The term caveat emptor, or "buyer beware," has perhaps never been more important in the housing market than it is now. That's because more and more buyers are being asked to sign contracts linking them to the real estate agents helping them find a house.

Most of these contracts are so one-sided and onerous, says the Consumer Federation of America, that buyers might be better off hiring a real estate attorney and working directly with the listing agent.

Earlier this year, the CFA examined 43 so-called buyer-broker contracts from 37 states, most of which were written by state Realtor associations, and found them wholly lacking in consumer protections. In fact, most were written to protect the agent, not the client.

One of the worst contracts was the draft from the California Association of Realtors, one of the largest and most influential groups in the country.

Law professor Tanya Monestier of the University of Buffalo Faculty of Law evaluated the document at the CFA's request, and found that the CAR draft contract was “virtually unreadable. No layperson will be able to understand and appreciate the terms they are agreeing to.” She concluded that the contract “disguises the obligation of the buyer to pay his agent” and that it "telegraphs how Realtors plan to circumvent the NAR settlement" -- referring to the class action lawsuit resolution signed by the National Association of Realtors in March.

Under that settlement, starting Aug. 17, multiple listing services will require buy-side agents to obtain clients' signatures on representation contracts. Until now, such contracts were rarely required.

Among other issues, Monestier said the CAR contract contained "problematic provisions related to dispute resolution, dual agency, commissions owed and buyer cancellation." Her recommendation: CAR should dump the whole contract and start over.

For its part, CAR says Monestier’s evaluation “was based on an outdated version” of its draft contract, and that the latest incarnation addresses many of the concerns the professor raised.

Not every buyer-broker contract is worth trashing, though. The CFA holds out one from eXp Realty as exemplary, saying it could serve as a model for other groups’ contracts.

“The contrast between the CAR and eXp contracts could not be sharper,” says Stephen Brobeck, a CFA senior fellow. “The eXp contract is written with the buyer in mind. The CAR contract is written with the interests of the Realtor in mind.”

Unfortunately, most of the other contracts the CFA reviewed left something to be desired.

“Buyer agency contracts have the potential to protect homebuyers, but the way most are written, (they) protect only agents and their brokers,” says Brobeck. If unfair provisions are not removed, he says, buyers should jettison their agents and consider hiring an attorney and working directly with the listing agent.

The unjust practices discovered by the CFA include:

-- Charging unreasonable fees, which are often not counted as commissions.

-- Limiting remedies for buyers who are dissatisfied, "including prohibiting litigation and limiting awards to the amount of the agent’s compensation."

-- Protecting agents and their brokers from uncoupled commissions, which was the basis for most of the class action lawsuits in the first place.

Brobeck described that last proviso as “the most troubling."

The term "coupled commissions" refers to the common practice of buyer-agents collecting commissions from both their clients and from sellers. The real estate industry fears that if commissions are uncoupled, consumers will be able to negotiate lower rates.

Contract provisions that protect agents from "uncoupling" essentially allow them to sidestep the new regulations and seek additional compensation from listing agents. In short, says Brobeck, "Agents and their brokers will be able to continue colluding to maintain existing commission rate levels."

If your agent asks you to sign a buyer-broker agreement, request a copy right away so you have time to read it over carefully, evaluate the provisions and negotiate the terms.

For starters, ask for a 60-day contract, not one that obligates you to work with the agent for 90 days or longer. You’ll also want to strip the agreement of any penalty clauses for early termination. “Most contracts allow agents to unilaterally withdraw from the agreement, and buyers should have the same opportunity,” says a CFA report.

Next, bargain hard on what you’ll pay your agent. Agents should be willing to take a lower cut if you are prequalified for financing, are paying cash, found the property on your own, or if the place is unduly expensive. Also, find out if your agent will be seeking additional compensation from the seller, which may tempt them to steer you to certain listings.

Consider paying your agent a retainer, which protects them in case you decide not to buy after they do a lot of work on your behalf. But if a sale does eventually go through, the agent's retainer should be credited as part of their commission.

Don’t allow the agent to abandon their fiduciary responsibilities to you by, for instance, promoting properties that their firm has listed in order to retain the entire commission. Only agree to such a scenario if you have evaluated numerous houses and truly want the one listed by your agent.

Builders are constructing their smallest houses in years, but they still may not be small enough for a significant portion of the population.

More than a third (38%) of the builders responding to a recent National Association of Home Builders poll said they built smaller houses last year, and 26% said they’re going smaller this year.

The average size of new homes built in 2023 fell to 2,411 square feet -- the smallest since 2010. And the NAHB expects the trend to continue as long as affordability remains a problem.

But another survey, this one from real estate investment company IPX 1031, indicates builders need to cut a lot more space from their models. Nearly three-quarters of the over 1,000 respondents said they would consider living in a tiny home, which is generally defined as one of 500 square feet or less.

Affordability was the main reason, of course, followed by the desire for a minimalist lifestyle and the lack of a need for a larger home.

Senior readers will no doubt remember when people bought houses right out of a Sears catalog. The old department store chain sold more than 70,000 mail order houses, many of which are still standing.

Now you can buy a tiny house off Home Depot’s website. The bestseller is a 444-square-foot, two-bedroom, one-bath cottage priced just over $26,000. A smaller studio unit with one bath goes for about $19,000.

Delivered right to your driveway, the packages include a steel frame, which you have to assemble. You must provide a concrete slab, utility connections and all finish materials, including siding, roofing materials, exterior doors and windows. Local building code approvals are necessary, too.

Who doesn’t want to live close to a park -- especially in a city, where green space is at a premium?

You’d think that residences in close proximity to a park would sell at higher prices because of the recreational and aesthetic benefits, but that's not always the case. In fact, new research published in the Journal of Housing Economics found just the opposite, at least in China, where the study focused.

