Choosing an agent now requires more than asking for a sales record and a personality fit. Buyers may be asked to sign a written representation agreement before touring a home, agent compensation must be stated in an objectively ascertainable way, and offers of buyer-agent compensation are no longer displayed on NAR-affiliated MLSs. Old advice that a buyer’s agent is simply “free” can misstate both the agreement and the negotiation.
This guide helps buyers and sellers compare representation, services, conflicts, communication, contract terms, and compensation under the current framework. It separates negotiable business terms from legal requirements and gives you questions to ask before signing an agency, listing, or buyer agreement.
Start by deciding what representation you need
A buyer may want help defining the search, finding properties, arranging tours, analyzing price, preparing offers, negotiating inspections and credits, tracking financing and appraisal issues, and reaching closing. A seller may want pricing, property preparation, marketing, showing management, offer comparison, negotiation, disclosure coordination, and transaction management. Write the required services before interviewing agents so each person responds to the same job.
Agency law differs by state. Ask whom the agent and brokerage would represent, what duties are owed, how confidential information is handled, and what happens if the brokerage represents both sides. Do not infer representation from who opened a door or answered an online inquiry.
What changed for buyer-agent compensation
NAR’s settlement-related practice changes took effect August 17, 2024 for covered MLS participants. Offers of compensation may not be communicated through an MLS, and agents working with buyers generally need a written buyer agreement before touring a home under the NAR policy. NAR’s consumer guidance says an open house visit or an initial conversation about services does not necessarily require that agreement, while state law or brokerage policy may impose separate requirements.
The agreement should describe services, duration, compensation, and other material terms. Under NAR’s current guidance, compensation must be objectively ascertainable rather than open-ended, and the buyer broker generally may not receive more than the amount or rate agreed with the buyer. Buyers should not sign a clause that says compensation will be whatever a seller offers.
Who can pay the buyer’s agent
Payment and obligation are separate questions. A buyer may agree to compensate their broker, while a seller or listing broker may offer to pay some or all of that amount outside the MLS. A buyer may also request seller-paid compensation in an offer, subject to negotiation, contract language, lender rules, appraisal considerations, and law. A seller is not automatically required to pay a buyer’s broker, and a buyer is not automatically insulated from an agreed shortfall.
Seller concessions are also distinct from an offer of broker compensation. They may be used for certain buyer costs, potentially including buyer-broker fees, but the purchase contract and financing rules determine what is allowed. Have the agent show the dollar consequence of each structure rather than treating “seller paid” as costless.
Interview for competence in your actual transaction
Check evidence, not just volume
Ask for examples that resemble your transaction and what the agent personally handled. A high number of sales can reflect a team, a broad market, or a different property type. For sellers, review pricing logic, marketing assets, showing plan, feedback process, and how price changes will be decided. For buyers, review search strategy, offer analysis, inspection negotiation, and how the agent handles homes where compensation is not offered.
Verify the license through the state real-estate regulator; the Association of Real Estate License Law Officials maintains a regulator directory. Check public disciplinary information where available, confirm the brokerage, and ask how complaints are escalated. References are useful, but they do not replace license and contract checks.
Watch for steering and fair-housing problems
An agent should not steer a buyer toward or away from a property because of buyer-broker compensation. Ask to see all properties meeting the agreed criteria and how off-MLS compensation information is obtained. If a compensation gap exists, the agent should explain lawful options and the financial effect rather than silently filtering the search.
Neighborhood guidance must also comply with fair-housing law. Ask for objective sources on commute, taxes, schools, crime data, zoning, accessibility, and services, then evaluate them yourself. HUD’s fair-housing guidance explains protected rights and complaint channels.
Read the agreement line by line
- Confirm the parties, property or geographic scope, services, start date, duration, and whether representation is exclusive.
- Convert every compensation formula into examples at likely purchase or sale prices.
- Identify who may pay, how third-party payments are credited, and what happens when they are less than the agreed amount.
- Review dual-agency or designated-agency language, conflicts, confidentiality, dispute resolution, termination, and the protection period.
- Ask for changes before signing. Do not rely on a verbal statement that contradicts the written agreement.
Choose the agent whose agreement matches the service
The best fit is the agent who can explain representation, services, evidence, communication, compensation, and exit terms without pressure or ambiguity. Compare the written agreements as carefully as the résumés. Fees and services are negotiable; a lower fee may provide less service, while a higher fee is not proof of better performance.
If you are buying from a distance, pair these questions with Moveline’s long-distance home-buying guide. The CFPB also recommends building an independent network of advisers so the agent is not the only source for financing, inspection, legal, and closing decisions.
