Gone are the days when prospective home buyers went under contract after shopping for a house. Want to check out that new listing down the street? Sign your ‘X’ on the line.
As of yesterday, Arizona home buyers need to sign a contract with an agent before touring a home, according to the National Association of Realtors.
The contract details what services will be provided for a live or virtual home tour, compensation for the real estate agent and how long a buyer is tied to that agent for that home. Parts of the contract are negotiable, including agent compensation.
The new rules will not affect open house tours or basic inquiries for realtors.
The new requirement is part of a March 15 settlement between NAR and the U.S. Department of Justice in response to lawsuits over broker commissions. Arizona realtors adopted the new mandate ule Thursday, but it doesn’t go into effect nationwide until Aug. 17.
Arizona Department of Real Estate Deputy Commissioner Jim Knupp admitted home buyers could “be taken off guard” before checking out a new home.
“They shouldn’t be scared but they need to know what the contract says,” he told KOLD. “These contracts are binding. These are contracts with private individuals, and they can be held to the terms of the contract.”
While it’s a method that has long worked well in commercial real estate, realtor and Kelly Anderson said it could be several years before the effect on the residential market is apparent.
“In the very, very short term, this is going to have an impact on the market,” Anderson speculated. “In the one to three-year short term, I don’t think this is going to have an impact on the market.”
Why?
“I think people are going to become accustomed and educated,” Anderson said. “And I think real estate agents are going to become smarter about how they speak with their clients and possibly more transparent, which is the whole intention.”
Either way, Anderson said, “the most important thing is to go get educated, whether you are a real estate professional or a consumer.”
This post was originally posted on InMaricopa.com
