You are not required to have one. You can call listing agents directly, tour houses, and write your own offer. Plenty of people do.
What you should know before choosing that: since August 17, 2024, buyers sign a written agreement with their agent before touring, spelling out exactly what that agent is paid and by whom. The fee moved out of the MLS and into a conversation you have up front. That change made representation more transparent, not more expensive, and it means the real question is no longer “who pays” but “what do I get.”
Here is the honest version of both sides.
What does a buyer’s agent actually do?
Six things, in rough order of when they matter.
- Screens the market. Not just what is listed, but what is coming, what fell out of escrow, and what is quietly for sale. In a tight segment that access is most of the value.
- Tells you what is wrong with the house. Foundation, grading, roof age, additions done without permits, the school boundary that is about to move. A listing agent works for the seller and is not obligated to volunteer any of it.
- Prices your offer. What is this actually worth, and what will it take to win it without overpaying? That is a comps question, and it is the difference between an offer that gets accepted and one that gets you a house you overpaid for.
- Writes the terms. Inspection scope, financing contingency, appraisal contingency, closing date, occupancy. In a competitive offer, terms often matter more than price.
- Runs the inspection response. Separating real problems from cosmetic ones, getting quotes, and negotiating credits rather than repairs when that serves you better.
- Keeps the closing on the rails. Lender, title, appraisal, walkthrough. Roughly 40 to 60 days of moving parts where one missed deadline costs you the deal or your earnest money.
When can you skip it?
There are real cases. We would rather say so than pretend otherwise.
- You are buying from family, or a neighbor, at an agreed price. There is no negotiation to run. Hire a real estate attorney to paper it and you are fine.
- You are an experienced investor buying in a market you know cold. You already have comps, contractors, and a lender. You are the fifth thing on this list yourself.
- You are buying new construction from a builder and you have read the contract. Worth knowing: the builder’s sales rep represents the builder. Also worth knowing: many builders still pay a buyer’s agent out of their marketing budget rather than out of your loan, though policies now vary by builder and by community, and some have stopped. If you want representation, register your agent before your first visit, online or by phone. Most builders will not pay an agent who shows up after you have already walked the sales office and signed the visitor sheet. That one is worth getting right the first time, because it cannot be fixed later.
- You are paying cash for something you have already inspected, from a seller you trust. Attorney, title company, done.
Outside of those, the math usually favors representation, especially for a first purchase.
One case that is not on the list: going unrepresented on one of our listings. We do not allow a buyer to work directly with our listing agent. If you are interested in a home we have listed and you do not have an agent, we will get you one. More on why below.
Who pays the buyer’s agent now?
Short answer: it is negotiated, and it is in writing before you tour.
Since the NAR settlement took effect in August 2024, three things changed:
- Buyer-broker compensation is no longer advertised on the MLS. Your agent has to ask the listing side what, if anything, the seller is offering on each house.
- You sign a written buyer agreement before touring. It names your agent’s fee, and that is the ceiling. Your agent cannot accept more from the seller than what you agreed to.
- The seller can still cover it, as a concession. Many do. It just is not automatic anymore, and it is a negotiated line in your offer rather than a number posted in advance.
So on any given house, the fee might be covered fully by the seller, covered partly, or paid by you. Your agent should tell you which one it is before you write the offer, not at closing. We break down the full mechanics, the typical percentages, and how the Metro Detroit market has actually settled out in buyer’s agent fees in Metro Detroit.
What was the buyer agent commission lawsuit about?
A group of home sellers sued the National Association of Realtors and several brokerages, arguing that the practice of advertising buyer-agent compensation on the MLS kept commission rates artificially high. NAR settled. The rule changes took effect on August 17, 2024.
What actually changed for you as a buyer:
| Before August 2024 | After |
|---|---|
| Buyer-agent fee posted on the MLS | Removed from the MLS entirely |
| Fee effectively set by the listing side | Negotiated between you and your agent, in writing |
| No written agreement required before touring | Written buyer agreement required before touring |
| Seller paid both sides by default | Seller may cover it as a concession, negotiated per deal |
What did not change: commissions were always negotiable, and they still are. The settlement made that visible rather than making it true.
How do you find a good buyer’s agent?
Interview two. Ask these, and listen for whether the answers have numbers in them.
- How many buyers have you closed in my price band and my target cities in the last year? Specific area, specific band.
- What is your fee, and what happens on a house where the seller offers less than that? You want the gap covered before you fall in love with a listing.
- How do you price an offer? You are listening for closed comps and a read on the competition, not “we will start low and see.”
- What is your availability? In a fast segment, a house you cannot see until Sunday is a house you are not buying.
- Who will actually take me out? On teams, ask directly.
- How many of your buyers’ offers got accepted last year, and at what over-ask? Not everybody tracks it. The ones who do are usually worth hiring.