The study found that, despite the positive aspects of urban parks, nearby homes sold for 2% less than in other places. Proposed explanations included crime, congestion, air pollution and traffic noise.

Whether or not the same is true in U.S. cities, the study is certainly food for thought.

Catching up on a couple of issues discussed in previous columns: Idaho is the latest state to ban so-called home equity theft, and Connecticut, Illinois, Louisiana and Minnesota are the latest to pass bills protecting homeowners against unfair fee agreements being filed as liens.

Idaho joins Nebraska, Maine and South Dakota in banning home equity theft -- the term for local authorities keeping the excess proceeds from foreclosure sales -- after the U.S. Supreme Court unanimously ruled last year that the practice is unconstitutional. (Several other states already had such laws on the books prior to the SCOTUS ruling.)

Taxing authorities can still foreclose on homeowners who fail to pay their property taxes. But if the foreclosed home sells for more than the owner owes, the difference belongs to the owner, not the taxman, the Supreme Court said. “The taxpayer must render unto Caesar what is Caesar’s, but no more,” Chief Justice John Roberts wrote.

Meanwhile, 30 states now outlaw the practice of filing exploitative real estate fee agreements in property records. Known as Non-Title Recorded Agreements for Personal Services (NTRAPS), the documents are used to prey on homeowners, who are offered small cash gifts in exchange for decades-long contracts for the exclusive right to sell the property.

The state laws against NTRAPS are all different, but generally they make NTRAPS unenforceable; restrict, prohibit and/or penalize their recording; and provide for their removal from the property records and the recovery of damages.

Ten states (so far) have also sued MV Realty, the Florida firm that persuaded hundreds of homeowners to sign 40-year listing contracts in exchange for cash payments of up to $5,000. The company then recorded the contracts as liens so that if a property was sold using another brokerage, MV still had to be paid a commission.

MV has filed for Chapter 11 bankruptcy protection in 34 states, which the U.S. bankruptcy trustee office has argued is a tactic to stall state prosecutors who have filed lawsuits against the company.

Loose lips can not only sink ships, they can also scuttle real estate transactions. Or, as one agent told me, “loose lips, opportunity slips.”

“When you have your home for sale, be careful what you say,” says South Carolina agent J.L. Boney. Sure, put the word out that you're selling, but "steadily complaining about how much your hate your house is not going to win you a lot of brownie points and instill a ton of confidence" in potential buyers.

Boney was talking about discussing your property on social media. But sellers can also foul the deal by running their mouths during showings.

California agent Christine Kankowski once had a seller who kept saying -- in front of potential buyers -- that they were moving because the house's rooms were too small. Buyers don’t want to hear that. They can see the rooms and decide for themselves.

“If you point out that (something) is problematic to you,” Kankowski says, “they will probably think it will be problematic for them, as well.”

You shouldn’t run your mouth after you land a buyer, either. North Carolina agent Debe Maxwell recalls hearing about a seller who posted that their “stupid buyer” was paying over list price, and that the house probably wouldn’t appraise for that much.

It sure didn’t, and the buyer, who had seen the comment online, refused to pay anything above the appraised amount. “Those loose lips cost (the seller) at least $10,000,” says Maxwell.

Foot-in-mouth disease can even hurt you at the closing table. Georgia agent Macy Babb had one client who talked so much at settlement that she had to kick him under the table to get him to shut up. “A deal is not closed until you have signed at the attorney’s office,” she warns.

One thing sellers should never disclose is their motivation for moving. Buyers don’t need to know you hate your neighbors, you're getting divorced, you lost your job or you’ve been transferred. Information like that can be used against you because it indicates you are selling because you have to, not because you want to.

But buyers, too, can disclose too much. Sure, you’re excited about finding a house, but be careful what you say online. It could come back to haunt you.

Like the buyer who posted on Facebook how much he wanted a certain house, and how much he was willing to pay. His offer, however, was much less than that -- even below the asking price. The seller saw the post and countered at the exact price the buyer mentioned online. (True to his word, at least, the buyer agreed to the higher number.)

It's best not to share your joy until after the transaction is closed. The same goes for sellers -- maybe especially for sellers. Be careful what you say, because negative comments travel fast and far.

Don't rant about how much you hate living under the dictatorship-like homeowners association. Don't divulge that you are under the gun and absolutely, positively have to move out in two short weeks.

It’s not like sellers can legally hide much of anything from would-be buyers, anyway: With today’s disclosure laws, everything about the house must be laid out there for the world to see. If you know the basement leaks, for example, you must reveal that. In many places, you must even inform buyers if someone died in the house, even if you believe it is totally inconsequential.

But you don’t have to divulge anything about yourself or your reasons for selling. Any little tidbit can be used against you.

One time, Maryland agent Melissa Spittel got a great deal on a house because the seller posted that she had found her next home and was desperate to get her current place under contract.

In another instance, someone pulled up in front of a house for sale and engaged the owner in conversation. The stranger complimented the house, but said it was listed “way above what he could afford.” Feeling comfortable with the passerby, the seller revealed his bottom-line number. The next day, an agent showed up with an offer at that exact price from the sly passerby.

In Atlanta, one agent tries to engage sellers in small talk during showings, hoping to elicit an advantage for his buyers. “Sellers talk way too much," the agent says. "There’s rarely a time we don’t leave with good information."

That’s why it’s best for sellers to make themselves scarce during a showing or an open house. That way, there’s no temptation to run your yapper and give away your bargaining points without even realizing it.

A Canadian agent uses a different ploy. He posts this warning in his office, in big, bold letters: “Anything you say to any real estate agent can and will be used against you to get a lower price for your home.”

The sign is a little garish, but it gets the point across.