Why Virginia Homebuyers Sign a Buyer Agreement Before Touring Homes
If you're planning to buy a home in Virginia, you may be surprised when your real estate agent asks you to sign a written buyer agreement before touring properties.
If you've purchased a home before, this may feel different from your last experience. But don't worry. A buyer agreement isn't something to be afraid of. In fact, when it's explained properly, it can give you a much clearer understanding of your relationship with your real estate agent, the services you'll receive, and how your agent will be compensated.
Here's what Virginia buyers should know.
Why Do I Need a Buyer Agreement to Tour a Home?
Real estate industry practices changed in August 2024 following the National Association of REALTORS® settlement. Under NAR's practice changes, MLS participants working with buyers are generally required to enter into a written agreement with a buyer before touring a home.
This is not a new federal law. Rather, it is an industry practice requirement that applies to real estate professionals participating in covered MLSs.
Virginia also has its own laws and regulations governing brokerage relationships, so your agent should explain the specific agreement you're being asked to sign and what it means for you.
What Is a Buyer Agreement?
A buyer agreement establishes the relationship between you and the real estate brokerage assisting you with your home search.
Depending on the agreement, it may address:
The services your agent and brokerage will provide
The geographic area or properties covered
How long the agreement lasts
Whether the relationship is exclusive or non-exclusive
Your responsibilities as the buyer
How your agent's compensation will be determined
How the agreement may be terminated
Before signing, you should understand each of these terms and ask questions about anything that isn't clear.
Does Signing an Agreement Mean I'm Stuck With an Agent?
Not necessarily.
Buyer agreements can contain different terms, including different time periods, geographic areas, property types, and termination provisions.
This is one reason I believe buyers should have a real conversation with their agent before signing anything.
I want my clients to understand exactly what they're agreeing to and what they can expect from me in return.
Buying a home is too important for either side to enter the relationship with unclear expectations.
Does the Buyer Have to Pay Their Agent?
This is one of the biggest questions buyers have.
Buyer-agent compensation is negotiable and should be discussed with your agent before you begin working together.
Depending on the transaction, a seller may agree to pay some or all of a buyer broker's compensation, a buyer may be responsible for some or all of it, or the terms may be negotiated as part of the purchase offer.
There is no one compensation structure that applies to every transaction.
That's why I discuss compensation with my buyers upfront. Before we start looking at homes, I want you to understand what you've agreed to and how different scenarios could affect you financially.
What Should Your Buyer's Agent Actually Do for You?
This is the part I think gets lost in conversations about buyer agreements.
The document isn't the relationship.
Your agent is.
A good buyer's agent should be doing much more than unlocking doors.
When I represent a buyer, my role can include helping identify properties, researching homes and locations, coordinating showings, analyzing comparable sales, helping develop an offer strategy, explaining contract terms and contingencies, coordinating inspections and other due diligence, communicating with the lender and closing professionals, helping navigate negotiations, monitoring deadlines, and keeping the transaction moving toward closing.
And in a market like Lexington and Rockbridge County, there can be additional considerations.
Depending on the property, we may be looking at wells, septic systems, acreage, surveys, private roads, flood zones, older homes, historic properties, internet availability, property boundaries, zoning questions, or other issues that aren't always obvious from an online listing.
My job isn't simply to help you find a house you like.
It's to help you ask better questions about it.
What If I'm Moving to Lexington From Out of State?
This is where having a local buyer's agent can become especially valuable.
Many of my clients are relocating to Lexington, Rockbridge County, Buena Vista, or the surrounding Shenandoah Valley and can't be here for every showing.
That may mean detailed video walkthroughs, researching properties before you make a trip to Virginia, helping you understand the differences between locations, coordinating inspections when you're out of state, and identifying potential concerns that deserve a closer look.
When inventory is limited, I can also use my local network to make inquiries and keep an eye out for potential opportunities that may fit what you're looking for.
Questions to Ask Before Signing a Buyer Agreement
Before you sign, ask your agent:
What services will you provide?
How long does the agreement last?
Is the agreement exclusive?
What geographic area or properties does it cover?
How are you compensated?
Could I be responsible for any portion of your compensation?
What happens if a seller is unwilling to offer buyer-broker compensation?
How can the agreement be terminated?
What happens if I find a property myself?
A good agent should be comfortable answering every one of those questions.
The Bottom Line
A buyer agreement shouldn't make buying a home feel more complicated. When handled correctly, it should make your relationship with your agent more transparent.
You should know who represents you, what that person is going to do for you, how they will be compensated, and what you're agreeing to before you begin touring homes.
If you're considering buying a home in Lexington, Buena Vista, Rockbridge County, or the surrounding Shenandoah Valley, I'm always happy to talk through the process before you're ready to start touring.
No pressure and no confusing real estate jargon. Just a conversation about what you're looking for, how the process works, and what you should know before you get started.
This article is intended for general informational purposes and is not legal or financial advice. Real estate laws, regulations, MLS rules, contracts, and individual circumstances can vary. Your real estate professional, attorney, lender, or other appropriate professional can advise you regarding your specific situation.