One structural note, and it is our house rule. If you call the listing agent on a sign and ask them to write your offer, that agent would be representing both sides of a negotiation you are on one end of. Michigan allows it. Under MCL 339.2517 a licensee can represent both seller and buyer with the knowledge and informed consent, in writing, of both parties, and the statute calls that a disclosed consensual dual agent.
We do not do it. A buyer never works directly with our listing agent on one of our listings. You get your own representation, every time.
The reason is in the statute itself: a dual agent cannot disclose all known information to either side. That is not a loophole, it is the design. The person who knows what the seller will really take is then barred from telling you. We would rather not put anyone in that position.
What questions should a first-time buyer ask?
Beyond the six above, these are the ones people wish they had asked earlier.
- What will my actual monthly payment be, with taxes and insurance? Ask your lender this one, not your agent. Payment questions belong with the person underwriting the loan. What your agent should flag is the Michigan-specific piece: a sale can uncap the taxable value under Proposal A, so the seller’s current tax bill may be well below what yours will be. Take that to your lender and have them run the payment on the uncapped number.
- What are my closing costs, in dollars? Get an estimate before you write your first offer, not after.
- What is the difference between pre-qualified and pre-approved? Pre-approval means a lender pulled credit and verified income. In a competitive offer, pre-qualification is not going to carry you.
- What happens to my earnest money if I walk? Depends entirely on which contingency you use and whether you are inside its deadline.
- What is the inspection actually going to find? On a Metro Detroit house built before 1970: expect the report to name the electrical panel, the sewer line, and the furnace. Knowing that in advance makes the report a lot less alarming.
How we work with buyers
We have sold thousands of houses across Royal Oak, Ferndale, Birmingham, and everywhere in between (about 850 a year since 1999), and a good share of those were on the buy side.
- Our fee is in writing before you tour, and we tell you on every house what the seller is offering toward it. No surprises at the table.
- We will talk you out of a house. Occasionally more than one. That is the job.
- If your agent is tied up, another one of us shows you the house. Whoever is free goes. You are never sitting on one person’s calendar waiting to see something that just came on.
- We text back. During the search, during the offer, and at 9pm the night before closing when you remember one more question.
Buying a house is the biggest text thread of your life. Talk to an agent and we will start yours. New to this? Our first-time buyer page walks through the whole sequence.
Frequently asked questions
Do I need a buyer’s agent to buy a house?
No, you are not required to have one. You can contact listing agents directly and write your own offer. Representation is most valuable when you are negotiating price and terms, evaluating condition, or buying for the first time. It matters less when you are buying from someone you know at an agreed price, or you are an experienced investor in a market you already track.
Who pays the buyer’s agent commission now?
It is negotiated rather than fixed. Since August 17, 2024, buyer-agent compensation is no longer advertised on the MLS, and buyers sign a written agreement with their agent before touring that sets the fee. Sellers frequently still cover it as a concession, but that is negotiated deal by deal and should be confirmed before you write an offer.
What was the NAR buyer agent commission lawsuit?
Home sellers sued the National Association of Realtors and several brokerages, arguing that advertising buyer-agent compensation on the MLS kept commissions artificially high. NAR settled, and the resulting rule changes took effect August 17, 2024. Buyer-broker compensation was removed from the MLS and written buyer agreements became required before touring.
What is the average buyer’s agent commission?
There is no standard rate and there never has been. Nationally, total commission has averaged near 5.7% split between the two sides, putting the buyer side historically around 2.8%. Since August 2024 each side is negotiated separately, so the number on your transaction is whatever you and your agent agree to in writing.
Can I use the listing agent to buy the house?
Not on one of ours. Michigan permits dual agency under MCL 339.2517, with the knowledge and informed consent in writing of both the buyer and the seller, and the statute calls that a disclosed consensual dual agent. We do not work that way. The reason is built into the statute: a dual agent cannot disclose all known information to either side, so the person who knows the seller’s true bottom line would be barred from sharing it with you. Every buyer on our listings gets their own representation.
Do builders pay buyer’s agents on new construction?
Many do, typically out of the builder’s marketing budget rather than your loan, though policies vary by builder and community and some have stopped. The critical detail is timing: most builders will only pay an agent who was registered before or at your first visit. If you tour a model home alone and sign the visitor sheet, many builders will refuse to pay your agent afterward, and that cannot be undone.
What questions should a first-time buyer ask their agent?
Ask for closing costs in dollars before your first offer, what happens to your earnest money if you walk, and which contingency protects you. Take monthly payment questions to your lender rather than your agent, since the lender is the one underwriting it. Your agent should still flag the Michigan-specific piece: a sale can uncap the taxable value under Proposal A, so the seller’s current tax bill may understate yours. Have your lender price the payment on the uncapped number.