Zillow offering 7-day ‘touring agreement’ for agents.

ZIllow is getting creative with this buyer-agent tour agreement. The NAR settlement does not address home search portals, but Zillow wants to make it easier for buyers to try out an agent in a way that aligns with new rules. ZIllow is getting creative with this buyer-agent tour agreement.
Zillow isn't obligated to provide consumer-facing agreements following the proposed NAR settlement; however, we see this as a chance to offer tools that help the industry meet these requirements with the consumer's interests in mind. We understand that the specifics of these agreements will differ from state to state, but we encourage the industry to adopt a non-exclusive, short-term agreement for initial tours conducted by an agent with a potential buyer.
The Importance of Buyer Agreements
Buyer agreements are essential because they clearly define the services an agent will provide to a client. Imposing a long-term exclusive agreement with one professional from the outset can detract from the consumer’s experience, as it limits their ability to meet and evaluate multiple agents or to take sufficient time before deciding to commit to one. In simpler terms, most people prefer to explore their options before deciding to commit exclusively.
Links I Used
Agreement: bit.ly/3UD1Jhl
Zillow Blog: www.zillowgroup.com/news/zill...
NAR Settlement FAQ: www.nar.realtor/the-facts/nar...
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[@Starfish2145]

Nobody should be promoting or encouraging Zillow in any way shape or form.

[@TristanAhumada]

Exactly

[@JasonWalter1]

Great commentary. That form should be called the Nonexclusive Door Opener Agreement 🤨

[@TristanAhumada]

Hahaha. Yes. Thanks for watching too

[@larryjones9773]

The door opening task will eventually be outsourced to a security firm. Paying a security firm would be vastly cheaper than paying an exorbitant real estate agent fee. The free market will force a better alignment between task & who is assigned to said task. Real estate agent fees are higher than heart surgeons. Heart surgeons & real estate agents should NOT be opening doors.

[@abenovy-realtor]

#2 on the form is going to be interesting...most buyer's who sign an exclusive broker agreement barely even understand them. The exclusive agreement most agents complete typically doesn't use a specific address, it dictates a very broad area, such as county or multiple counties in which the buyer is represented. The number of people who call into Zillow to get a tour and ALREADY HAVE AN AGENT is astounding. Not only that, but many of them LIE through their teeth about it. I'd hope this actually helps them decide to just call their agent, but I doubt that will happen. All in all, this paper is mostly what you said...Zillow showing they care more about themselves than anyone else, including the consumer.

[@TristanAhumada]

Great comment.

[@curtissharris8914]

Call agent get vm next day retrun call 2 days to schedule viewing meantime house in escrow.

[@LookyLooRealEstate]

Why anybody pays zillow, or any other parasite on our industry, defies logic

[@KO-cj9ci]

All RE associations, state, local, and national needs to sue the Zillow’s and other complies not acting in the consumers best interest.

[@michaelhurley545]

Zilllow is scrambling to figure out something that is going to help with they're huge revenue loss that is going to happen with this new law. Zillows whole revenue was based on agents paying for buyer leads. After this law i cant imagine agents still paying them. Zillow has been trying to take over the whole industry they want to become the amazon of Real Estate..

[@hormannhomes7029]

How does this affect Procuring Cause if buyer lets us show them the property but uses another agent to write the offer?

[@Iconicgroupmelbourne]

MY QUESTION EXACTLY!!

[@toddschneider6403]

Good commentary. However, Zillow is opening brokerages. I think this is a ploy to get “their” agents to get leads and “court” those buyers first. They will continue the normal business model but I personally believe many of “their” agents will wind up getting the client into an agency agreement. Just my 2 cents

[@SherryStapfTolisano]

Most Excellent Tristan, at first blush, (for some) this might appear to be a FREEBIE and easier way to do business BUT NO Corporation gives away something for free without a hook! Nothing in the settlement has indicated a min or max amount of time the Buyer/Broker agreement is in place. There are so many ways to present this initially and then when moving forward. Great explanation of why this FREEBIE on its face isn't how a Professional REALTOR should do business. Thank you

[@TristanAhumada]

Really great comment here thank you.

[@ericvillalobos7751]

no buyers agent will require there buyer to sign an agreement before viewing a home lol people will still be seeing homes no ones gonna follow the rules...and the agreement will be signed down the line once a real, personal connection is made... and listing agents will allow any agent to show the home without buyers agreement lol

[@abenovy-realtor]

Oh, also, in Texas, this doesn't change the fact that showing a home to a buyer without a representation agreement makes you a "subagent", which means you technically have to take the seller's best interests in mind per the Texas IABS document.

[@TristanAhumada]

Yup. Good point.

[@leslieforreal]

Great point!

