If you are planning to buy a home, you may notice something different the first time you ask an agent to schedule showings. Many buyers are now asked to sign a written agreement before they tour a home with an agent, including live virtual tours. This is meant to make the working relationship clear from the start, including what services you will receive and how the agent will be paid.
A simple way to think about it is this: Buyer-broker agreements are designed to reduce confusion. They put the expectations in writing before you start viewing homes, writing offers, or negotiating repairs, so you understand your agent’s role and the compensation terms that go with that work.
What the agreement is, and why it shows up early
A written buyer agreement is an agreement between a buyer and a real estate professional that outlines the services the professional will provide and what they will be paid for those services. The timing is what surprises people. Many buyers expect paperwork closer to the offer stage, but the current standard in many markets is that the agreement is signed before touring homes with an agent.
It also helps to understand what does not require an agreement. If you are visiting an open house on your own or you are simply talking with an agent about their services, you typically do not need to sign a buyer agreement just to have that conversation.
What “compensation can work” actually means
The biggest buyer question is simple: “Does this mean I have to pay my agent out of pocket?” The answer is not necessarily, but it does mean the conversation happens earlier and more clearly than it did in the past.
Here are common ways compensation can work in real life.
First, the buyer may agree to pay their agent directly, based on the terms of the written agreement. This could be a percentage, a flat fee, an hourly rate, or even zero, depending on what is negotiated and what services are being provided.
Second, the buyer can request that the seller contribute to the buyer’s agent compensation as part of the overall negotiation. Even though offers of compensation are no longer displayed on MLS platforms, sellers can still offer compensation outside the MLS and those terms can be communicated through other channels.
Third, a buyer can negotiate a seller concession that helps cover buyer costs, which may free up cash the buyer would otherwise use for representation or other closing expenses. Concessions are different from an offer of compensation, but the practical effect can be similar for a buyer’s budget.
The most important point is that compensation remains negotiable. Fees are not set by law, and buyers should feel empowered to negotiate the services, the length of the agreement, and the compensation terms so the agreement matches what they want and need.
What to look for before you sign
Most confusion comes from signing quickly without reading the details. You should understand five areas before you agree to anything.
Start with the services. Some agreements describe full representation from search through closing, while others describe limited services. Make sure it matches what you want, especially if you are early in the process and still deciding where and when to buy.
Next, look at the term and the location. Many agreements have a start date and end date, and they may apply to specific neighborhoods, price ranges, or property types. If your search is still wide, a shorter term and a clearer scope often feels more comfortable for buyers.
Then review exclusivity and touring expectations. Some agreements mean you work only with that agent during the term, while others allow more flexibility. Your agent should explain what “working with” them means in your market and how showings will be handled.
After that, read the compensation section carefully. The compensation must be clearly defined and should not be open ended or written as a range. You should also look for language stating that the agent cannot receive compensation from any source that exceeds what you agreed to in the written agreement.
Finally, look at how to change or exit the agreement. Many agreements allow changes if both parties agree, and they may include a clear process for cancellation. You should know the exit terms before you sign, not after you feel stuck.
What to ask before touring a home
Before you schedule your first private showing, ask questions that help you understand both value and cost. The goal is not to argue about commissions. The goal is to make sure you are paying for the level of help you actually want.
Ask what services are included at your price point, and ask how your agent handles strategy, negotiation, inspections, repairs, and contract deadlines.
Ask how the compensation works if a seller is not offering anything toward buyer representation, and ask how your agent approaches negotiating that piece as part of an offer.
Ask whether the agreement can be limited in term or scope while you get started, and ask what happens if you decide to pause your search or switch directions.
Ask how conflicts of interest are handled, including what happens if you end up interested in a property where the listing is held by the same brokerage.
Ask what it looks like to end the agreement if the fit is not right, and ask for that explanation in plain language.
When buyers ask these questions up front, the rest of the process usually feels smoother. It becomes easier to tour with confidence because you know what you are getting, what it costs, and how decisions will be handled when the pressure rises.
Why this matters for buyers who want to stay in control
Home buying already includes enough uncertainty. The purpose of a clear written agreement is to make one part of the process more predictable. When you understand the relationship and the compensation structure before you tour, you can compare homes based on the right criteria, write stronger offers when it is time, and avoid last minute surprises about costs and responsibilities.
If you are unsure, slow down and read the document carefully, and do not be afraid to negotiate terms so they fit your situation. Buyer-broker agreements should feel like clarity, not pressure, and you should only sign something that reflects what you and your agent have actually agreed to.
For context, many of these changes stem from practice updates tied to the National Association of REALTORS® settlement process, including the rule that written agreements are required before touring for many MLS-based transactions and the fact that offers of compensation are not communicated through MLS listings.
