Buyer Agent Commissions in Brief
- In many resale transactions, the seller's brokerage shares commission with the buyer's brokerage.
- Commissions are negotiable.
- Buyers may have direct payment obligations in some situations.
- A written buyer representation agreement explains how compensation works.
How Compensation Usually Works
When a seller lists a home, they agree to a total commission with their brokerage. A portion of that is typically offered to the brokerage that represents the buyer. In many cases, this covers the buyer's representation.
When Buyers May Pay
- If the compensation offered is lower than what's in your agreement
- When purchasing a private sale or some new builds
- If a specific fee is agreed for additional services
Your Buyer Representation Agreement
Before we begin working together, we'll review a written agreement that explains my services, how compensation is handled, the agreement's term, and any amounts you might be responsible for.
Transparency Matters
I believe buyers should understand exactly how their representative is paid and should never be surprised at closing. If you have questions about compensation, I'm always happy to explain them clearly.
New Construction and Private Sales
When buying from a builder, check whether the builder pays compensation to buyer agents, and register your agent on your first visit to a show home if required. Private sales may not include any compensation for a buyer's agent, so it's important to discuss this before viewing.
Why Representation Is Valuable
A buyer's agent works in your best interest, helping with pricing, negotiation, conditions, and paperwork. Understanding how that service is paid for helps you make an informed choice.
