Since August 2024, a Buyer Broker Agreement are now required for all buyers before they begin touring homes with a licensed real estate agent. Whether you’re a buyer or a seller, understanding what this means can help you navigate your transaction with confidence.
What Is a Buyer Broker Agreement?
A Buyer Broker Agreement is a written contract that outlines the working relationship between a buyer and their real estate agent. As of August 2024, this agreement must be signed before viewing any properties. It defines the agent’s fiduciary duties and—most importantly—establishes how the buyer agent’s commission will be paid.
Who Pays the Commission In A Buyer Broker Agreement?
One of the most common concerns is: “Who’s paying the buyer’s agent?”
Typically, commission ranges between 2.5% and 3% of the home’s purchase price, and in the vast majority of cases, the seller is still paying this commission—just like they always have.
In fact, based on my experience, 90% of transactions still follow the traditional model, where the seller offers a buyer-side commission as part of the sale. I’ve only had one situation where the seller declined to offer it, and we simply negotiated a slightly higher purchase price to account for the difference.
Sellers Who Are Also Buyers: Strategy Matters
If you’re selling your home and buying another, there’s a smart way to handle this shift.
➡️ Pay your buyer agent through your home sale.
➡️ Then, when you’re buying, negotiate on the purchase side depending on what the seller is offering.
This strategy keeps your out-of-pocket costs minimal and still ensures you’re fully represented in both transactions.
So, Has Much Changed?
Honestly? Not really.
This update is more about logistics and transparency. Buyers and agents are now crystal clear on the commission expectations before writing an offer. Plus, commissions are now more negotiable, offering flexibility based on market conditions.
But here’s the key point: In a slower market, where homes aren’t selling in days, sellers should strongly consider offering a buyer agent commission. Why? It increases your home’s visibility, brings in more offers, and keeps the deal flowing smoothly.
Final Thoughts
The Buyer Broker Agreement may be a new requirement, but it’s not disrupting the market—it’s clarifying it.
If you’re a home buyer or seller in Santa Clarita or the surrounding areas and have questions about how this change affects your move, I’m here to help. As a local expert, Broker Associate, and award-winning agent, I’ll guide you every step of the way.
📞 Call Jessica Ranuschio today to discuss your real estate goals! Click here
