What Is a Buyer's Agent and Do I Really Need One?

What is a buyer's agent? | Do you really need one? | Who pays the buyer's agent? | Is a buyer agency agreement required? | How to find a buyer's agent | FAQs

A buyer's agent acts as your advocate and guide during the process of purchasing a home — including showing you properties that match your criteria, researching properties you're interested in so you can make an informed purchase decision, helping you submit a competitive offer, negotiating contract terms on your behalf, and guiding the transaction to a successful close. 

Although most agents alternate between representing buyers and sellers, some serve exclusively as buyer's agents.

While you don't technically need a buyer's agent to purchase a home, using one can work to your advantage — especially if you don't have a prior relationship with the home seller.

Here's what you need to know about working with a buyer's agent, including who pays their fees and how to find one. 

What is a buyer's agent?

A buyer's agent (also called a selling agent) is a real estate professional who represents the home buyer in a real estate transaction. They work opposite of a listing agent who represents the seller. 

Some real estate agents work as buyer's agents exclusively. Others work as either a buyer's agent or listing agent, depending on the transaction, while some prefer to work only with sellers. 

What does a buyer's agent do?

Buyer's agents work with their clients from the initial interview and house showing up through closing day. 

Here's what a buyer's agent usually handles in a real estate transaction.

Walk you through the home buying process

For first-time home buyers, a good agent won't immediately take you to see homes without first walking you through the buying process. 

It's smart to get a complete overview of the home buying process at your initial meeting, so you know exactly what to expect from the process. A buyer's agent can walk you through: 

• The state of your local real estate market and what to expect as a buyer
• Offer and negotiation tactics that could strengthen your position as a buyer
• The various steps in the home-buying process, including your responsibilities at each stage
• How to prepare for potential hiccups that could arise during critical periods like the home inspection and appraisal
• The paperwork requirements, including any documents you should be prepared to submit within a certain time frame 

Recommend lenders who can get you pre-approved

Buyer's agents will usually recommend getting pre-approved with a lender before you tour homes. This helps you determine how much house you can comfortably afford based on prevailing interest rates and a preliminary review of your finances.

Having a mortgage pre-approval letter in hand also gives you a competitive edge, since it shows sellers that you're a serious buyer with the financial capacity to purchase a home up to a given dollar amount. 

Some agents may even require a pre-approval letter or other proof of funds before you can tour a seller's property. 

Getting pre-approved is fast, easy, and free, and you don't need to commit to the lender who furnishes the letter. You're free to continue shopping around for better rates and terms even after you submit an offer.

Act as an advocate during your home search 

A good buyer's agent does much more than just open doors. They'll also:

• Point out a home's key selling points and drawbacks, including possible repair and deferred maintenance issues
• Facilitate requests for additional information that may impact your home buying decision, such as HOA fees, utility costs, copies of seller's disclosures, etc.
• Be a source of knowledge about the area, including the local school district, neighborhood amenities, tax rates, utility companies, etc.
• Alert you to anything that could impact your future home value, such as planned commercial or residential developments, changes to zoning laws, tax increases, etc.

Submit and negotiate offers on your behalf

When you're ready to submit an offer, your agent can help you determine an offer price by running a comparative market analysis (CMA). Rather than a mere estimate of a home's fair market value, a CMA will show you a competitive offer range based on similar homes that have recently sold or been listed in the area. 

Your agent should also advise you on what terms and contingencies to include in your offer. Standard contingencies include home inspection, clean title, financing, and appraisal. These allow you to back out of the contract or renegotiate if a major issue is discovered — but too many contingencies can scare off sellers. 

It's your agent's job to help you strike a balance between protecting your interests and appealing to sellers. To offset contingencies, your agent may advise strategies such as upping your earnest money deposit, shortening the inspection period, or even waiving certain contingencies to make your offer more competitive.

Connect you with other real estate professionals

Buying or selling a house involves a lot of different parties, including inspectors, appraisers, attorneys, title companies, insurance brokers, and lenders. 

