Do I Have to Sign a Buyer's Agreement Before Touring Homes in Tennessee?

Do you have to sign a buyer's agreement before touring homes in Tennessee?

Yes — since August 2024, any REALTOR helping you tour a home in Tennessee must have a written buyer representation agreement in place before the tour, whether in person or virtual. This agreement must clearly state how much the agent will be compensated and cannot use vague language like "whatever the seller pays." Open houses are the one exception — you can visit any open house without signing anything, because they're public events that don't require an agent-buyer relationship. And the fee in your agreement is negotiable: in most Nashville-area transactions, sellers still pay the buyer's agent commission as a closing concession.

By Khristian Schlemmer | June 18, 2026

The single question I get most often from buyers in Lebanon and Mt. Juliet right now isn't about interest rates or home prices. It's this: "I called about a listing and they want me to sign something before I can even look at the house — is that normal? Do I have to do that?"

The short answer is yes. But understanding why, and what you're actually agreeing to, makes the whole thing far less intimidating. Here's how the buyer representation agreement works in Tennessee — and what to watch out for before you sign.

What the Agreement Actually Says — and What You're Committing To

The buyer representation agreement is a written contract between you and a real estate agent (or their brokerage) that establishes the terms of your working relationship. Since August 17, 2024, the National Association of REALTORS requires this agreement to be signed before any agent-facilitated home tour — in person or virtual. No agreement, no tour. That's the rule.

What the agreement must include, under the new requirements:

• A specific compensation amount — a percentage, flat fee, or hourly rate. The agent cannot write "whatever the seller offers" or leave it open-ended.

• The scope of services — what the agent will do for you: help you search, draft offers, negotiate, manage the transaction through closing.

• The duration — how long the agreement is valid (could be weeks, months, or tied to a specific property).

• The geographic area or properties covered — some agreements are limited to specific addresses; others cover an entire market.

  
  

The agreement is legally binding. That means if the agreement says the agent is owed 2.5% and you close on a home where the seller contributes nothing toward buyer agent compensation, you'd owe that 2.5% yourself out of pocket at closing.

This is why reading the agreement carefully — and asking questions before you sign — matters. It's not a formality. The compensation amount, the duration, and what triggers your obligation to pay are all negotiable before you put pen to paper.

One thing worth knowing: if you find a home where the seller is offering a buyer agent concession of 3% and your agreement says 2.5%, the agent cannot pocket the extra without your permission. And if the seller offers less than your agreed-upon rate, your agent must disclose that gap and discuss your options before moving forward on that property.

Open Houses Are Different — No Agreement Required

Here's the part that gives buyers the most flexibility: open houses are explicitly exempt from the buyer agreement requirement.

Open houses are public events. Anyone can walk in, look around, and ask questions of the listing agent — without signing anything, without establishing any agent relationship, and without any financial obligation. If you're curious about a neighborhood or a specific property but aren't ready to commit to working with an agent, attending open houses is the cleanest path forward.

What you can't do at an open house is have the listing agent represent you on that property — they already represent the seller. If you want to make an offer on a home you discovered through an open house, you'll need to work with your own agent (and sign an agreement at that point) or proceed without representation.

A practical approach that works well for many buyers: use open houses to explore, get a feel for different areas and price points in Lebanon and Wilson County, and identify the types of homes and neighborhoods that feel right. When you've found enough clarity to move forward seriously, that's the right moment to select an agent and sign an agreement — you've already done a lot of the exploratory legwork without any commitment attached.

Who Pays the Buyer's Agent — and How the Numbers Actually Work in Nashville

Here's the piece that confuses most buyers: the NAR settlement didn't mean buyers suddenly have to pay their agents out of pocket. What it changed is how the compensation gets handled.

Before August 2024, sellers typically offered a buyer agent commission directly through the MLS — it was baked into the listing, visible to all agents, and functionally invisible to buyers. That practice ended. Sellers can no longer advertise buyer agent compensation on the MLS.

