What actually changed after NAR
Before August 2024, a seller's listing agreement usually specified how much of the commission would go to a buyer's agent, and that split was often visible in the MLS. Following the National Association of Realtors settlement, that changed in two concrete ways: buyer's agents can no longer advertise compensation offers in the MLS, and buyers must now sign a written agreement with their agent before touring homes, spelling out how that agent gets paid.
The practical effect: buyer agent compensation is now a direct conversation between you and your agent, not something baked invisibly into the transaction. That's a real shift in transparency, even if the day-to-day experience of working with an agent hasn't changed much for most buyers.
The buyer representation agreement
This is the document you'll sign before an agent can formally show you homes. It should specify:
- The agent's compensation rate or fee structure
- The duration of the agreement (a single showing, a set number of weeks, or an open-ended term)
- Whether it's exclusive (you can only work with this agent) or non-exclusive
- What happens if the seller doesn't offer to cover any part of your agent's fee
None of these terms are fixed by law — they're all negotiable before you sign. Read it fully before agreeing, and don't sign anything open-ended on your very first meeting with an agent you haven't worked with before.
How your agent actually gets paid
In practice, there are still a few common paths, and it's worth knowing all of them:
- Seller covers it. Many sellers still choose to offer buyer-agent compensation as part of their listing strategy — it's just negotiated directly now rather than advertised in the MLS. Your agent can ask the listing agent about this on any home you're interested in.
- You pay it directly. If the seller doesn't offer compensation, you're contractually responsible per your agreement. This can sometimes be rolled into the offer as a request for seller concessions rather than paid out of pocket.
- Some blend of both. A partial seller contribution with you covering the difference.
Common rates are still in the 2–3% range, but this is genuinely negotiable — get specifics in writing before you're touring homes, not after you've found the one you want.
Questions to ask before signing
A short, direct list worth asking any agent before you sign a representation agreement:
- What's your compensation rate, and is it negotiable?
- How long is this agreement, and can I cancel it if it's not working out?
- Do you typically ask sellers to cover your fee, and what happens if a seller won't?
- How many buyers are you currently representing, and what does typical response time look like?
- Can I see references from recent buyer clients in my price range?
Red flags to watch for
A few signs worth pausing on:
- Pressure to sign an open-ended exclusive agreement at a first meeting, before you've toured a single home together.
- Vagueness about compensation when directly asked — a good agent has a clear, confident answer.
- Steering you toward homes that happen to offer higher buyer-agent compensation rather than what actually fits your criteria. Ask directly if this ever comes up.
- An agent who's also representing the seller on a home you want to make an offer on (dual agency) without explaining what that means for your representation.
What good representation looks like
A good buyer's agent is transparent about compensation from the first conversation, responsive during time-sensitive moments like new listings and offer deadlines, willing to walk away from a deal that isn't right for you even if it costs them the transaction, and honest about a home's flaws, not just its selling points. If you're getting straight answers and feel like your agent is actually working for you rather than toward a closing, that's the real signal — more than any specific fee structure.
If it's not working out
If the relationship isn't working, check your agreement's cancellation terms first — many allow either party to end it with notice. Have a direct conversation before assuming you're locked in. Most brokerages would rather release an unhappy buyer than deal with a dispute later, and a reasonable agent will understand if it's genuinely not the right fit.