Buyer's agents can refer you to professionals they'd recommend based on past experience. These connections can save you time and stress, as you won't need to search for help on your own. Agents aren't allowed to accept kickbacks for these types of referrals either, so you can generally trust their recommendations. 

Your agent's recommendations might not always be the best or cheapest, though, so you're free to shop around for alternatives. Getting multiple quotes is especially important when choosing a lender, since different lenders may be able to offer you a more competitive interest rate or a better deal on closing costs.

Keeping the deal on track through closing

After your offer is accepted, the buyer's agent work is just getting started. The agent is usually responsible for handling the following tasks: 

• Making sure you deposit your earnest money promptly into the escrow account 
• Coordinating and attending home inspections
• Negotiating any additional pricing adjustments or concessions needed following inspection and appraisal outcomes
• Acting as a liaison between you and the various parties involved in the transaction, including the seller, lender, and title and escrow company
• Ensuring that all contract stipulations are met within the specified closing timeframe
• Coordinating the closing process with the lender and title company
• Attending the final walk-through to ensure the home's condition is as expected

Do you need a buyer's agent?

Technically, buyers aren't required to use an agent to purchase a home, but most still do. 

Data from the National Association of Realtors (NAR) shows that 88% of buyers used an agent to purchase a home in 2024, while only 5% bought directly from the home seller — usually instances where they already knew the homeowner.[1]

While survey research shows mixed opinions about the value a realtor brings to the table, 75% of Americans agree it's important to have an agent represent them during the home buying process.[2]

According to buyers, the most useful services their agents provide are:

• Negotiating with sellers (56%)
• Assisting with paperwork (53%)
• Finding the right home (52%)

Perhaps the greatest risk of foregoing an agent is simply the lack of familiarity with the process. 

Recently, a listing agent took to Reddit to share their experience working with an unrepresented buyer. Between costly negotiation mistakes, failing to ask for credits on major repair items, and overpaying for insurance due to a missed deadline, the realtor estimates the buyer lost out on far more than the 2.5% a buyer's agent would have cost them — especially since the seller was prepared to pay the commission. 

"As a first-time homebuyer, you don't know what you don't know," said another realtor on Reddit with more than 18 years of experience representing buyers. "My knowledge has been honed through hundreds of transactions, hundreds of hours of continuing education, and at least a hundred failed deals over the years." 

⚡️ Get a better agent at a better rate. Compare agents from leading local brokerages, earn cash back savings on your home purchase, and get one-on-one support from the highest-rated real estate company on Trustpilot.

Alternatives to using a buyer's agent

In certain situations, such as when you already know the seller or have a realtor friend willing to advise you, hiring a buyer's agent may not be necessary. 

In those instances, you can work directly with the listing agent — or homeowner, if they are selling without a realtor — preferably with the assistance of an attorney or transaction coordinator to assist with the contract and closing.

Represent yourself

One option for bypassing a buyer's agent is to represent yourself and deal directly with the listing agent — but make no mistake, the listing agent works for the seller.

"They have to be honest with you, but they don't have to be fair," cautions an agent on Reddit with more than 18 years of experience representing buyers. "They can give you the facts that must be disclosed…but they CANNOT give you advice or negotiation help."

Most realtors hone their real estate knowledge and negotiation skills under the supervision of an experienced broker who can guide them through situations they've never encountered before. Your own home purchase probably isn't where you want to start your real estate training.

So unless you're familiar with the process and comfortable negotiating the specifics of a real estate deal, you probably don't want to go it alone. 

Work with a transaction coordinator

If you're fairly certain of your ability to represent yourself and don't mind having the listing agent draw up the contract, you can simply work with the listing agent's transaction coordinator, whose job it is to manage the paperwork and stay on top of deadlines to ensure a smooth closing.

