Innovation is in our DNA at Inman — that’s why we’re excited about August’s Technology and Innovation Month. We’ll kick it off by celebrating the companies and individuals pushing the industry forward with an expanded slate of Inman Innovator Awards at Inman Connect Las Vegas. Then, we’ll continue to celebrate the brightest minds in real estate all month long.
Four months after rolling out an industry-first short-term non-exclusive touring agreement, portal behemoth Zillow has released 24 state-specific versions of the agreement as the industry nears the Aug. 17 deadline for several landmark procedural changes, including a requirement that buyers’ brokers sign representation agreements with buyers before taking them on a home tour.
The state-specific agreements cover 80 percent of Premier Agent Real-Time Touring connections; however, Premier Agent partners can opt out of using them. For those who opt-in, the agreement becomes an automated part of the touring flow. When a homebuyer requests a tour with a Premier Agent, they’ll get a notification about reviewing and signing the seven-day tour agreement online or in person before the tour begins.
Alongside the touring agreement, homebuyers will receive a primer on what the agreement entails, why it’s required and their choices after the tour concludes. If a homebuyer decides to work with an agent after the short-term contract expires, they’ll be prompted to sign a longer-term agreement that outlines the services they’ll provide and how the agent will be compensated.
“We believe for most buyers, working with an agent in all stages of the process, is valuable,” a Zillow spokesperson told Inman in an emailed statement. “We’ve designed [the touring agreement] to be an easy, transparent experience for both agents and consumers to comply with new regulations, while also ensuring shoppers go into a home tour understanding exactly what the agent will do, but without being locked into working with an agent exclusively prior to even meeting them in person.”
They added, “This is an opportunity for the agent to educate buyers about this new standard and the need for another agreement, as well as showcase their own services and value in navigating a home buying process.”
Agents who aren’t Premier Agent partners can download state-specific versions of the touring agreement online, alongside the original version released in April. Agents are encouraged to speak to their state regulator or brokerage if they have any questions about using the agreement.
Since debuting the tour agreement in April, Zillow said the tour agreement has yielded positive results. Homebuyers who signed a tour agreement went on more tours than homebuyers who didn’t and were more likely to sign a long-term agreement with a Premier Agent.
Zillow Industry Development Officer Errol Samuelson said the rollout of state-specific touring agreements aligns with the portal’s dedication to facilitating transparent transaction for homebuyers and buyers’ agents as commission policies change.
“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,” he said in a blog post. “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.”
“The requirement to have an agreement in place prior to touring a home will be new for most consumers and agents. As we move forward, it’s important to remain focused on who the real estate industry serves: buyers and sellers,” he added. “We’ve long championed a more fair and transparent marketplace. In this moment of evolution, we’re extending an invitation: Join us in putting consumers first.”
The updated agreements are available in these states: Arizona, California, Florida, Georgia, Illinois, Massachusetts, Maryland, Minnesota, Missouri, North Carolina, New Jersey, New York, Nevada, Ohio, Oklahoma, Oregon, Pennsylvania, South Carolina, Tennessee, Texas, Utah, Virginia, Washington and Wisconsin.
