2024 Open House Rules: Crack the Compliance Code

'If I don't want to cold call and have no marketing budget, how will I ever generate leads?'

Author

Tim and Julie Harris
September 11, 2024

HARRIS Real Estate Daily

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Welcome back to America's #1 Daily Podcast,  featuring America's #1 Real Estate Coaches and Top EXP Realty Sponsors in the World, Tim and Julie Harris. Ready to become an EXP Realty Agent and join Tim and Julie Harris?  Visit: https://whylibertas.com/harris or text Tim directly at 512-758-0206.

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Agents frequently ask, 'If I don't want to cold call and have no marketing budget, how will I ever generate leads?'  That's a valid question our Harris Certified Coaches answer in the daily coaching sessions.  One consistent, nearly free method of generating leads is, of course, holding effective Open Houses.

We'll do a drill down later this week with a specific, step-by-step guide to turning your open houses into an all-out lead generation machine.  But first, we need to clarify the new rules for you so you'll have confidence that this is something to pursue at a high level.  Some of you are nervous about holding open houses in the new, more regulated environment.  There's a lot of misinformation about what you can and can't do these days!

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Here's your new Open House Compliance Code!  

(print the notes from today's Podcast in case other agents challenge you on the facts)

1. No Written Agreement Required for Open Houses:

  • If a buyer attends an open house without an agent, they do not need to sign a written buyer agreement just to tour the property. Open house attendees can explore homes freely without formal obligations, considered informal interactions.

2. Hosting Agents Do Not Require Buyer Agreements:

  • Agents hosting an open house on behalf of the listing agent do not need to enter into written agreements with potential buyers attending the open house. This is because the hosting agent is representing the seller at that time and not directly working with the buyer

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3. Written Agreement Needed for Personal Showings and Live Virtual Tours:

  • Once an agent begins actively working with a buyer—meaning they start providing services such as identifying properties or scheduling personal home tours—a written buyer agreement is required before any private showings or live virtual tours.|

  • NAR defines a "virtual tour" as a live, agent-guided tour in which the buyer is not physically present. For example, the agent walks through the property using video communication (such as Zoom or FaceTime). These live virtual tours are treated the same as in-person showings.

  • Pre-recorded video tours do not count as live tours, so no written buyer agreement is needed for those types of marketing materials

4. Clear Compensation Terms in Buyer Agreements:

  • Any written buyer agreement must clearly outline the compensation terms, whether a flat fee or a percentage of the transaction. Agents cannot receive more compensation than agreed upon with the buyer in these contracts.

  • Sign up for your new Ethical Real Estate Professional designation and Buyer Presentation today.  You'll meet new buyer prospects at your open houses, potentially solidifying the relationship to see more than just the open house and more than a one-time showing situation.  

These new rules focus on increasing transparency and ensuring that real estate professionals and buyers know about compensation and service agreements, especially regarding showings and tours.  When you know the rules, you can have successful open houses, generating more business and staying on track to meet or exceed your goals this year!