A transaction coordinator won't offer any legal or real estate advice. They'll simply provide a list of needed documents and deadlines and verify their accuracy once they're submitted. It's up to you to ensure that you're upholding your contractual obligations as a buyer.

"There are at least 50 plus forms in a standard real estate transaction and not knowing what you are doing can really open you up to legal trouble," cautions Eileen O'Reilly, who runs a leading real estate agency in Oregon. 

In addition to paperwork, you'll need to stay on top of tight deadlines for things like depositing earnest money, ordering inspections and surveys, making repair requests, completing addenda for any changes to the original contract, submitting proof of insurance, obtaining financing, etc. 

Hire a real estate lawyer

If you want the assurance that someone is in your corner, another option is to hire a real estate lawyer to review the contract.

Just keep in mind that while lawyers can help ensure that all the contract is air tight, there are a lot of things a buyer's agent does that a lawyer won't do, including:

• Attend showings, inspections and final walkthroughs
• Help determine fair market value and advice on an offer price
• Negotiate offers, concessions, or repair credits
• Coordinate with your loan officer to ensure your mortgage approval is progressing
• Stay on top of inspection, appraisal, and other contingency deadlines
• Be available outside of business hours

That said, a lawyer and transaction coordinator may be perfectly suitable in situations where you already know the seller or are working directly with a homeowner who is also unrepresented.

Once the purchase details are agreed to, an attorney can ensure that the contract is drawn up fairly and accurately. You can then work with a transaction coordinator to oversee the closing. Some lawyers may also provide closing services as part of their fee.

Who pays the buyer's agent commission?

Historically, home sellers covered the commission for both the listing agent and the agent representing the buyer. A listing agent would advise the seller on a competitive commission amount to offer, typically in the range of 2.5–3%, and this commission would be advertised to buyer's agents on the MLS — a practice that, at least in theory, could influence which properties agents showed their buyers.

However, as a result of a recent lawsuit against the National Association of Realtors, buyers and sellers now must negotiate commissions separately with their agents.[3] Seller's agents can no longer determine the buyer's agent commission or advertise it in the MLS. 

The effects of these changes are still unfolding, but could theoretically result in significant shifts in how agent commissions are paid.

For one, buyers and sellers may now encounter more complex negotiations over who will cover agent fees, since it's no longer a given that they'll be paid by the seller. 

"Sellers may increasingly opt not to cover buyer’s agent commissions, which could lead to buyers taking on more responsibility for those costs," says Montana-based realtor Lisa Corino. 

For buyers already struggling to afford an initial down payment and closing costs, coming up with an additional 2.5–3% to pay their agent out of pocket could be a deal breaker. 

A recent survey from Clever Real Estate found that 91% of home shoppers would change their buying strategy if they had to pay their agent's commission,[4] including:

• Negotiating for a lower home price 
• Asking the sellers to offset the commission costs in another way
• Lowering their home buying budget

"If buyers are required to pay their own agent fees, then sellers will need to adjust their pricing, or offer other incentives to remain competitive" says Corino. 

For now, most sellers continue to offer a competitive buyer's agent commission either directly through the home sale proceeds or indirectly through closing cost credits.

However, as the market continues to adjust, Corino anticipates "more downward pressure on commission rates overall, as buyers and sellers both become more selective about what they’re willing to pay."

Is a buyer agency agreement required? 

In addition to changing rules around agent compensation, the recent NAR settlement means that buyers and their agents must now sign a written agreement specifying the agent's compensation and services provided before touring homes.[5]

Understandably, buyers may be hesitant to lock themselves into a formal agreement with an agent simply to see a house. However, the buyer representation agreement is actually intended to promote more transparency between agents and their clients. 

Previously, buyers' agents could claim that it was the seller who paid their commission, implying that their services were free to buyers. However, this wasn't really the case. 

Sellers only "paid" in the sense that realtor fees were distributed from the proceeds at closing rather than charged to buyers and sellers upfront. Buyers still covered the costs indirectly through their home's purchase price.

