Why Do I Have to Sign a Buyer's Agency Agreement to See a House?

Have you requested a showing through Redfin, Zillow, or another local real estate website (like us) and the showing agent arrived and asked you to sign a Buyer Brokerage Services Agreement, aka ... a contract, before even showing the home? If so, you're not alone.

Also, you might have been asking yourself "Why do I have to sign a buyer's agency agreement just to see a house?" or "I don't know this agent and I'm not signing anything with them". Both are fair.

You may, or may not have, heard of the changes affecting the real estate industry that went into effect at the first of January 1, 2024. In short, if a real estate broker is going to be providing any buyer related real estate services then that agent and buyer have to have a buyer's agency agreement in place per Washington State law.

So, what is a Buyer's Agency Agreement?

The accurate term is a Buyer Brokerage Services Agreement but called a buyer's agency agreement for short and it's an agreement between a real estate broker (buyer's broker) and a homebuyer. The agreement details the term, agency relationship, compensation, seller compensation offer, compensation terms, and showings.

So let us cover the agreement's highlights.

Term: The term is the duration of the agreement between buyer and buyer's broker. The default time-period is 60 days yet the term can be hours, days, weeks, months, or years. It is what ever duration the buyer and buyer broker decide.

Exclusive vs Non-Exclusive: Mentioned on a recent YouTube short, Exclusive means buyer and buyer broker work together for the term duration. Non-exclusive means the buyer can work with any broker, at any time, and isn't bound to one broker.

Compensation: Is how much the buyers broker will be paid for services rendered. Also, will that compensation be paid as offered by the seller, by the buyer, a combination of the two, or other.

The Buyer's Broker Services Agreement continues with disclosures about inspections, fair housing, attorney's fees and warranties.

So, why are Buyer Brokerage Services Agreements needed?

According to Washington State, the Northwest Multiple Listing Service (NWMLS), and the Washington State Association of REALTORS®, the Buyer's Brokerage Service Agreement is intended to create transparency for buyers, disclose how their agent receives compensation from services provided, and allows a buyer to participate in compensation discussion.

There are many opinions circulating within the industry as well as consumers and I'm interested to hear from you. Below are some questions that can be answered in the comments.

• What are your thoughts on a buyer's brokerage services agreement?
• Will you sign up just to have an agent open a door?
• Are agents only good for door opening?
• Will you be interviewing agents and comparing their services?
• Do you want to represent yourself?
• Are you familiar enough with the purchasing process to represent yourself?
• Do agents make to much money?
• Do you think most, or all agents, don't do anything?
• Do you think you should get a a kick back from your agent?
• Do you know what services agents provide?

I look forward to hearing from you.