On August 17th, a significant shift in the U.S. real estate landscape took place—but the world didn’t implode. As of this date, new rules are in effect that change how real estate agents are compensated in residential real estate transactions.

Whether you're a seasoned Buyer or stepping into the market for the first time, understanding these new guidelines is essential to navigating your home search confidently. Let’s break down what has changed, what remains the same, and how these updates affect you.

What Has Changed?

Prior to August 17th, agent compensation was—and still is—negotiable. However, the big change now requires that Buyers who wish to view a home listed by a realtor must first enter into a written agreement with their Buyer agent, outlining how much that agent will be compensated at closing.

These new rules do not affect Open Houses—you’re still free to attend an open house without signing anything. But if you want to tour a home privately, here's what you need to know:

Your Options: 3 Types of Buyer Agreements

Depending on your state, there are different forms of agreements you may need to sign before touring a home. In Vero Beach, Florida, where my team operates, the three most common agreements are:

1. Showing Agreement

   A more targeted agreement between you and your Buyer agent. It specifies the exact properties you’re interested in and outlines the fee charged by the Buyer broker if you purchase one of those homes.

2. Buyer Broker Agreement

   This is a broader contract, much like a listing agreement for Sellers. It states that your agent will search for properties that fit specific criteria (e.g., single-family homes in Indian River County) and outlines the compensation you agree to pay if you purchase a home that meets these criteria.

3. No Representation Agreement

   This agreement states that you’ve chosen not to have Buyer representation and will not compensate a Buyer agent. Without representation, you won’t receive counsel or advice from a REALTOR® during your home search.

Seller-Paid Compensation: What’s Different?

Here’s where it gets interesting: while Buyers now must agree to pay a Buyer Broker for their services, the Seller can still offer to cover some or all of the Buyer Agent’s compensation at closing, just as they did in the past.

The only difference is that the amount the Seller is offering to contribute is no longer published in the MLS (Multiple Listing Service). So, if you're interested in a home, you can still request that the Seller cover a percentage of your Buyer Agent’s compensation in your offer. If the Seller agrees, you may owe nothing or only need to cover the difference between the Seller's contribution and the amount outlined in your agreement with your Buyer broker.

How Does This Affect You as a Buyer?

A skilled Buyer Broker will ask the listing agent upfront whether the Seller is willing to cover any portion of the Buyer agent’s compensation. This way, you’ll know in advance what, if anything, you’re responsible for at closing.

Your Buyer Agent’s compensation is negotiable, just like any other aspect of the purchase agreement. With many Sellers eager to close deals in a slower market, it’s common for them to offer compensation to Buyer agents as part of the transaction. The key is working with an experienced agent who can negotiate effectively on your behalf.

Why Choosing the Right Buyer Agent Matters

At the end of the day, who you work with matters. When you're buying a home, having an agent who not only understands the new compensation rules but also adds value to your search can make a significant difference.

When I represent Buyers, they typically pay 92.5% of the asking price—a substantial saving. On the flip side, when I represent Sellers, I usually secure 96.5% of the asking price for them. That’s a 4% swing, which can add up to thousands of dollars depending on the price of the home.

What’s Next?

If you’re ready to start your home search and want to take full advantage of these new rules, be sure to hire a Buyer agent who understands the nuances of the market and is skilled at negotiating on your behalf.

For more information on how we help our Buyers find their dream homes while making the process as seamless as possible, CLICK HERE to receive a free copy of our Home Buyers Guide. Let us make our expertise your expertise in your home search.