How are buyer's agents paid in 2024 and beyond?

Buyer's agents are now paid under a written buyer agency agreement that the buyer must sign before touring homes, following the 2024 NAR settlement. Compensation can be paid by the seller, paid by the buyer directly, written into the offer as a seller concession, or any combination. The total amount is fully negotiable, with no standard percentage.

What is a fiduciary duty in real estate?

A fiduciary duty is a legal obligation an agent owes to the client they represent, covering loyalty, confidentiality, full disclosure, obedience, reasonable care, and accounting. In practice, this means your agent must put your interests above their own, share material information about the property, and never share your bargaining position with the other side.

What is the difference between a Realtor and a real estate agent?

A Realtor is a licensed real estate agent who is also a member of the National Association of Realtors and agrees to follow NAR's code of ethics. Every Realtor is a real estate agent, but not every real estate agent is a Realtor. The day-to-day work is similar, but the ethical accountability differs.

Should you use the listing agent to buy the home?

No, using the listing agent is generally not recommended for first-time buyers, even though it is legal in most states under dual agency. One person cannot fully advocate for both sides on price and terms. Most first-time buyers are better served by their own agent who only represents them.

How do you get out of a buyer agency agreement if it is not working?

Review the buyer agency agreement before signing it, focusing on the term length, termination clause, and any protection period that would require you to pay the agent if you buy a home they introduced you to within a window after termination. A good agent will agree to a short initial term so both sides can evaluate fit.

How long does it take to buy a house from start to finish?

Buying a house typically takes 3 to 6 months from start to finish. The process has two phases: the search phase, which averages 2 to 3 months, and the closing phase, which takes 30 to 60 days once an offer is accepted. Before searching, budget 1 to 4 weeks to get mortgage pre-approval. Buyers in highly competitive markets should plan for up to 9 to 12 months total.

Guide

How Do You Choose a Real Estate Agent as a First-Time Buyer?

Last updated: June 17, 2026

A good buyer's agent does far more than unlock doors. They translate the market, write a competitive offer, hold the timeline together, and protect your interests when emotions run high. Here is how to find one and what to expect from the relationship.

What a buyer's agent actually does

A buyer's agent represents you - not the seller - through the transaction. Day to day, that means searching listings against your criteria, pulling comparable sales to suggest an offer price, writing the contract with the right contingencies, coordinating inspections, negotiating repairs or credits, and managing dozens of deadlines between contract and closing. They also serve as a neutral voice when a deal hits friction.

Understand how agents get paid (2024 changes)

Real estate compensation changed materially in August 2024. Buyers must now sign a written agreement with their agent before touring homes that explicitly states how the agent will be paid. Compensation can be offered by the seller, paid by you directly, written into your offer as a seller concession, or a combination. The total is fully negotiable, and there is no standard percentage.

Before signing anything, ask: How much will I owe you, in what scenarios, and for how long? The answer should be in writing and unambiguous.

Questions to ask a prospective agent

Treat it like hiring a contractor. Ask any agent you are considering:

How many transactions did you close last year, and how many were buyer-side?
What neighborhoods or price ranges do you work in most often?
Do you primarily represent buyers or sellers? Do you ever do both on the same deal?
Walk me through what happens between contract and closing.
How do you handle multiple-offer situations? Inspection negotiations?
What does your buyer agency agreement look like, and what is the term?
Can you share a few past client references?

Look for someone who explains things clearly, has real experience in your market, and treats you the same way after you sign as before.

Red flags to watch for

Be cautious if an agent pressures you to make an offer the same day, refuses to put compensation in writing, dismisses your questions about contingencies, regularly does dual agency, or will not share references. The agent who works hardest for your business before you sign is often the one who works hardest for you after.

Fit matters as much as resume

You will spend weeks or months in close contact with this person, often making the largest financial decision of your life. Communication style, responsiveness, and trust matter as much as transaction count. Pick someone whose calls you will actually want to take.

What to expect from the working relationship

A good agent sets expectations early: how often they will send listings, how quickly they respond to questions, who on their team handles what, and how decisions and documents will flow. They should never make you feel rushed - your interest and theirs should be aligned around finding the right home, not the next one on the calendar.

Frequently asked questions

No, a buyer's agent is not legally required, but most first-time buyers benefit from having one. Agents interpret comparable sales, write competitive offers, manage contingencies, coordinate inspections, and negotiate repairs. Buyers who skip an agent should hire a real estate attorney to review every contract.

Key takeaways

Buyers must sign a written buyer agency agreement before touring homes, following the August 2024 NAR settlement.
Agent compensation is fully negotiable and there is no standard percentage.
A fiduciary duty requires the agent to put your interests above their own, including loyalty, confidentiality, and full disclosure.
Dual agency, where one agent represents both buyer and seller, is legal in most states but creates conflicts of interest.