A buyer agreement is a written contract between you and your agent that spells out what the agent will do, how and how much they will be paid, how long it lasts and how to end it. Since August 2024, agents working with buyers sign one before touring homes. Every term, including compensation, is negotiable.
Why buyer agreements changed in 2024
Under practice changes that took effect in August 2024, agents working with buyers enter a written agreement before touring homes, and offers of compensation to buyer agents are no longer posted on the MLS. The goal is clarity: you know up front what you are agreeing to.
What the agreement should state
- Services: what your agent will do, from search and tours to offers, inspection negotiation and closing
- Compensation: the amount or rate, stated clearly, and how it will be paid
- Term: start and end dates
- Area or property type: whether it covers all homes or a defined area
- How to end it: the steps and any notice period
How compensation works now
The agreement says how your agent is paid. Payment can come from you, from the seller as part of the deal, or a mix, as agreed in writing. A seller may agree in the purchase contract to pay some of your costs or your agent's compensation, but nothing requires it. Commissions are not set by law and are fully negotiable.
Questions to ask before you sign
- What exactly will you do for me, and what will you not do?
- How much will you be paid, and who pays it in my situation?
- How long does this agreement last, and can we shorten it?
- Can it cover a single home or a short tour period first?
- How do I end it if it is not working?
Tips for buyers
- Read the whole agreement before your first tour.
- Ask for any change you want in writing.
- Keep a copy, and check the end date as you shop.
- Talk to a real estate attorney if you have legal questions.
See what a buyer's agent does and the first-time buyer guide.
Frequently asked questions
Do I have to sign a buyer agreement to tour a home?
Agents working with buyers enter a written agreement before touring under the 2024 practice changes. You can also tour open houses or contact a listing agent directly.
Is the commission in a buyer agreement negotiable?
Yes. Compensation is negotiable and is not set by law or by any association.
Can a buyer agreement be short?
Yes. The term is negotiable, and some agreements cover a single property or a short period.
Who pays the buyer's agent?
It depends on your agreement and the deal: you, the seller as part of the deal, or both, as agreed in writing.
About the author: Stephanie Muhlenfeld, PMP, REALTOR® with LPT Realty. Stephanie helps buyers and sellers across St. Louis City and St. Louis, St. Charles, Jefferson and Franklin Counties move with a plan, not pressure. (314) 597-7494.
LPT Realty (417) 813-1762