What actually happens in the Nashville market in 2026: sellers still cover buyer agent fees in the vast majority of transactions — they just do it as a negotiated closing concession rather than an automatic MLS listing. The end result often looks identical to what it did before. The difference is that everything has to be disclosed and negotiated explicitly now.

Here's how it plays out in practice:

• Your buyer agreement specifies the agent's compensation (say, 2.5%).

• When you make an offer on a home, you can request that the seller pay your agent's fee as a concession.

• In a balanced market like Lebanon and Nashville right now — where homes are taking 60–90 days to sell and sellers have less leverage than two years ago — sellers are generally willing to do this. A reasonable buyer agent concession rarely kills a deal.

• If the seller says no, you and your agent discuss your options: cover the fee yourself, negotiate a lower agent rate, or move to a different property.

  
  

The average buyer agent commission in the Nashville area runs between 2.4% and 2.9% of the purchase price. On a $425,000 home in Lebanon, that's roughly $10,200 to $12,300. Understanding the full picture of what buyers pay at closing in Tennessee — including lender fees, title costs, prepaid items, and any agent compensation — helps you budget accurately before you start touring homes.

The bottom line: if you're buying in Middle Tennessee with a knowledgeable agent who understands how to negotiate the concession, you likely won't pay your agent's fee out of pocket. But you need to know what you've agreed to before you sign — and that agreement needs to protect you, not just the agent.

If you have questions about what the buyer representation agreement means, what's negotiable, or what to look for before you commit to working with an agent in Lebanon or the Nashville metro, I'm happy to walk through it with you. No pressure, no obligation — just a clear conversation before you sign anything. Reach out anytime.

Frequently Asked Questions

What if I want to see a home but I'm not ready to commit to an agent?

Most agents are willing to sign a limited agreement — covering one specific property or a short time window — rather than locking you in long-term. You can also attend the home's open house if one is scheduled, since open houses don't require a signed agreement. Using open houses to explore and assess agents before committing to a full representation agreement is a smart, low-pressure approach.

Who pays the buyer's agent commission in Tennessee after the NAR settlement?

In the vast majority of Nashville-area transactions in 2026, sellers still cover the buyer's agent commission — now offered as a closing concession rather than advertised upfront on the MLS. The key change is that the amount must be negotiated and disclosed in your buyer agreement before you tour. If a seller offers nothing toward buyer agent compensation, your agreement spells out what you'd owe directly.

Is the buyer representation agreement negotiable?

Yes. Commissions have always been negotiable, and the NAR settlement made that expectation even more explicit. You can negotiate the rate or fee, limit the agreement to a specific property or time period, and ask the agent to explain exactly what services they'll provide in exchange. Never sign an agreement that doesn't state a specific compensation amount — open-ended language leaves you exposed.

Can the buyer's agent commission be included in my loan?

Generally no — buyer agent compensation isn't a standard component of a mortgage loan. The most common path is to ask the seller to cover it as a closing concession, which reduces their net proceeds. In some loan types, a seller concession can be structured to include buyer agent fees. Talk to your lender about what's allowed under your specific loan program before assuming you can roll the fee into the mortgage.

Did Tennessee already require buyer agreements before the NAR settlement?

Yes. Tennessee has long required real estate agents to disclose their agency relationships and present written agreements to buyers. The NAR settlement made this practice mandatory nationwide before home tours, but Tennessee agents and buyers were already familiar with it. It's less of a culture shock here than in states where buyer agency agreements were rarely used before August 2024.

About Khristian Schlemmer

Khristian is a top-producing Middle Tennessee Realtor and founder of First Class Real Estate, serving buyers, sellers, and investors throughout the Greater Nashville area. With over $60 million in career sales and 200+ homes sold, he is known for creative marketing, strong negotiation, and delivering a true first-class client experience. Born into a family passionate about real estate investing and home building, Khristian combines local market expertise with modern marketing strategies to help clients confidently achieve their real estate goals.