structures. Buyers must be proactive in understanding the costs associated with their agent's services and may need to factor these costs into their overall budget for purchasing a home. Here are some ways a buyer’s agent can be compensated: 1. Split Commission Model: Beginning August 17, 2024, commission information will no longer be shared via the Multiple Listing Service (MLS). Compensation agreements based on commission must now be established off-MLS through negotiation and consultation between real estate professionals. These agreements may still adhere to the traditional split commission model, in which real estate agents receive a commission based on the final sale price of the home. This commission is typically a percentage agreed upon between the seller and the listing agent. When using this payment model, the buyer's agent will receive a portion of the commission as arranged between the listing agent and the buyer's agent. Typically, all commission payments are processed through the broker managing the brokerage where the agent works. From there, the commission is divided between the broker and the agent according to their internal agreement. 2. Direct Payment from the Buyer: The buyer may agree to pay their agent directly. This can be a flat fee, an hourly rate, or a percentage of the purchase price. 3. Negotiated Arrangements: Customized compensation agreements can be negotiated between the buyer and their agent. Before you start touring homes, new regulations require you to enter into a written buyer’s agreement with your agent. This agreement outlines the services your agent will provide, the compensation structure, and other terms of your working relationship. The greater flexibility for agent compensation methods due to recent changes in regulations reinforces the importance of entering into a written buyer’s agreement. This
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