[@michellestuartTXBROKER]

Lead generation tool; nothing more, nothing less. Shotgun approach to lead generation and agent connection. Helps get in front of buyers potentiay needing a mortgage so they can sell Z's suite of services (shopping, mortgage, title, insurance, etc..). Great way to harvest complete lead info and put agent's safety and home sellers at risk by not requiring proper vetting and screening. Only my opinion.

[@goldbondisgod]

The weird thing is it doesn’t hold anything. So for example the client says i saw the house with the agent. I’ll just go to listing agent. Zillow gets nothing then. So it really doesn’t protect Zillow either

[@therealsamD]

Zillow is a real estate brokerage in our market and cannot dictate policy to other agents. If you are accepting leads from them then this is your problem. They are selling you your own listing leads and now telling you that you don’t have to have exclusivity with a client wanting to see yours or another members listings. They basically making you and your team a glorified door opener. Good job. Don’t expect paid as a professional if you don’t act like one.

[@gevabarable]

Wait NAR says you can not take a buyer to see a home without a buyer broker agreement that has compensation on it, so this doesn't work?

[@lindabyrne5692]

This touring agreement is not in my state's statutes of something that is required of agents to sign. It is not a form in my board's library (I am on the committee that writes the forms), and it is not in the library for my state's board of Realtors. SO I AM NOT SIGNING IT! I will not work for free. Ya. Ya. Ya. Buyers will say, "If I buy anything I will use your services." Famous last words. BUT let us not forget about crossing the threshold. I cross the threshold with a buyer I will expect to get paid. But my state mandates an unrepresented persons form or a buyer rep contract, not a Zillow 7 day touring form. This form is for Zillow agents only.

[@francineloring8070]

zillow's idea is pragmatic- it is also not a NEW concept! Online availability of listing makes the process look too easy! Buyer agency has been regulated since the late1990"s in the US individual states. Showing/opening doors to a property is one thing- representing the buyers in the process is totally a commitment for consultation & professional service.

[@patmagic3301]

Zillow doesn’t care about elevating agents, my guess is they’re trying to eliminate them, unless those agents work for Zillow. Sounds like Zillow is just like an agent, trying to make as much money for their business/shareholders as they can. Yeah great, get me to the house I’m interested in with the least amount of resistance. So buyers, yes, use this agreement and yes be very specific within the agreement when it does involve a potential commission i.e. I agree to pay X commission for the successful closing of X property or properties. You’re right, the sideline issue in the NAR settlement was that agents take 6%, that would be $30,000 on a $500,000 property for for what is essentially and sometimes literally opening a door (if you add pulling up a template on their laptop and sometimes driving a client to the property, still not a $30,000 task.)

[@TristanAhumada]

Great comment here.

[@Smitty_34]

The buyers agent would not make 30k based on this scenario. Your calculations are wrong.

[@patmagic3301]

@@Smitty_34your interpretation of my narrative is incorrect. I said “agents”. Yes I understand there is a broker split and all sorts of fees yada yada. My point is, buyers should be negotiating down from 6%. In a balanced market current technology makes it very easy for a buyer to find the home they want. Eventually, many years down the road, I hope to see the complete dematerialization of the agent role. I used one on my first property when I was young and uninformed.

[@Nogui_Aramburo]

The flex program doesnt allow to vet the buyer for financing, you’re supposed to just go out and show them the property 😂. This is just a variation of that.

[@coolsunshinerealty]

Thank you for another great video. My first impression with this Zillow "agreement" was, I don't work for Zillow and I'm not regulated by Zillow. I will determine what "agreement" is best for my client and my business, not Zillow (of course in accordance with state & local regulations).

[@TristanAhumada]

Great point!

[@Florina420]

High five Tristan! Seems like the entire earthquake in our industry caused by the recent lawsuits will lead to lower our role; and of course our commissions. Many lawyers claim now that they can do our jobs... I have some bad example on how this is not true.

[@TristanAhumada]

Great comment.

[@itechrealestateservices]

That' NOT what NAR means by "having an agreement signed". This does NOTHING. I'm NOT "touring" any buyer through a house without a BBA signed!!

[@TristanAhumada]

Excellent point

[@jonathanstafford3383]

cut out the agents and see how many still pay for Zillow leads

[@cynthiabarrow1867]

I'm not understanding the point of a non-exclusive touring agreement. Does it prevent the buyer from an exclusive agreement with an agent for seven days?

[@rodgerhardy685]

What about procuring cause? This doesn't address that. You show a property and then only procuring cause can protect you if at all, if the buyer goes to another agent to buy the property. Utah has had both exclusive and non-exclusive buyer-broker agreements for 30 years that are much better than this. You would be acting as a subagent to the seller's agent with this.

[@JohnGonzalezRealtor]

An agent would have to be a fool to agree to show a property without an agreement for their compensation. Screww Zillow!

