Ok so Zillow just announced a new “Touring agreement” that in their words “puts consumers first”
(Screenshot from their announcement)
The article goes on to say:
" What our touring agreement does
Our touring agreement–which expires after seven days and covers touring activities only – does not require compensation or exclusivity. That’s by design. We believe any negotiation of compensation, and what it will look like for the buyer and agent to work together, should happen after both meet and feel ready. At the time when an additional agreement is signed, the buyer and the agent should be aligned on all terms and expectations, including compensation, with no surprises."
(source: Zillow’s new touring agreement puts consumers first - Zillow Group)
Among other things…
Honestly? I kind of hate it.
Why? Because it panders to the worst kind of client (those not willing to value Realtors® time and experience) and promotes the exact opposite of what every other Realtor® will be saying to their buyers.
Buyers agents will be saying: "We need to have an agreement up front so you understand my fees and that I work exclusively for you. This agreement ensures I get paid for my services but in no way obligates you to pay me if we don’t do a transaction.
Zillow seems to be saying: “Don’t talk comp up front, go for a ride for a week first.”
It’s yet another example of where Zillow is doing the “opposite” of supporting their paying customers (Realtors®) and using the “consumer friendly” label to make it sound like they are doing a good thing.
How is this a good thing?
FYI (for those not familiar with the settlement terms) here is the relevant part related to buyer agreements. Note, such an agreement is compliant since it only says compensation is required to be disclosed “if” compensation is required.
A: to the extent that such a R E A L T O R ® or Participant will receive
compensation from any source, the agreement must specify and conspicuously
disclose the amount or rate of compensation it will receive or how this amount will be determined:
B. the amount of compensation reflected must be objectively ascertainable and may not be open-ended (e.g., “buyer broker compensation shall be whatever amount the seller is offering to the buyer”);
C. such a REALTOR® or Participant may not receive compensation for brokerage services from any source that exceeds the amount or rate agreed to in the
agreement with the buyer;
Here is what I am told (but have not independently verified) is their touring agreement.
What do you think? Love it? Hate it? Meh?