How Buyer Agent Compensation Works & What Buyers Need to Know
Buying a home is one of the largest financial decisions most people ever make, yet buyer agent compensation is often poorly explained.
This article breaks it down clearly, so you know:
- how buyer agents are paid,
- when buyers might pay out of pocket,
- and how I structure representation to protect you.
My Buyer Representation Model
I work under a 3% buyer representation agreement.
In approximately 99% of MLS transactions, the seller pays the buyer’s agent fee — meaning buyers do not pay me out of pocket.
This has been common practice for decades and remains typical in Washington State.
How Compensation Is Handled in Practice
When we write an offer:
- we request that the seller pay the buyer agent fee,
- just as they have in most traditional transactions.
Sometimes sellers offer higher buyer-side compensation as an incentive (for example, 4%). When that happens, I pass that benefit on to the buyer as a savings.
What If the Seller Doesn’t Offer Full Compensation?
This is rare, but when it happens we explore options such as:
- requesting compensation in the offer,
- adjusting price structure,
- or modifying strategy.
Only as a last resort would a buyer be asked to contribute — and that decision is:
- disclosed in advance,
- fully explained,
- and entirely the buyer’s choice.
Buyers always have the option to proceed or walk away.
When Do We Review Compensation?
Buyer consultations and representation agreements are now a standard part of my process — much like filling out paperwork at a doctor’s office.
This establishes:
- clarity,
- professionalism,
- and equal footing from the start.
There is no pressure — just transparency.
Why Buyer Representation Matters
Good buyer representation isn’t about opening doors.
It’s about:
- evaluating value,
- negotiating price and terms,
- navigating inspections,
- managing financing risks,
- and protecting you from costly mistakes.
My goal is to help you:
- buy the right home,
- at the right price,
- with confidence.