Buyer Agreements Explained: What's Changed When You Buy a Home
If you haven't bought a home in a few years, one part of the process will feel new. Since August 2024, buyers working with an agent sign a written agreement before touring homes. The change came out of a national real estate settlement, and it applies here in Minnesota just like everywhere else. Here's what it means for you.
What a buyer agreement is
A buyer agreement is a short contract between you and your agent. It spells out what the agent will do for you, how long the agreement lasts, and how the agent is paid. It puts in writing what used to be handled informally, so everyone knows the terms before you start touring.
What it has to include
The agent's compensation, stated as a specific amount, a percentage, or a rate. It can't be open-ended.
A commitment that the agent can't be paid more than the amount you agreed to, from any source.
The term and scope, such as how long the agreement lasts and whether it covers a specific area or property type.
How agent pay works now
Offers of buyer-agent compensation no longer appear on the MLS. That doesn't mean you always pay your agent out of pocket. Sellers can still agree to cover some or all of your agent's fee, and buyers can ask for it as part of an offer, often as a seller concession. Your agent will talk through options for each home so you understand the full cost before you write an offer.
Everything is negotiable
Agent compensation has always been negotiable, and the new rules make that clear. Read the agreement, ask questions, and make sure the terms match what you expect. A good agent will walk through every line with you.
Questions to ask before you sign
How long does this agreement last, and can I end it early?
What happens if a seller offers to pay your fee?
Does this cover every home I look at, or only certain areas?
What services are included, from showings through closing?
Why it's worth having an agent in your corner
Your agent helps you find the right home, understand what it's worth, write a strong offer, and handle inspections, appraisals and closing. In a market like Duluth, where older homes and unique properties are common, local knowledge saves buyers from costly surprises.
Ready to start your search?
We'll walk you through the buyer agreement in plain language before you tour a single home. Learn how we help buyers or call Jordan at 218-428-0861.
This article is general information, not legal advice. Your agent can explain the specific agreement you'll sign.