Who Pays the Buyer's Agent Now?

Quick Answer

Buyer representation is a paid service, and since the 2024 NAR settlement the way it is paid is set in writing before you tour homes rather than advertised on a listing. Buyer agent compensation is negotiated and outlined in the Buyer Representation Agreement. In many transactions, the seller agrees to cover the buyer agent's commission. Ask your MHC agent for details specific to your situation. In Idaho, the request to the seller is made as a line item in the purchase and sale agreement and negotiated alongside price and terms — which is why the agreement, and the conversation about what your agent actually does for you, now come first.

What the settlement changed — and what it didn't

Before the settlement, a seller and their listing agent agreed on a total commission up front, part of which was offered to the buyer's agent and published in the MLS. A buyer's agent could tell a client on day one what the seller had already committed. Two things changed in 2024. Compensation offers can no longer be advertised in the MLS, and a buyer must sign a written representation agreement before an agent shows them any property. What did not change is the economics: the buyer's agent is still paid, the amount is still negotiable, and in many transactions the seller still agrees to cover it. Jerod's and Chase's experience is that much of what the settlement required was already in Idaho's state forms, so the process here shifted more than the outcome did. Same destination, different route.

Where the negotiation happens now

In Idaho, the request goes into the purchase and sale agreement as its own line item, negotiated at the same time as price, the title company, the escrow period and everything else in the offer. That makes it one more thing your buyer's agent negotiates on your behalf, and one more reason the strength of the whole offer matters (Episode 5 covers that). Until the seller agrees, the compensation arrangement is between you and your agent, as written in your agreement; your agent's job is to secure the seller's contribution as part of the deal, and to be clear with you from the start about what happens if they can't.

The agreement comes before the showing

Because the agreement is now required before any home is shown, the conversation about representation has moved to the very beginning. That is a good thing for buyers. It means an agent has to explain what they will do for you, how they are paid, and what the agreement covers, before you are standing in a kitchen you already love. Signing a representation agreement at an open house with an agent you know nothing about, who has not explained their value to you, is the mistake to avoid. Whoever ends up paying, you want the person representing you to be doing the job.

Why the conversation starts before the house

Chase's point from the lending side: buying a home starts as a financial decision and becomes an emotional one the moment you walk into a house. The best use of the new sequence is to make your list of needs, wants and deal-breakers, get in front of a lender, and settle your budget before you fall in love with anything. An agent who takes the agreement seriously will steer you there, not straight to the showing. The alternative, pushing hard on a house you are emotionally attached to and sorting out taxes, insurance and dues later, is how buyers end up stretched in a home they should not have bought.

What a buyer should look for in an agent

The settlement did not create good and bad agents, but it did make the difference easier to see, because every agent now has to put their value into words before the first showing. Look for the consultative approach: someone who explains the agreement in plain language and gives you time to ask questions, who wants you in front of a lender early, who will tell you when it is not the right time to buy, and who treats the relationship as the point rather than the transaction. My Home Connection works on repeat and referral business; an agent who shoehorns a client into the wrong house does not get either.

Questions to ask before you sign

Ask what the agent will do for you, step by step. Ask how they are paid, what the agreement covers, and how long it runs. Ask how they will handle compensation with the seller, and what happens if the seller does not agree. Ask whether they know the areas and the type of home you are looking for, including new construction if that is on your list. "Do you have a license?" is the floor, not the bar.

Frequently Asked Questions

Who pays the buyer's agent now?

Buyer agent compensation is negotiated and outlined in the Buyer Representation Agreement. In many transactions, the seller agrees to cover the buyer agent's commission. Ask your MHC agent for details specific to your situation. In Idaho the request to the seller is made in the purchase and sale agreement and negotiated with the rest of the offer.

What changed with the NAR settlement?

Buyer agent compensation can no longer be advertised in the MLS, and a buyer must sign a written representation agreement before an agent shows them a property. The amount remains negotiable and is handled through the transaction documents rather than a listing.

Do I have to sign an agreement before seeing homes?

Yes. A written Buyer Representation Agreement is required before an agent shows you any property. It sets out the scope of representation, how long it runs, and how compensation is handled, and you should have time to read it and ask questions before signing.

What should I ask an agent before signing a representation agreement?

What they will do for you, how they are paid and what the agreement covers, how they will handle compensation with the seller and what happens if the seller does not agree, and whether they know the areas and the kind of home you want.