After the 2024 National Association of Realtors (NAR) settlement changed how buyer’s agents are compensated, many buyers are unsure whether they still need their own agent, how that agent gets paid, and what they are signing when they agree to representation. The short answer: a buyer’s agent represents your interests in the transaction, you now sign a written buyer agency agreement specifying their compensation before touring homes, and that compensation can be paid in several ways, including by the seller, by you, or a combination. The changes increased transparency around compensation; they did not eliminate the value of having someone represent your side of one of the largest purchases of your life.
This guide explains how it works now.
What changed in the 2024 NAR settlement
Before the settlement, buyer’s agent compensation was typically advertised in the MLS and paid by the seller through the listing broker, often without the buyer seeing or negotiating it directly. The settlement changed two main things:
- Buyer agent compensation is no longer published in the MLS. It is now negotiated separately in each transaction rather than set as a market default visible to all.
- Buyers must sign a written buyer agency agreement before touring homes with an agent. This agreement specifies what the agent’s compensation will be and how it will be handled.
The practical effect is more transparency and more negotiation around buyer-side compensation. It did not remove buyer representation; it formalized and clarified the terms.
The buyer agency agreement
The buyer agency agreement is now a required, upfront document. It establishes the relationship between you and your agent and specifies:
- The scope of representation (what the agent will do for you)
- The duration of the agreement
- The compensation the agent will earn and how it is calculated
- How that compensation will be sourced, whether sought from the seller, paid by you, or a combination
Reading and understanding this agreement before signing is important, and a good agent will walk through it with you in plain language. The compensation terms are negotiable. The agreement protects both parties by making the arrangement explicit before any homes are toured.
How buyer’s agents are paid now
Buyer agent compensation in 2026 generally comes from one of these sources, often negotiated as part of the transaction:
Seller or listing broker contribution. Sellers can still offer to pay buyer-agent compensation, and many do, because it makes their home more attractive to the broadest pool of buyers. This is now negotiated per transaction rather than published in advance. When the seller contributes, the buyer’s out-of-pocket cost for representation can be zero, much like before, but the arrangement is now explicit.
Buyer-paid compensation. If the seller does not cover the buyer’s agent compensation, the buyer agency agreement specifies what the buyer will pay. This can sometimes be built into the offer, asking the seller to credit the buyer’s agent compensation as a term of the deal.
A negotiated combination. In many transactions, buyer-agent compensation becomes one of the negotiated terms of the Agreement of Sale, alongside price, closing date, and contingencies, with the parties agreeing on who pays what.
The key change is that compensation is now an explicit, negotiated part of the transaction rather than an invisible default. A good buyer’s agent explains the options and works to structure the compensation in the buyer’s favor, including seeking seller contribution where possible.
Why buyers still benefit from representation
The compensation changes prompted some buyers to wonder whether they should forgo a buyer’s agent and deal directly with the listing agent. That is usually a mistake, because the listing agent represents the seller’s interests, not the buyer’s. The value a buyer’s agent provides has not changed:
Comparable-sales analysis and pricing strategy. Knowing what a home is actually worth, and what to offer, based on current comparable sales rather than the list price.
Negotiation on your side. The listing agent is contractually working to get the seller the best price and terms. A buyer’s agent does the same for you.
Managing the transaction. Inspection negotiation, contingency deadlines, appraisal issues, and the dozens of steps between offer and settlement, with someone accountable to your interests.
Local and process expertise. The Pennsylvania-specific details, the Agreement of Sale, the inspection contingencies, the appraisal gap dynamics, and the settlement process, handled by someone who does this routinely.
For most buyers, particularly first-time buyers and those relocating, having dedicated representation on the largest purchase of their life is worth far more than any compensation arrangement.
What this means for first-time and relocation buyers
First-time buyers, who are navigating the process for the first time, and relocation buyers, who lack local market knowledge, benefit most from representation. The buyer agency agreement formalizes a relationship that, for these buyers especially, provides the guidance and advocacy that makes a complex process manageable. The compensation discussion is simply part of the upfront conversation, and a good agent makes it transparent from the start.
This guide is general information about how buyer representation works in Pennsylvania in 2026. The specific terms of any agreement should be reviewed before signing.
Working with Karen
Karen Langsfeld is a REALTOR® and Pricing Strategy Advisor (P.S.A.) with Berkshire Hathaway HomeServices Fox & Roach in Blue Bell. She represents buyers across Montgomery County, Bucks County, the Main Line, and South Jersey, and walks every buyer through the buyer agency agreement and compensation options transparently before any homes are toured, working to structure compensation in the buyer’s favor.
For the full buying process, the steps to buying a home in Montgomery County cover the sequence, and the buyer representation page describes how Karen works with buyers.
Contact Karen at (215) 495-2914 or through the contact page.