How buyer's agents actually work, especially after the 2024 NAR settlement

For decades, the standard structure was that the seller paid both the listing agent and the buyer's agent, and the buyer's agent's compensation was specified in the listing agreement and the MLS. That structure ended with the 2024 NAR settlement, which took effect in August of that year.1 The buyer's agent role itself didn't disappear (most buyers still work with one) but the compensation arrangement changed shape, and the paperwork at the start of the relationship now looks materially different.

What a buyer's agent actually does

A buyer's agent represents the buyer in the transaction. The work tends to fall into a few overlapping streams: search support (sourcing properties that fit the buyer's criteria, sometimes including off-market opportunities), tour coordination, comp analysis to inform offer pricing, offer drafting and negotiation, contingency and timeline management once under contract, and coordination with the lender, inspector, appraiser, and closing professional through to keys-in-hand.

Some of this overlaps with what a buyer could do alone (Zillow shows the same listings the agent sees in many markets) but the overlap shrinks as the transaction gets closer to closing. Negotiating an inspection response, evaluating a low appraisal, or moving a difficult deal toward a clean close is where experienced buyer's agents earn their fee. The 2024 NAR data continues to show that the strong majority of buyers work with an agent, even with more information available online than ever before.3

The buyer-broker agreement

The biggest practical change post-settlement is that buyers must now sign a written buyer-broker agreement with their agent before the agent can show them any MLS-listed property. The agreement specifies the scope of representation, the duration, and the compensation, including how much the agent will be paid and from which source.1

The agreement is negotiable. Compensation can be a percentage of the purchase price, a flat fee, or an hourly rate. It can be paid by the seller (when the seller offers buyer-side compensation in the listing), paid directly by the buyer, or split. The duration of exclusivity varies (some agreements are property-specific, others cover a date range), and many agreements include termination provisions if the relationship isn't working.

This is paperwork worth reading carefully before signing. The buyer-broker agreement is a contract that obligates the buyer to pay the agent under specific conditions, and the language varies.

How buyer-side commission actually works now

Sellers can still offer buyer-side commission as part of their listing strategy, and many do, because doing so widens the buyer pool. But that offer is now a separate negotiation from the listing agreement, and it can no longer appear in the MLS, buyer's agents have to look it up through other channels (often the listing agent directly).

Three patterns are common in the post-settlement market:

The first is the seller offers buyer-side commission as part of the listing terms, and the buyer-broker agreement specifies that the buyer's compensation comes from that pool. From the buyer's perspective, this looks similar to the pre-settlement structure: the seller's listing terms cover the buyer-agent fee, and the buyer pays nothing directly.

The second is the seller doesn't offer buyer-side compensation, and the buyer-broker agreement specifies that the buyer pays directly. In this scenario, the buyer's offer to the seller can include a request that the seller cover the buyer-agent compensation as a closing concession. Whether the seller agrees depends on negotiation.

The third is a hybrid where the seller offers some buyer-side compensation but less than the buyer-broker agreement specifies, and the buyer covers the gap directly or negotiates seller credits to do so.

The math is the same in each case (someone is paying the buyer's agent) but the source and the negotiation are now explicit.

How to evaluate a buyer's agent

The honest answer is that experience and local-market knowledge matter more than national-brand affiliation. The questions worth asking before signing a buyer-broker agreement run roughly along these lines: How long have you worked in this market? How many transactions did you close last year, and how many were in the price range I'm looking at? Can you describe how you typically handle a low appraisal? What does your inspection-response process look like? Who else on your team would I be working with? How do you bill, and what does the agreement let me change?

The reference data that's useful here is the agent's actual transaction history, which is often available through MLS records or a state license-board lookup. A first-time buyer benefits from working with someone who has navigated the under-contract stage many times. A complex transaction (luxury, investment, multifamily, new construction) benefits from specialist experience.2

A reasonable frame

The 2024 NAR settlement made the buyer-agent compensation conversation explicit. That's mostly a good thing: it gives buyers the chance to negotiate, to pick a structure that fits their situation, and to understand what they're paying for. The downside is that the conversation happens at the start of the relationship rather than getting buried in the closing math, which can feel awkward. A common posture, broadly speaking, is to treat the buyer-broker agreement the same way you'd treat any other professional-services contract: read the language, understand the obligations, and negotiate the terms that don't fit.