Buyer Agent Agreements After the Realtor Commission Settlement
Since the National Association of Realtors settlement took effect in 2024, most buyers working with an agent are asked to sign a written agreement before touring homes, and that agreement spells out how the agent gets paid. Sellers may still offer to cover your agent's fee, but it is no longer automatic, so you should read the agreement carefully and know that commissions are negotiable.
What the settlement changed
In early 2024, NAR announced a proposed $418 million settlement of lawsuits brought by home sellers. The suits argued that the traditional system, where the seller paid both their own agent and the buyer's agent, violated antitrust laws and pushed up costs.
Historically, total commissions were often around 5% to 6% of the sale price, split between the two agents. On a home near the national median price at the time, that could mean more than $25,000 in fees.
Two practice changes stood out once the new rules took effect:
- Offers of buyer-agent pay were removed from MLS listings. Sellers can still offer to pay a buyer's agent, but that offer is no longer posted on the shared listing databases agents use.
- Written buyer agreements became standard. Agents working with buyers generally need a signed agreement that states what they will be paid before showing homes.
Rules and how they are applied can vary by state and brokerage, so check current requirements where you are buying.
How buyer agreements work
What the agreement typically covers
A buyer agreement usually spells out the services the agent will provide, how long the agreement lasts, whether it is exclusive, and how the agent will be paid. Compensation must generally be a specific, objective amount or rate, not open-ended.
Who pays the agent
To be fair, your agent may still be paid by the seller if the seller agrees, either through the listing brokerage or as a concession in your offer. If the seller does not cover the full amount, the agreement may make you responsible for the difference. Read that section closely.
Duration and cancellation
Agreements can range from a single showing to several months. Ask how you can end the agreement if the relationship is not working, and whether any fees would still be owed.
Negotiating your agent's pay
Commissions have always been negotiable, but the settlement has made that more visible. A Florida State University business professor noted that the change largely depends on consumers actively speaking up rather than accepting defaults.
Some options buyers discuss with agents include:
- A flat fee instead of a percentage.
- A lower percentage in exchange for fewer services.
- A fee structure where any seller contribution is credited against what you owe.
- Hourly or à la carte help, such as offer writing or contract review only.
Ask several agents how they charge and what they include. The cheapest option is not always the best fit, especially for first-time buyers who may value more guidance.
How sellers and buyers are adjusting
Early on, some sellers began listing buyer-agent pay as zero or "negotiable," while some buyers paused their searches hoping costs would fall. Whether lower commissions lead to lower home prices over time is still debated, since prices depend on many factors.
If you have limited cash, ask your lender whether seller concessions toward your agent's fee are allowed under your loan program, since that can affect how much you need to bring to closing.
Vehicle contracts deserve the same attention. If you have a car lease, a quick car lease payoff check can show whether your vehicle is worth more than its buyout, which can be handy when planning other big expenses.
Questions to ask before you sign
- What exactly will you do for me, and what will you not do?
- How are you paid, and what happens if the seller does not cover your fee?
- How long does this agreement last, and how can either of us end it?
- Is this agreement exclusive to you or your brokerage?
- Will you work with me if I find a home on my own or through a builder?
Comparing agents before you commit
Because you now sign an agreement early, it pays to interview more than one agent. Ask how many buyers they have helped in your price range recently, how they communicate, and how they handle situations where the seller will not pay their fee. Request a sample agreement to read at home before your first tour. If anything is unclear, ask for it in writing or have a real estate attorney review it. A few extra conversations at the start can prevent misunderstandings when you are under contract and short on time.
Frequently asked questions
Do I have to sign an agreement just to see a house?
In many places, agents are now expected to have a written agreement before touring homes with you. Some agreements can be short-term or limited to a single property.
Can the seller still pay my agent?
Yes. Sellers can agree to pay some or all of a buyer's agent fee, often as part of offer negotiations. It is simply no longer advertised on the MLS.
Will I have to pay my agent out of pocket?
Possibly, if the seller does not cover the agreed amount. Some loan programs limit how agent fees can be paid, so ask your lender.
Can I buy without an agent?
Yes, though many buyers find an agent or a real estate attorney helpful for negotiating and managing deadlines. Requirements vary by state.
Did the settlement lower home prices?
It is too early to say with confidence. Commissions are one cost among many, and prices are driven by supply, demand, and interest rates.
The bottom line
The settlement shifted how buyer agents get paid and put more paperwork upfront. Read your buyer agreement carefully, negotiate compensation openly, and ask a real estate attorney or other qualified professional about rules in your state.