If you're buying a home, you'll be asked to put your working relationship with your agent in writing — including compensation. Here's the whole picture: why it's required, when you sign, what's negotiable, and why my fee often costs you little out of pocket.
A written buyer agreement is simply an agreement between you and your agent that outlines the services they'll provide and the compensation they'll receive. (Not sure how to choose an agent first? Start with the differences between agents and what to expect when you meet one.)
Why now? As of August 17, 2024, written buyer agreements became a nationwide requirement for many real estate professionals, following the National Association of REALTORS®' settlement of litigation over broker commissions. Some states had required them for years; now they're expected everywhere. The point is clarity and transparency — you'll know exactly what you're getting and what it costs, up front.
You'll be asked to sign before you tour your first home together. "Touring" includes both in-person visits and live virtual tours, where your agent walks a home for you remotely.
You're "working with" an agent once they start providing services — identifying properties, arranging tours, and the like. Simply speaking with an agent, or having them market their services, doesn't count.
A "tour" is when you (working with an agent) enter a home that's for sale, or direct your agent to enter on your behalf — including a live virtual walkthrough when you're not physically there.
Everything in the agreement is on the table — and none of it is set by law.
Only sign an agreement that reflects what you've actually agreed to — you're in the driver's seat.
The settlement set clear requirements for how compensation appears in your buyer agreement.
A specific, conspicuous statement of the amount or rate your agent will receive — or exactly how it will be determined.
Objective and not open-ended — $0, a flat fee, a percentage, or an hourly rate — never "whatever the seller is offering."
Your broker can't receive more than the amount you agreed to, from any source. This is the rule that makes seller-paid compensation lower your cost — and removes any incentive to steer you.
A clear statement that broker fees and commissions are fully negotiable and not set by law.
It's never set by the MLS or by any law — it's fully negotiable between you and me. It can take a few forms:
A set dollar amount for the agreed services.
A percentage of the home's purchase price — the model I use most often.
An hourly rate for the time worked.
You agree to a compensation amount in your buyer agreement — but here's what many first-time buyers don't realize.
With your consent, I can ask the seller or the listing brokerage to cover my compensation — either before you make an offer, or as a term of your purchase offer. The seller can agree, counter a smaller amount, or decline.
Here's why that matters: because of Rule 3 above, a buyer's brokerage can't collect more than the total you agreed to. So every dollar the seller pays is subtracted from what you'd owe — which often brings your out-of-pocket cost down to little or nothing.
My goal is for my fee to cost you as little as possible out of pocket. The seller is never obligated to pay it, so we'll always be clear on your agreement up front — but fighting to get that handled for you is exactly the kind of thing I dig in on.
A seller is never required to pay a buyer's brokerage, and any seller-offered compensation can't be advertised on the MLS — but there are often advantages to a seller paying, and any amount is freely negotiable. This is general information, not legal advice; ask me or an attorney about your specific situation.
A protection built right into the system.
Because I'm paid the amount we agreed to in your buyer agreement — no matter what (if anything) a seller is offering — the size of any compensation offer has no effect on what I earn. That means I have no reason to nudge you toward higher-paying listings or away from lower-paying ones. You'll hear about every home that fits your criteria, period. The REALTOR® Code of Ethics also flatly prohibits this kind of "steering."
You never have to sign an agreement you're not comfortable with. You — or the agent — can walk away at any time. If the fit isn't right, keep looking; another agent may suit you better.
Yes — you and your broker can mutually agree to change the terms. The agreement may set conditions for ending it, alongside New Mexico law, so read it closely and talk with your broker first.
Your agreement doesn't lock you into one kind of relationship — you can enter any type allowed by New Mexico law. New Mexico is an express-agency state, so representation is put in writing: you'll sign a written buyer-broker agreement and receive a Broker Duties disclosure. By default your broker works as a transaction broker — owing you statutory Broker Duties like honesty, reasonable care, and keeping your negotiating position confidential — with full agency only when it's spelled out in writing. See what your broker owes you and how representation works.
The settlement changed some paperwork, not the partnership. I'm still here to guide you through the whole journey, compensation is still fully negotiable, and you still have choices. As an Accredited Buyer's Representative (ABR®), I'll walk through every line with you and work hard to keep your out-of-pocket cost low before you sign a thing.
As of August 17, 2024, written buyer agreements became a nationwide requirement for many real estate professionals, following the National Association of REALTORS® settlement of litigation over broker commissions. Some states had required them for years; now they're expected everywhere. The agreement lays out the services your agent will provide and what they'll be paid, so everything is clear and transparent from the start — and it's fully negotiable.
You'll be asked to sign before you tour your first home together, and touring includes both in-person visits and live virtual tours where your agent walks a home for you remotely. You're "working with" an agent once they start providing services like identifying properties or arranging tours. You do not need a signed agreement to attend an open house on your own or to simply ask an agent about their services.
Compensation isn't set by the MLS or by any law — it's fully negotiable. It can be a flat fee, an hourly rate, or a percentage of the purchase price, and the percentage model is the most common and the one I use most often. It must be a specific, defined amount. And it often doesn't come out of your pocket: with your consent I can ask the seller or listing brokerage to cover it. Because a buyer's brokerage can't collect more than the amount you agreed to, every dollar the seller pays is deducted from what you'd owe. I'll do everything in my power to negotiate my compensation from the seller so it costs you as little as possible.
No. Because I'm paid the amount we agreed to in your buyer agreement regardless of what any seller is offering, the size of any compensation offer is irrelevant to my pay — so there's no incentive to nudge you toward higher-paying listings or away from lower-paying ones. You'll hear about every home that fits your criteria. The REALTOR® Code of Ethics also flatly prohibits this kind of steering.
Yes — you and your broker can mutually agree to change the terms, and the agreement may set specific conditions for ending it, alongside New Mexico law, so read it closely. A couple of cautions: a buyer agreement is exclusive for a property or type of property over a set time period, so don't sign more than one covering the same thing, and signing electronically still creates a binding contract. You're in the driver's seat — never sign anything with terms you don't agree with or understand.
Let's talk it through. I'll explain how I work, how my fee works, and how I'll try to get the seller to cover it — no pressure, and no obligation to move forward until it feels right.