You've done your research, found a property you're excited about, and reached out to a REALTOR® to schedule a showing. Then — before you've even stepped inside — there's a legal agreement in front of you. Here's exactly what it is and why it's actually a good thing.
A Little Background
Buyer Agreements aren't new. Many agents have used them for years — typically as part of the contract package once a buyer decided to make an offer. What changed is when the agreement has to happen.
As of August 17, 2024, the National Association of REALTORS® requires that a Buyer Agreement be completed before a REALTOR® shows a client a property. This is part of NAR's settlement terms following a wave of lawsuits that made national headlines. The requirement is straightforward: any REALTOR® working with a buyer must discuss and agree on the terms of representation before services are provided.
That means before you enter the home.
What the Agreement Actually Covers
The document you'll be signing is called the Exclusive Right to Represent Agreement. It exists to bring clarity and transparency to your relationship with your agent from the very start — before any homes are toured, any offers are written, or any decisions are made.
As a buyer of potentially one of the largest investments of your lifetime, you deserve a clear understanding of what your agent will do for you and how they'll be compensated for doing it. This agreement provides exactly that.
It covers two core things:
Services
Your agent should walk you through exactly what they'll provide throughout your search and purchase process. Here are some of what may be included:
- Search for and identify potential properties
- Schedule and attend showings
- Provide current market analysis and comparables
- Strategize on how to make your offer competitive
- Complete and submit contracts and addendums
- Negotiate on your behalf
- Schedule and attend inspections
- Negotiate repair requests
- Submit documents to the closing agent
- Review closing documents with you
The list goes on — but the point is that you should know what you're getting before the process starts.
Fees & Compensation
This is where the new requirements have prompted the most conversation. As the industry adapts, you may find that different agents offer different service structures — flat fees, à la carte options, or a percentage of the sale price. No matter the format, the agreement creates an open, honest conversation about compensation from the very beginning.
It's also worth knowing that some sellers are willing to contribute to some or all of the buyer's agent fee — but this isn't always the case. It's something that gets negotiated as part of the contract, and it varies from transaction to transaction. Your agent can help you navigate that conversation when the time comes.
One thing worth understanding: REALTORS® are typically paid only by commission or the fees outlined in the agreement. There's no base salary, no guaranteed income. The time and expertise an agent brings to your transaction is tied directly to the terms you've both agreed upon — which is all the more reason to make sure those terms are clear before you start.
Why This Is Actually a Good Thing
Change can feel uncomfortable, especially when it involves legal agreements and homes you're excited about. But the intent behind this requirement is transparency — and that's hard to argue with.
One common assumption that's come up a lot lately is that the seller has always paid the commission for both the buyer's and listing agents. While that has been — and still is — a pretty typical arrangement, it was never a guaranteed rule. Sellers have always had the ability to negotiate what they contribute, and that remains true today.
Your agent's services and expectations haven't changed. What has changed is that the terms of representation are laid out clearly from the start, so you know exactly what to expect. Take the time to read through the agreement, ask questions, and make sure you're confident in who you're working with before you start touring properties.
If you're thinking about buying in the Northern Neck — whether you're searching for waterfront, rural acreage, or a home in town — I'd love to walk you through what a Buyer Agreement looks like and what working together would mean for your search.
804.761.5462 | [email protected] | www.anjelica.realtor
