How to Explain a Buyer Agreement Before Showing a Home: The Script

The short answer

How to explain a buyer agreement: tell the buyer, before the first tour, that a written agreement is now standard practice, that it spells out what you'll do and how you get paid, and that your pay is negotiable. Walk through it in plain words, answer every question, and let them read before signing.

Buyers aren't scared of paperwork. They're scared of surprises. Your job is to take the surprise out.

What changed, in plain words

NAR's practice changes took effect August 17, 2024. Per NAR's "Written Buyer Agreements 101," an MLS participant "working with" a buyer must have a written agreement before touring a home, including in-person and live virtual tours. NAR says the agreement must:

• State the compensation amount or rate, or how it's determined, in a way that is "objectively ascertainable" and not open-ended.
• Say the agent can't receive more from any source than the amount agreed with the buyer.
• Disclose that broker commissions are not set by law and are fully negotiable.
• Include anything state law requires.

NAR also says its policy doesn't dictate the type of relationship. Agency, non-agency, exclusive or transactional arrangements are all possible where state law allows.

In Colorado, the Colorado Real Estate Commission publishes mandatory contracts and forms on the Division of Real Estate site, including the Exclusive Right to Buy Listing Contract and the Brokerage Disclosure to Buyer. The Division has also released 2027 versions for education, with a mandatory use date of January 1, 2027. Which form fits your buyer is a question for your managing broker. Don't guess.

Step by step: how to explain a buyer agreement

1. Bring it up on the first call. Don't spring it at the front door. "Before we tour, we'll sign a short agreement. I'll walk you through it."
2. Meet before the first showing. In person or on video. This is your buyer consultation, not a signing ceremony. See the buyer consultation step by step.
3. Explain why it exists. It's a national practice change and it protects them by putting everything in writing.
4. Walk through the four things they care about. What you'll do, how long it lasts, how you get paid, and how it ends.
5. Say the negotiable part out loud. Commissions aren't set by law. Say it before they ask.
6. Explain who might pay. A seller may offer to cover some or all of the buyer's agent fee, but they don't have to. Show how that plays out in the agreement your brokerage uses.
7. Let them read it. Give them time. Offer to send it the night before.
8. Answer, don't push. If they need a day, give them a day.
9. Sign before the tour. Then go see houses.

The four things to cover

The script

If they say "I just want to see this one house": "Totally fair. We can set up an agreement that covers just this property, if that works for you. That way you can see it today and decide about the rest later." Confirm with your managing broker which forms and terms your brokerage allows for this.

If they say "Do I have to sign to talk to you?": "No. We can talk all day. The agreement comes in before we tour a home together."

Watch-outs

• Not legal advice. Never tell a buyer what a clause means legally. Point them to the form and suggest an attorney if they want one.
• Use the current form. Colorado forms update; the 2027 versions become mandatory January 1, 2027. Use what your brokerage provides.
• No open-ended pay. "Whatever the seller offers" is open-ended. NAR says the amount has to be a specific, objectively ascertainable amount or rate.
• Don't promise a seller will pay. They don't have to. Say so.
• Ask your managing broker about touring-only, single-property or shorter-term options before you offer them.

Sources

• NAR: Written Buyer Agreements 101
• Colorado Division of Real Estate: Real Estate Broker Contracts and Forms
• Colorado Division of Real Estate: 2027 forms advisory

Keep going

• Next: the buyer consultation step by step, the objection handling framework, commission objections
• Want it ready to use? The Rep Vault buyer consultation kit gives you the talk track, the walkthrough and the follow-up so every buyer meeting runs the same way. Want to drill this script first? Practice it free at /roleplay/.

This is training for real estate agents. It isn't legal, tax or lending advice. Check with your managing broker.

Frog tip: Six open house names entered and called beat thirty names on a clipboard in your car. The open house ends when the last follow-up call is made. Learn more →

Questions

Do buyers have to sign an agreement before seeing a house?

Under NAR's practice changes effective August 17, 2024, MLS participants working with a buyer need a written agreement before touring a home, in person or live virtual. Check your state's rules and your brokerage policy.

What has to be in a written buyer agreement?

Per NAR: a specific, objectively ascertainable compensation amount or rate, a statement that the agent can't receive more than that from any source, a disclosure that commissions are negotiable, and anything state law requires.

What form do Colorado agents use for buyer agreements?

Colorado Commission-approved forms include the Exclusive Right to Buy Listing Contract and the Brokerage Disclosure to Buyer. Ask your managing broker which applies.

Can a buyer agreement cover just one house?

NAR says its policy doesn't dictate the type of relationship. Whether a single-property agreement is allowed depends on state law and your brokerage, so ask your managing broker.

Is the buyer's agent commission negotiable?

Yes. NAR requires the agreement to disclose that broker commissions are not set by law and are fully negotiable.

Brian Lee Burke is the founder of PadLeaders, a Colorado real estate broker licensed since 2003, team leader of The Kenna Group at Keller Williams DTC (formerly Kenna Real Estate Group) and the author of Mastering Real Estate and The Real Estate Playbook. More about Brian.