent will be compensated.
So, what does “working with” an agent actually mean? If an agent is simply answering questions at an open house or showing you homes they’ve listed, you aren’t considered to be "working with" them yet. But if they start tailoring their services to your needs, that’s when the relationship becomes formalized, and an agreement is needed.
What’s Considered a “Tour” of a Home?
Under NAR's guidelines, a “tour” refers to when a buyer, accompanied by their agent, physically enters a home for sale or directs the agent to do so on their behalf (like in a virtual tour). Whether you’re physically present or not, once your agent starts viewing homes for you, a written agreement is required.
Why Are Written Buyer Agreements Important?
These agreements are designed to ensure clarity and transparency between you and your agent. They lay out exactly what services the agent will provide, as well as how they will be compensated. It’s important to remember that these agreements are fully negotiable. You’re in control, and you should only sign an agreement that reflects your understanding and consent to the terms.
Written buyer agreements offer peace of mind, ensuring that both you and your agent are on the same page from the start. It helps prevent any misunderstandings down the road, so you can focus on finding the perfect home.
Stay Informed: Practices May Vary by State
While these open house rules are part of a national effort, keep in mind that practices may vary based on state or local laws. It’s always a good idea to consult your real estate professional or attorney for guidance specific to your location.
For more information on written buyer agreements, check out the NAR’s comprehensive guide here.
Conclusion
These new rules are in place to protect buyers and ensure clarity in the home-buying process. If you're planning to attend an open house soon, you'll be happy to know that it remains a relaxed way to explore homes without needing to sign formal agreements right away. However, if you're ready to work more closely with an agent, written buyer agreements ensure that both parties know exactly what to expect moving forward.
Contact The Agent That Shared This Article With You
For personalized guidance on navigating these new rules, contact the agent who sent you this article. Don’t have an agent? I’d be happy to connect you with a great one—just give me a call at 707-695-6313 or click on my calendar image to schedule a chat.
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