If you've ever browsed Zillow, Trulia, Realtor.com, or similar real estate websites and clicked "Schedule a Tour," you might be surprised by what happens next.

Contrary to what many buyers expect, you're likely not going to be connected with the seller's agent. Instead, you'll probably be paired with a local buyer's agent - a professional that represents your best interests in the transaction. 

As of August 18, 2024, there's a major change all buyers should be aware of:

Realtors nationwide will be required to have a signed buyer’s agency contract in place before they can tour homes with you privately.

Why Can't You Tour Homes Casually Anymore?

Many buyers are surprised - and sometimes frustrated - that they can no longer tour homes as freely as they could before. This new rule may feel like a barrier, but in reality, it's designed to protect both buyers and agents and to bring more transparency to the buying process.

When you click to view a home online, chances are you're speaking with a buyer's agent, not the seller's. These agents are there to advocate for you, not the seller, and it's important that this relationship is clearly defined - especially before viewing homes privately. 

What is a Buyer's Agency Contract? 

A buyer's agency contract is a formal agreement between you and your real estate agent that defines your working relationship. It outlines:

• The area where the agent will help you search
• The duration of your agreement 
• The scope of services the agent will provide 
• How the agent will be compensated

In Texas, three contracts can be geographically specific. For example, if you're searching for homes in the Austin Metro area, you'll want to work with an agent who knows that market well. If you're looking in Houston, Dallas, or San Antonio, your agent can refer you to trusted colleagues in those cities. You want to work with someone who has the right tools, knowledge, and MLS access for the market you're in - especially if you're an investor.

But Isn't a Buyer's Agent Free?

A common misconception is that using a buyer's agent is free. That's not quite accurate. While buyers typically don't pay the agent directly. the seller often covers the buyer agent's commission as part of the listing agreement. This is how it works:

• When a seller hires a listing agent, they may also decide to offer compensation to a buyer's agent
• That compensation gets negotiated as part of the deal
• This system helps reduce the financial burden on buyers, who are already responsible for down payments and closing costs. 

However, not all sellers offer buyer agent compensation. In those cases, your agent will let you know, and you can still move forward - just with a plan to negotiate. 

What if the Seller Doesn't Offer Compensation? 

Don't panic! Buyer's agents can often negotiate their fees into the offer in many cases. Here's how:

• If a seller isn't offering compensation, your agent can write that into your purchase offer - either as a line item or as part of the closing cost negotiations
• For new builds and most resale homes, sellers already have compensation built in
• If not, your agent will work with you to create an offer that includes it, ensuring you're still protected and represented without unexpected out-of-pocket costs. 

This new rule may feel like a big shift, but it's ultimately a win for buyers. It creates clarity, professionalism, and protection in a complex process—and helps ensure you’re working with someone who is truly in your corner. So, before you schedule your next private home tour, take the time to:

• Interview buyer’s agents
• Discuss your goals and timeline
• Review and sign a buyer’s agency agreement