If you're in the market to buy a home, you've probably heard the term Buyer Agency Agreement tossed around. But what exactly does it mean, and why is it important for homebuyers? This guide will walk you through everything you need to know about buyer agency agreements—what they are, how they work, and why signing one could be a smart move in your home-buying journey.

What Is a Buyer Agency Agreement?

A Buyer Agency Agreement is a legal contract between a homebuyer and a real estate agent (also known as a buyer's agent). This agreement outlines the responsibilities of the agent, the scope of services they will provide, and the expectations for both parties. In simple terms, it formalizes the relationship and confirms that the agent is working in the best interest of the buyer—not the seller.

Key Components of a Buyer Agency Agreement

When reviewing a buyer agency agreement, you’ll likely see the following sections:

1. Duration of the Agreement

This specifies how long the agreement is valid—often 3 to 6 months, though it can be adjusted based on your preferences.

2. Exclusive vs. Non-Exclusive Agreements

• Exclusive Agreement: You work solely with one agent.

• Non-Exclusive Agreement: You can work with multiple agents, though this is less common and may limit the services you receive.

3. Agent Duties

Your agent will help you:

• Search for homes

• Schedule showings

• Negotiate offers

• Navigate paperwork

4. Buyer’s Obligations

You may be expected to:

• Communicate openly

• Be financially pre-approved

• Only make offers through your designated agent

5. Commission

While sellers usually cover the agent’s commission, the agreement may include details about compensation—especially in cases where a seller offers less than the expected amount.

Why You Should Sign a Buyer Agency Agreement

✅ Loyal Representation

Once you sign the agreement, your agent is legally obligated to represent your best interests.

✅ Access to Full Service

Agents are more willing to go the extra mile for buyers who commit to them.

✅ Clarity and Transparency

The contract sets clear expectations, so everyone is on the same page from the start.

✅ Negotiation Power

An experienced buyer's agent can help you get the best possible deal, especially in competitive markets.

Common Misconceptions About Buyer Agency Agreements

❌ “I’ll Be Locked In Forever.”

Most agreements have an expiration date and can be canceled with proper notice.

❌ “I’ll Have to Pay Extra.”

In many cases, the seller pays the commission for both agents. But it’s always good to clarify.

❌ “I Don’t Need an Agent—I Can Do It Myself.”

While online tools are helpful, a licensed buyer’s agent brings expertise, negotiation skills, and local market knowledge that can save you time, stress, and money.

Questions to Ask Before Signing

Before committing, ask your prospective agent:

• How long is the agreement?

• What happens if I find a home on my own?

• Can I terminate the agreement early?

• What services are included?

A Buyer Agency Agreement isn’t just paperwork—it’s your ticket to a smoother, more successful home-buying experience. By having a dedicated professional in your corner, you gain a trusted advisor who will help you navigate one of the biggest financial decisions of your life.

If you’re getting ready to buy a home, take the time to understand the buyer agency agreement and choose a knowledgeable, communicative agent who’s committed to your goals.

Matt Witte strives to be the best realtor in North Andover MA.

Any questions about real estate, reach out to Matt Witte North Andover Realtor MA