About Touring Agreements

​Non-Exclusive Touring Agreements: Comprehensive Overview

 

Purpose and Flexibility: Non-exclusive touring agreements allow homebuyers to tour properties without committing to a specific agent long-term. This flexibility is particularly useful for those who want to explore options with different agents or are not ready to sign an exclusive buyer representation agreement. The agreement related only to touring homes, for a limited time of 7 days. There is no requirement for broker compensation and, as the name implies, the agreement is non-exclusive.

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Key Features:

1. No Long-Term Commitment: Buyers can work with multiple agents simultaneously, fostering a competitive environment where agents strive to provide better service.

2. Transparency: These agreements ensure that both the agent and the buyer understand the terms of their working relationship, typically limited to a single showing or a few showings without any obligation to continue beyond that.

3. Short-Term Nature: Non-exclusive agreements usually cover a short period or specific showings, allowing buyers to tour homes freely while considering various agents.

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Zillow's Approach:

Zillow introduced a non-exclusive touring agreement to align with industry trends and promote a consumer-first approach. Their model prioritizes consumer choice, enabling buyers to tour homes with Zillow Premier Agents without long-term obligations. Zillow's initiative reflects a broader industry shift toward transparency and flexibility, responding to consumer demand for more control over their homebuying journey.

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Zillow says: "The proposed NAR settlement outlines the requirement that buyers have written agreements with agents before touring.  While this may seem like an extra step, when done right, agreements can provide transparency, promote open conversation, and foster alignment between the two parties.  However, insisting that a buyer sign an exclusive, long-term agreement with an agent, perhaps before even meeting the agent, feels premature. That's why Zillow has created a non-exclusive touring agreement, and they have made it available for use to the entire residential real estate industry. 

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Industry Impact: These agreements represent a shift in the real estate industry, offering buyers greater freedom and reducing the pressure to commit to a single agent early in the process. They also encourage agents to deliver high-quality service to earn a buyer’s long-term business.

 

Agents provide value in the transaction:

Buying a home is complex and often comes with a lot of stress: 

Half of buyers tell us they cried at some point during the process. Without an expert prioritizing their individual needs, buyers can miss out on making a competitive offer, leave money on the table in the negotiation, ignore potential pitfalls or waive important aspects such as inspections – which can end up costing them later. 

Most buyers want and need an expert on their side – we don’t see that changing. This makes finding the right agent that much more important, and it’s why upfront conversations about expectations and compensation are critical. We strongly believe in the value of independent representation: Buyers and sellers deserve to work with an agent who is committed to their best interests and only represents them. 

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For further details, you can visit the full articles: Real Estate in the District and Zillow Group.

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