All very Interesting.
I would think fewer people would go to Open Houses now. But obviously I could be wrong.
I just know that I wouldn’t be even looking at open houses in our neighborhood if that was the case.
(We usually like to keep an eye on houses that we’d consider for my mom, or youngest son.)
This is part of what I saw from a realtor - there were so many posts, so much content but maybe this helps:
PSA TO ALL HOME BUYERS: On August 17th a Realtor CAN NOT show you a home unless you have signed agreement with them. (Unless you request a showing through the listing agent, in which you will then be unrepresented, which is another conversation.) Usually it’s not a problem and we can zip over, show it to you and be done, however, starting August 17th no Realtor will be able to unlock a door for you without you first signing that agreement. This will be non negotiable for any person with a Realtor designation. The usual form between buyer and Realtor is a Buyers Representation Agreement (however any written agreement to show a property will suffice. It doesn’t have to be a buyers rep. A buyers rep (if that’s what you sign) is basically your contract between you and that Realtor saying you will be using them to buy a home and breaking down the roles, duties and responsibilities owed to you by your agent etc. This is not something we want to do, but are being required to do.
Picking the agent you want to use to help you buy a home is an important decision and not one that should be forced upon you just to see a home. The good news is that we get to decide when it expires, so although you may have to sign one, if you’re not ready yet to fully commit to a Realtor, you can always request an agreement that expires in a day, a week, a month, etc… lastly, 
please don’t yell at your local realtors if they want you to sign something before showing you a home. We don’t have a choice.
And regarding open houses:
“This is officially a state law. There is no way to avoid it. You will not be able to see any property without having something contractual signed.
If you attend an open house you will still be required to sign a contract. It can be for one day, it can be for a single property, but it legally has to be signed no matter what.
This is the new way of the industry. “
Now maybe if you have already signed with a realtor and you are going to another open house on your own you may not have to sign with the host of the open house.
Just trying to provide some context, but also I’m NOT a realtor and just reporting what some realtors who are successful in the area have said!
I think this isn’t sustainable. If most people looking refuse to sign, which I suspect will the case, then the agents will have no one to show the property to. The market we are looking at is already hurting. Putting new requirements on buyers isn’t going to help.
We haven’t signed with any agent yet. We aren’t sure if we will buy this year, or wait another year.
I hadn’t read this until now. We have an agent, haven’t signed anything with her, went to see an open house today, and no one mentioned anything about signing anything. Hmmm.
So does this vary by state? All states don’t have the same real estate laws. Do you mind sharing what state you are in?
I’m with you all who say I will never sign anything to view a property at an open house. Full stop. It’s not like you get the agents undivided attention at those. Around here for a while, multiple possible buyers would be at an open house at the same time.
Maybe this is how they are going to divert folks to online virtual house tours. Really, I would just do that and call the listing agent.
What about FSBO?
For me, it would depend on the terms. If it is as restrictive as a seller’s agreement including fees, I’d be apprehensive. In the seller’s agreement I had to sign, it spelled out the commission and also that I am obligated to pay the agent for a year if I sell the house within a year with or without the agent’s help. No way I’d sign that with buyers agent.
Ohio. But I thought that it was beyond an Ohio law. In Ohio it went into effect August 1 instead of 17th.
I’m having trouble with the concept that there’s a law that says buyers must sign a contract to see an open house. I can’t imagine a state legislature passing a law like that. I can understand why realtors would want that but that’s just a business practice of their company or maybe their professional organization.
The NAR (National Association of Realtors who entered into the settlement) explicitly say in the FAQ on their website that an unrepresented buyer can go to an open house offered by the seller’s agent without an agreement. It seems like sellers’ agents are trying to also become the buyer’s agent for anyone entering an open house but there is nothing in the agreement that requires all buyers to have an agent. Unrepresented buyers are allowed.
[65. If an MLS Participant hosts an open house or provides access to a property, on behalf of the seller only, to an unrepresented buyer, will they be required to enter into a written agreement with those buyers touring the home?
I agree. That sounds like a scammy interpretation being handed down, to force buyers to sign a contract with the listing agent. I think I would sign it with a scribble with my first name starting with an F, and my last name stating with a Y. The listing agent would never see you again, even if you buy the house. I’d bet those “one day contracts” also say in the fine print that if you purchase that house within so many months of seeing it, you have to use the agent as your broker, or pay them a commission.
And the agents have the cover of,”It’s state law, I don’t like it either, it’s required.” Right……
Next week I’ll go to an open house and see
How about you print out what was posted a few posts up, with the answer from the NAR saying that you don’t have to be represented, and see what the open house agent says?
It will be interesting to see how this new approach settles out. I’m assuming it will be different in each locale based on the market conditions.
On the open house issue- in my cases with open houses a lot of the traffic is neighbors. They have no interest in buying but are curious. One high end agent in my area said she expects the neighborhood to come through. She said in many instances they have told a friend who is looking and she makes her sale.
I have another friend who is an agent who in some cases have clients who look for years without buying. In those cases she makes no money.
Broker who helped me purchase our condo in Florida sent an email with this summary regarding buyers and sellers.
This bit seems like it is more of a bribe. You’re not paying the buyer’s agent’s fee, you’re just greasing the palm of the buyer’s agent to show/promote your property. And it can’t be included in the MLS, where the buyer might actually see the information to be aware of it, or that their agent will get a bigger financial reward if they end up selecting your house. Eh, not a fan of this part.
Many say open houses are more for realtors to recruit clients than sell homes although I know sometimes homes sell this way.
It is good marketing though - you talk to a realtor, you like them - maybe one day you’ll use them.
I don’t know about in TN but in CA it was all the neighbors checking each other’s homes
From what I can find out, it will still be possible to be a Lookie-Lou in California, as I’ve heard it called. I get the impression that you could walk in to an Open House, refuse to sign anything, and just get handed a listing sheet and then ignored. Or sign the “just visiting” California sign in sheet and get a little more attention.
When I sign in, I just hand them my realtor’s card or yesterday, I wrote my name and my realtor’s name & company. No other contact info provided.
Now that everything is online via Zillow, Redfin, etc. I don’t really see the value of a buyer’s agent when starting the looking process. I can go to open houses myself or call the listing agent (unless I’m missing something). No one can force me to give my identifying info (I’d think?) at the open house…
