Representing Buyers — The Buyer's Agent

Since the 1990s, buyer representation has grown dramatically. Buyers now routinely have their own agent working in their interest.

Buyer agency agreement:

Written contract between buyer and broker

Exclusive or non-exclusive

Defines compensation, term, and property type

Legally binds broker to fiduciary duties to buyer

How buyer's agents are compensated:

Traditionally: Co-op commission from listing broker paid at closing

Post-2024 NAR settlement: Buyer's agent compensation must be negotiated in writing with buyer upfront; cannot be advertised on MLS

What a buyer's agent does:

Help identify properties meeting buyer's needs

Provide CMAs to determine fair offer price

Draft and negotiate the offer

Coordinate inspections, appraisals, and closing

Advise on contingencies and contract terms

CMA (Comparative Market Analysis): Agent's estimate of market value based on recent comparable sales. Not an appraisal — but essential for making competitive offers.

Reference:

Wikipedia: Real Estate Broker

https://en.wikipedia.org/wiki/Real_estate_broker