What is a buyer agent fee?

A buyer's agent or in our case, an exclusive buyer’s agent, is a real estate agent who represents the interests of the buyer in a real estate transaction.

Who pays the buyer agent fee? 

• First, all real estate agent fees are negotiable
• Sellers have the option to offer a seller subsidy to buyer agents
• Buyers can compensate their agents
• A specific amount of compensation should be included on a buyer brokerage agreement

On August 17th, 2024, new real estate rules went into effect across the United States.

How will this impact the buyer agents commission?

• Buyer agent commissions or offers of compensation will no longer be shown in the Multiple Listing Service.
• Sellers can offer buyer agent compensation but this option is offered off-MLS
• Seller compensation for buyer agents can be shown on listing brokerage websites and communicated via email to buyer agents.

In a traditional real estate brokerage, real estate agents work for buyers and sellers sometimes in the same transaction. 

Key points

Real estate agents must work under the supervision of a broker 

Traditional real estate agents can work for buyers and sellers

Real estate agents can be listing agents, buyer agents and/or members of a team working under the supervision of a real estate broker

A real estate broker can work independently for buyers and sellers and/or supervise agents at their brokerage.

Key points

A real estate broker is responsible for the agents who work under their supervision

Associate brokers and managing brokers work under the supervision of a broker

A Realtor is a real estate agent or broker who is a member of the National Association of Realtors or NAR. This is a paid membership and the designation requires a higher ethical standard of conduct from a real estate agent. 

What is a buyer’s agent?

A buyer’s agent is a real estate agent at a traditional real estate brokerage who works with a buyer in a real estate transaction. 

Key points

Buyer agents can be dual agents, working with both sellers and buyers

Buyer agents can be designated agents, working with a buyer who is purchasing one of the brokerage listings

What is an exclusive buyer’s agent? 

An exclusive buyers agent is a real estate agent who only works for home buyers. These agents work with brokerages committed to serving home buyers in every real estate transaction. 

Key points

An exclusive buyer brokerage does not represent a home seller

An exclusive buyer agent or broker specializes in the buyer’s side of the transaction

Exclusive buyer agents and brokers see the conflict of interest in the traditional real estate business model.

We commend exclusive buyer brokers who really are trying to offer good value to consumers without the kind of conflicts of interest that exists throughout the rest of the industry. So, more power to exclusive buyer brokers. Steve Brobeck, Consumer Federation of America

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Buyers and Sellers must sign a consent for dual agency form in order for dual or designated agency to occur.

Exclusive buyer agents and brokers never practice dual or designated agency.

Key points

Dual agency is one agent working for the seller and the buyer in a real estate transaction

Designated agency is one agent at a brokerage working for the seller and one agent from the same brokerage working for the buyer. 

In designated agency, the brokerage first agrees to serve the seller's best interest. 

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Two lawyers from the same firm would never represent clients on opposing sides of a case. In fact, they would likely be disbarred due to the conflict of interest.

However, this type of representation happens every day in real estate.

Top things an exclusive buyer’s agent offers buyer clients

Listening to you: Your agent should hear you and accommodate your needs. Where you start to look for a home may not be where you end up. You may discover the house style you thought you’d like doesn’t really work for you. Or after touring several properties, you may realize you want more privacy in a backyard. And so on. 

Buying a home is a process. Your buyer’s agent should tune in to your needs. Listening is a top skill your exclusive buyer agent should possess. Your exclusive buyer's agent should be responsive to texts, emails and phone calls.

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Explaining the entire process from start to finish: Your buyer’s agent should walk you through each step from house tours to the settlement table and beyond. We teach a free online home buying class several times a year. Check our website or contact us to learn more about the home buying process.

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Negotiating the purchase price: Negotiation is a skill, fine tuned through experience. As a home buyer, you need an experienced buyer's agent who understands the market, evaluates the condition of a property, the number of competing offers and the needs of the home seller. There are many factors in play when deciding on an offer price including:

1. Will you include a home inspection with the right to negotiate and right to cancel?
2. Do you have a home sale contingency?
3. Does the seller need a post occupancy?
4. Is the home being sold as-is?
5. Is the seller offering a home warranty?
6. Are the appliances, HVAC and water heater in good condition?

The answers to these questions and more will factor into the offer price.

‍A buyer's agent will negotiate the purchase price on your behalf, helping you to get the best deal possible. They will provide a comparative market analysis to show you what similar properties sold for in the past 6 months. Evaluating the condition of other similar properties helps you determine the value of a home.

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Writing the contract offer: A buyer’s agent will review the details of the contract, explain all contingencies, write all pertinent information on the contract and send it to you for electronic signature. This can take several hours as it involves coordinating with the lender, settlement office and meeting all your expectations and concerns regarding the offer. Remember, you have assembled Team (your name) including your exclusive buyer's agent, lender, settlement attorney, home inspector, radon inspector, well & septic inspector and others. The members of your team should be in sync and coordinate offers, inspections and all communications with the listing brokerage.

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Coordinating the closing process: A buyer's agent will help you navigate the closing process, including handling paperwork and communicating with other parties involved in the transaction. If you are buying a home in an HOA, co-op or condo association, there will be documents to review. In addition, your buyer’s agent will assist you as you review the disclosures from the seller, the home inspection report and other documents regarding the home. 

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Providing market expertise: A buyer's agent can provide you with valuable insights into the local real estate market and help you make informed decisions about your purchase. This is particularly important as you evaluate the location, lot and property to determine your offer price. 

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How can we help?

The exclusive buyer agents at HomeBuyer Brokerage specialize in serving home buyers. Please reach out with questions at info@homebuyerbrokerage.com.