Buyer's Agent
A licensed real estate professional who exclusively represents the home buyer's interests throughout the purchase process.
What is Buyer's Agent?
A buyer's agent (or buyer's representative) is a licensed real estate professional who works exclusively on behalf of the home buyer, providing fiduciary representation throughout the property search, offer, negotiation, and closing process. The buyer's agent helps identify suitable properties via MLS access, advises on offer price and strategy, negotiates terms with the listing agent, coordinates due diligence (inspection, appraisal), and guides the buyer through closing. Traditionally, buyer's agent commissions (typically 2.5%–3% of the purchase price) were paid by the seller out of the total commission pool. Following a 2024 National Association of Realtors settlement, buyers must now formally agree in writing to buyer's agent compensation before touring homes, increasing transparency in how agents are paid.
Example
Under the new commission rules effective August 2024 following the NAR settlement, a buyer purchasing a $450,000 home must sign a written buyer representation agreement specifying the buyer's agent's compensation rate before beginning property tours. If the seller offers a 2.5% buyer's agent commission ($11,250), the buyer's agent fee is covered. If the seller offers less or nothing, the buyer must either negotiate for the seller to cover the shortfall or pay the difference directly at closing—representing a significant shift from the prior system where buyer's agent fees were largely invisible to buyers.
Source: National Association of Realtors