ABA Family Legal Guide

Buying and Selling a Home

Meeting the Players

Selecting a Real Estate Agent to Help You Buy a Home

What is the fee relationship with a buyer's agent?

Most buyers prefer to have their agent's fee paid by the seller to avoid additional costs. But be aware that this preference could create a conflict of interest for the buyer's agent. Of course, if the agent is being compensated by the seller only if the deal is closed, he or she might not represent the buyer's interests vigorously.

Alternatively, a buyer's agent may be hired based upon a nonrefundable fee, which will vary with the length of the home search and the extent of the services provided. If you choose this option, you will want to have a specific contract that, like all written contracts, should be reviewed and approved by your lawyer. The contract should specify the services to be provided and the fees that will be due. If possible, avoid having the fee connected to the purchase price of the home. You do not want to provide an incentive for your agent to encourage a more-expensive sale than you want.