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Hole 08 · Front Nine — Get Ready

Agents & Representation

A buyer's agent is legally required to work in your interest, not the seller's, and in most cases costs you nothing directly. This hole explains representation agreements, how agent compensation actually works after recent industry changes, and what to ask before you sign with anyone.

7 min read · Free, no signup

Written by Isaac Ortiz · Real Estate Broker · Compass | NWMLS #146754

A buyer's agent's legal duty is to you, not the seller

Washington law (RCW 18.86) sets what a buyer's agent owes you: loyalty — advocating for your interests, not the seller's — plus disclosure of material facts, reasonable care and skill, and accounting for money they handle for you. Those are statutory duties, not just professional courtesy, and they apply whether or not you pay the agent directly.

  • These statutory duties are owed to you specifically, not to the transaction in general.
  • A seller's agent (listing agent) owes those same duties to the seller, not you.
  • Ask directly who represents you before you tour with anyone.

How agent compensation actually works after the 2024 settlement

The National Association of Realtors (NAR) settlement that took effect in August 2024 changed compensation nationwide: a buyer's agent's pay is no longer automatically built into a listing and must be spelled out in a written buyer-broker agreement before touring. Many sellers still cover it through concessions, but it's negotiated, not guaranteed — ask and get it in writing.

  • Buyer-agent compensation is now a separately negotiated term, not an assumed listing default.
  • Seller concessions can still fund it — but confirm that with your agent, don't assume it.
  • Total effective commission in most transactions still runs a negotiated range, split between listing and buyer sides.

Before you sign a buyer-agency agreement

A buyer-broker agreement can be exclusive or non-exclusive, and it can cover one showing or months of representation. Ask what it covers, how long it lasts, what compensation the agent expects and from whom, and how you can end it if the relationship isn't working. None of this is standard boilerplate — every term is negotiable before you sign.

  • Scope: one home, a set of showings, or an exclusive term — know which you're signing.
  • Duration: shorter terms let you reassess without being locked in.
  • Exit terms: confirm how and when you can end the agreement before you need to.

Representation isn't free even when it doesn't cost you directly

Even when a seller covers your agent's pay through concessions, that money is still part of the deal's economics — not a freebie outside it. The honest trade-off: representation buys a legally bound advocate through negotiation, inspection, and closing, at a cost that's now explicit and negotiable instead of hidden in the listing.

  • "Free" representation still runs through the deal's economics somewhere.
  • The honest trade-off: a legally bound advocate, at a cost you can now see and negotiate.
  • Isaac Ortiz is a Washington-licensed broker (NWMLS #146754) — see his byline above for verified credential context.

Mastery check

Prove it out before you move on.

Caddie

Before you play through — quick read of the green:

4 quick questions. Get all but one right and this hole is marked played. Unlimited retries — there's no penalty for missing one.

Question 1 of 4

Who does a buyer's agent have a legal duty to represent?

Question 2 of 4

What changed for buyer-agent compensation after the August 2024 NAR settlement?

Question 3 of 4

Before signing a buyer-broker agreement, what should you ask about?

Question 4 of 4

Why is representation still worth evaluating even if a seller ends up covering your agent's pay?

Still stuck? Ask the Caddie.

Hole 7: Buying PowerHole 9: Market Fundamentals