Do you need a buyer's agent? What one does and the alternatives

What a buyer's agent usually does

• Finds and screens homes, including access to listings and showings
• Helps price an offer using recent comparable sales
• Writes the offer on the local contract forms and explains the terms
• Negotiates price, credits, repairs and deadlines
• Coordinates inspections, the appraisal, the lender and the title or escrow company
• Tracks deadlines for deposits, contingencies and closing

The value is highest where the market is fast, the contract is complex or you are new to the process.

What changed in 2024

NAR's settlement led to practice changes that took effect August 17, 2024. For buyers working with a REALTOR:

• You sign a written agreement before touring a home, whether the tour is in person or live and virtual. You do not need one just to talk with an agent at an open house or ask about their services.
• The agreement must state the agent's compensation in a specific, objective way, such as a flat fee, a percentage, an hourly rate or $0, not "whatever the seller offers".
• The agent cannot receive more from any source than the amount in your agreement.
• The agreement must say clearly that commissions are fully negotiable and not set by law.
• Sellers can still agree to pay your agent, but offers of compensation cannot be shared on the MLS. You can still ask the seller for concessions toward your closing costs.

When going without an agent can work

Buying without an agent is more manageable when:

• You already know the home, such as buying from a relative or your landlord
• You know the local market and recent prices well
• You are buying new construction and have independent advice on the builder's contract
• You hire a real estate attorney to handle the contract

It is harder when the market is competitive, the home is older or unusual, or you have never managed a contract with contingency deadlines.

Professionals you need either way

With or without an agent, a purchase usually involves a lender, an appraiser ordered through the lender, a home inspector you choose, a title or escrow company or attorney, and a homeowners insurance agent. If the home was built before 1978, federal rules require the seller to give you lead paint disclosures and an opportunity to evaluate.

How to decide

Make a list of the agent's jobs above and write who will do each one if not an agent. If your list has your name on every line and you have never done it before, interview two or three agents and compare what they offer with what they charge. The agreement is negotiable.