Understanding Written Buyer Agreements

When buying a home, a written buyer agreement ensures clarity and confidence with your realtor. According to the National Association of Realtors, a written buyer agreement is an agreement between you and your real estate professional outlining the services your real estate professional will provide you, and what they will be paid for those services.

What Homebuyers Need to Know

You will be asked to enter into a written buyer agreement with your real estate professional before “touring” a home with them, either in-person or virtually. If you are simply visiting an open house on your own or asking a real estate professional about their services, you do not need to sign a written buyer agreement.

Required nationwide for many agents since August 17, 2024, these agreements outline:

• The services your agent will provide

• How your agent will be compensated

• Clear expectations to avoid confusion

Some Common Misconceptions:

“If I sign, I’m locked in forever.”

Not so. Agreements are negotiable—you can discuss length, services, and compensation. They help protect your interests and make the homebuying process smoother. Open houses or casual questions don’t require one, but signing before touring homes sets everyone on the same page. You and your realtor can mutually agree to adjust your agreement.

“It means I have to buy a house.”

Nope. You will definitely not be required to buy anything. The buyer agreement simply outlines the agent's duties and responsibilities, the duration of the contract, and how the agent will be compensated. It’s about transparency and protecting the parties involved.

“Signing this will cost me money.”

The agreement itself doesn’t cost anything. It will likely outline potential commission obligations.

Key Takeaways:

• Know exactly what services your agent will provide

• Seller compensation may cover your costs

• Agreements can be modified or ended by mutual consent

• Protects both you and your realtor with clarity and trust