Real estate marketplace Zillow on Tuesday announced it is rolling out a short-term "non-exclusive" agreement that home buyers can use on tours with their agents.
In a blog post, Zillow Industry Development Officer Errol Samuelson explained that the new agreement between buyers and their agents will last seven days and will only cover home touring activities. However, he emphasized that the contract does not "require compensation or exclusivity," adding that these terms were intentionally kept out of the agreement.
"Our touring agreement - which expires after seven days and covers touring activities only - does not require compensation or exclusivity. That's by design. We believe any negotiation of compensation, and what it will look like for the buyer and agent to work together, should happen after both meet and feel ready," Samuelson said. "At the time when an additional agreement is signed, the buyer and the agent should be aligned on all terms and expectations, including compensation, with no surprises."
NAR's Settlement Agreement
Zillow's new touring agreement is a direct response to the proposed terms in a settlement agreement that the National Association of Realtors reached in March. Under the settlement terms, real estate agents would be required to have written agreements with a client to work with them as the buyers agent. The agreements would have to be signed before the client is taken on home tours. However, in some states, the agreement would be required earlier in the transaction.
At another point in the blog post, Samuelson argued that having potential buyers sign long-term, exclusive agreements with agents before they even get to meet other professionals "feels premature."
"Buyer agreements typically outline exactly what an agent will do for a client. However, requiring a long-term exclusive agreement with a single professional, before the home buyer has an opportunity to meet with multiple agents or sufficient time to decide to work with this agent, negatively impacts the consumer experience. To put it simply, most people want to date before becoming exclusive," he added.
Samuelson is now calling on the rest of the real estate industry to follow Zillow's lead and offer a "non-exclusive, limited duration agreement" for buyers for initial home tours. Zillow has also made its new agreement available for free use.
