How Can a Real Estate Agent Help With Home Buying?

Thinking about buying your first home? The rules of the game have changed. The recent NAR settlement reshaped how buyers work with agents and how those agents get paid. If you’re planning to enter the market, you need to understand these changes before you start touring homes.

Before you step into a house-online or in person-you’ll sign a written agreement with your buyer’s agent.

This contract:

• Outlines your agent’s commission.

• Lists any extra fees.

• Defines how long the agreement lasts.

There’s no standard form. Some contracts are simple. Others are detailed and full of clauses. Read carefully before signing. Ask about termination terms and fees. If anything looks complex, check with a loan officer or attorney.

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The biggest shift is who funds buyer-agent commissions. You’re now responsible for budgeting this cost.

• A 2% fee on a $400,000 home = $8,000.

• The Consumer Federation of America suggests negotiating no more than 2% or asking for a flat fee.

• If you find homes online and only need help with negotiation and paperwork, push for a reduced fee.

Sellers may still contribute toward the buyer’s agent fee. If they do, and you’ve already saved for it, you can put the extra money toward your down payment or reserves.

Many loan programs allow this:

• Conforming conventional loans

• FHA loans (up to 6% toward closing costs)

• USDA loans (up to 6% toward closing costs)

• VA loans (ban lifted in August 2024, now allow buyer-paid commissions)

Takeaway: Build this fee into your budget. Do not assume it’s covered by the seller.

Your agent is your partner in one of the largest financial decisions of your life. Pick carefully.

• Experience: At least 2 years. Full-time agents average 12 deals a year.

• Specialization: An agent familiar with your price range and property type.

• Local knowledge: Agents who know your area well.

Reputation: Well-respected agents can help your offers stand out.

1. Are you full-time or part-time?
2. How do you prefer to communicate?
3. Do you have a team or work solo?You want someone responsive, available evenings and weekends, and aligned with how you prefer to communicate.

When you sign a Buyer Agency Agreement, you become a client, not just a customer. That status gives you protections called fiduciary duties:

• Loyalty: They put your interests first.

• Advice: They can critique properties and guide your offer strategy.

• Disclosure: They must share material information, like competing offers.

• Negotiation: They help you secure better terms.

In dual agency, one agent represents both buyer and seller. That agent must act as a neutral middleman, which limits how much they can advocate for you. Dual agency is illegal in some states but still allowed in others.

Designated agency (two agents in the same brokerage representing both sides) is slightly better but still creates risk of shared information.

Best practice: Choose exclusive buyer representation for full loyalty.

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Buyer agency agreements vary:

• Exclusive: You commit to one agent in a set area for 6-12 months. This usually secures the agent’s full attention.

• Non-exclusive: You can work with multiple agents. Often used as a trial, but agents may be less committed.

Tip: Avoid overlapping exclusive agreements. Be cautious of vague area descriptions.

Strong preparation makes you a stronger buyer.

• Get pre-approved: Shows sellers you’re serious.

• Budget for extras: Down payment, closing costs, inspections, insurance, moving, and agent fees.

• Know closing costs: Legal fees (around $2,000), transfer taxes, adjustments, and more.

• Talk to a loan officer: Factor in agent fees and check if seller contributions are possible.

Your offer is more than price.

• Use contingencies: Financing, inspection, appraisal, or home-sale contingencies protect you.

• Adapt in competition: Shorten inspection periods, use escalation clauses, raise earnest money, or offer quicker closings.

• Negotiate terms beyond price: Closing date, included items, or financing method.

• Know review timelines: In some states, an offer isn’t binding until attorney review. Deadlines are short, so be ready.