How has the way buyer’s agents are paid changed?

by Alessandra Imanabadi

By Alessandra Imanabadi · Nationwide Fine Homes

Expect a written explanation of the service and compensation early in the relationship. Do not assume the seller will cover the entire amount.

The national practice changes and California’s requirements have made the buyer’s agreement more visible. That does not mean an open-house visit automatically commits you to the agent at the door.

Understand the agreement before represented showings

California requires a buyer-broker agreement as soon as practicable, no later than the buyer’s offer. Current regulations presume it is practicable before your agent shows you a property. The agreement should explain the services, compensation and duration. For individual buyers, the initial term generally cannot exceed 90 days; renewal requires a separate agreement.

An agent showing a home solely on the seller’s behalf is not automatically your buyer’s agent.

Seller payment remains a negotiation

In my experience, many sellers remain willing to contribute toward buyer representation. That is local practice I have observed—not a guarantee for the home you choose.

Offers of buyer-agent compensation cannot be posted on the MLS under the settlement practice changes, but they may be discussed outside it. Your agent can investigate the seller’s position before you offer and explain any amount you could owe under your agreement.

Ask for a simple dollar example

If the agreed fee is one amount and the seller contributes a smaller amount, what would you pay? If the seller contributes nothing, what are your options? Understand that before building a buying strategy around an assumption.

Your agent should make this conversation comfortable and specific.

I would be pleased to explain my service and agreement in plain language. You can consider both before deciding whether the relationship is right for you.