[@bobjeffrey8863]

ZILLOW is sooo happy, Zillow will be the NEW Nationwide MLS, $$ MILLIONS

[@TristanAhumada]

BAM :)

[@Smitty_34]

Yes they will put MLS out of business because they can also list commissions on their website if they are the broker. All agents will be going to Zillow to see commissions.

[@Duval2005]

You are correct. Zillow keeps on manipulating agents and misinforming consumers. Serious and professional agents should not be using this agreement.

[@VANCOUVERHOUSEFINDER]

This is how I’m gonna start every video eating ice.

[@RichardParkerTheRealtor]

😂😂

[@BillBlackfund4u]

It sounds like one step closer for DOJ to require an hourly rate for a large group of "door opener" Realtors and remove the 1099 status like they did with Mortgage Brokers.

[@elmerr2123]

OpenDoor is doing something like this, but it’s 1099 so you get something like $75 to show a house and then $25 per showing there after. Its not quite rolled out where i live and im not sure if it will even make sense being that theres not enough movement right now. If it was changed to hourly i cant imagine it being more than about $15/hr unfortunately but again who does the cost trickle down to?

[@jeffrussell1041]

Bro, love the intro!!! ❤😂

[@TristanAhumada]

Hahahahahaa. Thanks

[@candiceculen]

The California Legislature is collaborating with the California Association of Realtors to revise the Buyer Broker Agreement in order to safeguard consumers. Part of the updated agreement will set a maximum term of 90 days with the opportunity for renewal, ensuring that long-term agreements are not permitted. Also love your final comment “use a document that builds a relationship not just opens doors” ❤

[@TristanAhumada]

Love that

[@Starfish2145]

I don’t know any agent who was ever asked a buyer to sign an agreement longer than 90 days

[@watchfull-tq5sy]

Wonder if this Zillow non-binding agreement to show homes for 7 days will pass N.A.R.’s legal settlement agreement?

[@TristanAhumada]

I don’t think so

[@MattTheMortgageGuy]

Thanks for covering all these changes. Will be many things changing this year and I am interested to see how different companies and agents evolve. I agree with you that this is an OPPORTUNITY to increase the level of service and professionalism in the industry.

[@TristanAhumada]

❤️❤️❤️✅

[@gevabarable]

why would an agent pay for a lead and enter an agreement that expires in 7 days and also doesn't have a commission amount?

[@TristanAhumada]

Good question

[@gevabarable]

@@TristanAhumada i would add that the NAR clearly said that you have to put an agreed amount of commission or flat fee etc on the agreement.

[@mlhm5]

I do not understand why anyone would go into the RE business when unlike before, there will be no commission paid to the agency or broker representing the buyer. IMO, neither the seller nor the buyer will negotiate anything with a buyer's agency - simply because the buyer can go to the listing agent and make the same offer. Before the court ruling a 5% commission (or whatever was negotiated between the seller and the listing agency/agent) was split between the listing agency and the agency/broker representing the buyer of the house. If an agency or broker made 50% of their income from listing houses and 50% from selling not their own listings, then after July 2024 they will be missing 50% of their income or more because sellers will never negotiate with a buyer's agent/agency and if they are smart will negotiate the 2.5% listing commission down to 1.5-2.0% leaving even less money for the RE agency and broker.

[@mjolles1976]

So I am wondering as "Door openers" do we the licensed agents have to do this or can we use an unlicensed assistant do this part? Seeing how nothing is being exchanged monitarily. I think anyone who just opens the door should do it for you the agent, then you can take the rest of the transaction from there. That's how I would approach it.

[@KO-cj9ci]

Until someone takes every valuable in the house and leaves the doors unlocked and have the property vandalized. The door openers have no liability and the listing agent gets sue for damages. Yeah-good idea. As a home owner that’s a terrible idea.

[@larryjones9773]

@@KO-cj9ci Eventually, door openers will probably be outsourced to security firms (maybe even Uber, who's already roaming neighborhoods).

[@realestatebykemi]

In most states, if not all, unlicensed people are not allowed to show homes, at least in Georgia.

[@larryjones9773]

@@realestatebykemi I'm sure security firm personnel & Uber drivers can get licensed. It's not like they need a college degree.

[@TheEblenRealestateTeam]

I completely agree.. We need to be able to educate..

[@TristanAhumada]

Thank you for watching

[@MichaelSmittySmithScottsdaleAz]

Zillow is using this agreement for a couple of reasons. 1. It's a lead magnet to collect buyers data. 2. They will introduce Zillows other services which are lending and title. Eventually they want to be like the builder who controls the transaction. They own followup boss and showing time. They are building relationships with all homeowners. Next they will try and make these buyers agreements standard so all agents have to use them to compete. This is a long game strategy to eliminate Nar

[@TristanAhumada]

I like your thinking

[@reynanledesma9580]

Great take!!! Thank you.