Because a buyer's agency agreement must now be signed upfront, buyers have much more room to negotiate, including:

• The compensation the agent will be paid — while 2.5–3% has been the norm, the new landscape means that agents must be more willing to negotiate to stay competitive
• Whether the agreement is exclusive or non-exclusive, meaning you're free to look at other houses with other agents
• The length and terms of the contract — whether it's for a day, a month, a specific area, or a single house
• The services the agent will provide

Most buyers (including 67% of first-time buyers) interview only one agent before making the decision to hire them.[6] However, given the stakes, buyers may want to exercise more discretion when choosing an agent.

"It's easy to use the Zillow agent that responds to your 'Request Showing' button click or your former college buddy that switched to real estate two years ago," says realtor Bo Bromhal via Reddit. "But the conversation for buyers should quickly shift to, 'If I'm going to sign [a buyer's agency agreement], and bear responsibility for possibly paying my buyer's agent, I better make sure I've got a good one.'" 

How to find a buyer's agent

Look for a top-rated company that offers commission savings

Even before the NAR settlement went into effect, there were a number of reputable real estate companies offering lower commission rates to consumers. 

Some of the better-known options include discount brokerages like Redfin and agent finding services like Clever Real Estate, which negotiate commission savings with thousands of top-rated agents from across the country. 

Connecting with an agent through any of these options is free, and there's no obligation to work with the realtor you're matched up with. So don’t be afraid to compare different agents and see who can offer you the best value in terms of experience, service, and commission rate.

Top agent finding services

Ask for referrals

You can also ask family, friends, neighbors, or co-workers for realtor referrals. Getting a referral from someone you know and trust can lead to a good match. 

However, there's also no guarantee the agent will be a good fit for your particular situation — especially if they don't usually work in your area. 

So be sure to vet the agent before you hire them, including asking about their recent transaction history, getting a feel for how well they know the local market, and gauging their transparency when talking about commission rates.

Search online

The internet has made finding a real estate agent easier than ever before. Popular real estate sites like Zillow have useful agent finder tools that allow you to search for agents by city or zip code. 

However, literally thousands of realtors in each major city means searching for buyer's agents online can be pretty overwhelming. We recommend using online search to vet agents you found elsewhere, rather than finding an agent.

What if you're unhappy with your agent?Getting out of a buyer agency agreement is usually pretty easy. Most agreements spell out how you can break or cancel your contract, and it usually doesn't cost you anything. 

Where problems can arise is if you sign a buyer's agency agreement with one agent but then use another agent to purchase a home shown to you by the first agent. Depending on the contract, you may owe the first agent a commission. 

While the conversation might be awkward to broach, it's in your best interest to make sure you understand the implications of touring homes with an agent before you set foot through the door. Some agents may be willing to enter into a short-term, non-exclusive agreement that lets you feel each other out before entering into a formal contract.

Better yet, take some time upfront to ensure that the agent you tour homes with is the one that you want to hire.

» MORE: How to find a realtor

Buyer's agent vs. seller's agent: What's the difference?

A buyer's agent or "selling agent" represents the buyer, while a listing agent or "seller's agent" represents the seller. 

Most agents work as buyer's agents and seller's agents, but some work exclusively with buyers or sellers. Ultimately, both agents want the sale to close without any issues so they can earn a commission check. 

What is dual agency?

In some rare cases, an agent can work as both a buyer's agent and a listing agent in the same transaction, earning a double commission paycheck. When this happens, it's called dual agency. 

Dual agency is considered risky because it creates a conflict of interest. After all, how can your agent protect your best interests when they're also working for the seller? 

Given the potential conflicts of interest and confidentiality concerns, it's best to avoid dual agency whenever possible. 

The practice is also illegal in several states: Alaska, Colorado, Florida, Kansas, Oklahoma, Texas, Vermont, and Wyoming.

FAQs about buyer's agents

Related links