[@od2437]

I think this is a great thing, at least for me. I never needed agents as a buyer and I’ve bought 3 houses just by myself. Having this touring service makes it even easier for me to see houses. I have been contacting the seller agents directly to see houses and they are willing to show me the houses because I do not ask for any credits back, but it won’t work after the NAR settlement is in place. This Zillow service would be perfect, but will have to test it out.

[@Starfish2145]

You have bought three houses without a buyer agent? You are very lucky that you have not been screwed over by unscrupulous Sellers.

[@od2437]

@@Starfish2145 I guess so, but I’ve also done my homework. I lived in all 3 houses for about 2 years and I’m closing my fourth one in 3 weeks. They accepted my offer because of this, there were others competing! I kinda hope the nar settlement won’t pass. But will see how things evolve.

[@royanjohnson7648]

It’s time to leave Zillow behind. Zillow’s actions have contributed to the deepening housing affordability and inventory crisis. Their "Ibuy" initiative faltered, leading to offloading their single-family house inventory to institutional investors who converted them into rental units. Additionally, Zillow's utilization of Zestimate for market manipulation further compounds the issue. Given these concerns, it's prudent for prospective homebuyers, sellers, and renters to steer clear of Zillow's platform and instead seek guidance directly from trusted local real estate agents and brokers who can offer personalized assistance tailored to their specific needs and circumstances.”

[@ralphalvarez3200]

Are they planning to sell these agreements as lead generation?

[@TristanAhumada]

No. I just want to lock in the clients that come through as easy as possible.

[@PremierAdvantageRE]

Just quit NAR they bring nothing to the table.

[@DianaMcGee-ss3lx]

That form would not get Zillow agent in my listing. It is not a legally binding contract and means absolutely nothing.

[@TristanAhumada]

True. Very true

[@curtissharris8914]

Dont need a license to open doors. Give me that first 150$ per door

[@TristanAhumada]

I definitely don’t see any security issues with this. 🤨

[@curtissharris8914]

@@TristanAhumada agreed

[@realestatebykemi]

Yes you do, in Georgia. But I see where you’re going…

[@TristanAhumada]

@@realestatebykemi :)

[@VANCOUVERHOUSEFINDER]

Great video … you’re a g

[@TristanAhumada]

Thank you 🙏

[@antcaruso3465]

This zillow form looks like trash. Zillow can't dictate what the NAR rules are

[@TristanAhumada]

Exactly

[@barbimesrealtor1307]

Per the Colorado Assoc of Realtors Legal Hotline it is not an acceptable form in Colorado. Not authorized by The CO Real Estate Division nor a Colorado Atty. Let ZIllow use it here and get busted.

[@TristanAhumada]

I love hearing that. Thank you so much.

[@barbimesrealtor1307]

​@@TristanAhumada For my Colorado buds . . . kzbin.info/www/bejne/bGjLqH2DitqLjpo

[@matthewsoto8114]

Why show a client the house if you’re not their agent to begin with? If that’s dating, you’re getting laid for free.

[@TristanAhumada]

Hahahahahaha

[@EmpireOfRealEstate]

I wouldn’t waste my time. Become a listing agent. You must list to last. It’s more important now than ever!

[@arizonaflatfeemls4142]

Zillow and redfin will give all their leads to their agents and dominate with their Superior technology

[@Starfish2145]

Yeah, and those agents suck. They’re not gonna get the same level of service.

[@JC-sw7dv]

What a weird start to a video… gross

[@larryjones9773]

Easiest solution: never hire a buyer's agent. They add negative value.

[@TristanAhumada]

That’s definitely one solution 🤓

[@Starfish2145]

Really dude? I could tell you stories about how I have saved many buyers from getting screwed over by unscrupulous sellers or listing agents.

[@TristanAhumada]

@@Starfish2145 ❤️❤️❤️

[@larryjones9773]

@@Starfish2145 The rest of the world mostly doesn't have buyer's agents. You're used to getting a big check for doing little work. You're not being honest with yourself. I'm just letting you know how this is going to turn out. Your industry has illegally promoted the 'FREE' services of a buyer's agent, for decades. Only rich/dumb buyers will start signing a contract and agree to pay thousands of dollars. Buyers have a hard enough time coming up with a down payment, moving costs, etc. Buyers will do what the rest of the world does: work with the seller's agent and save themselves thousands of dollars. The rest of the world is laughing at our rigged system. Put yourself in the buyer's shoes. You would not pay him a nickel, right?

[@Smitty_34]

@@larryjones9773so the buyer will pay the Listing Agent. Conflict of Interest comes up in that scenario. E&O would not cover the buyer if he getting the agent to work for free, Listing Agents are not willing to put their license on the line to later be sued by the seller and buyer. And If the seller is paying me to work for him, I’m not working for free for the buyer.