Your agent can make or break the home buying experience. Knowing what to look for -- and what to avoid -- helps you find someone who genuinely has your interests in mind.
Buyer's Agent vs. Listing Agent
A listing agent (also called a seller's agent) represents the homeowner who is selling the property. Their job is to get the highest price and best terms for the seller. A buyer's agent represents you, the purchaser. Their job is to help you find the right property, negotiate the best price, and guide you through the closing process.
Following the 2024 NAR settlement, commission structures have changed significantly. Sellers are no longer required to offer compensation to buyer's agents through the MLS. This means you may need to negotiate your buyer's agent compensation separately and sign a written buyer agency agreement before touring homes. Understanding this shift is essential before you start your search.
How Commission Works
Historically, the seller paid a total commission of 5-6% of the sale price, split between the listing agent and buyer's agent. On a $400,000 home, that was $20,000-$24,000 total, with each agent's brokerage receiving roughly half.
Today, commissions are more negotiable than ever. Some buyer's agents charge a flat fee, others work on a percentage, and some offer tiered service levels. You should discuss compensation upfront and understand exactly what services are included. Ask whether the agent's fee can be negotiated into the purchase price or seller concessions as part of your offer.
Remember that the agent does not keep the full commission -- their brokerage takes a split, and the agent pays taxes, MLS fees, insurance, and marketing costs out of their share. A good agent earns their fee through negotiation skills, market knowledge, and protecting you from costly mistakes.
Interview Questions That Matter
Do not just hire the first agent your friend recommends. Interview at least two or three candidates and ask specific questions that reveal their competence and approach.
- How many buyers have you represented in the last 12 months? Look for agents who actively work with buyers, not primarily sellers. An agent who closed 15-20+ buyer transactions in the past year has current market experience.
- What is your average list-to-sale price ratio for your buyers? This tells you how well they negotiate. If their buyers consistently purchase below asking price, that is a good sign.
- How will you communicate with me and how often? Set expectations early. Some agents send daily updates while others only check in weekly. Make sure their style matches your needs.
- Can you provide references from recent buyer clients? Any experienced agent should be able to connect you with 2-3 past clients who can speak to their service.
- What happens if I am not satisfied with your service? Understand the terms of the buyer agency agreement, including how to terminate the relationship if things are not working out.
Referral Agents vs. Online Agents
Referral agents come through personal recommendations from friends, family, or colleagues. The advantage is that someone you trust has first-hand experience with them. The risk is that your friend's needs may have been very different from yours, or the agent may have performed well in a different market segment.
Online platforms like Zillow, Redfin, and Realtor.com match you with agents based on area and availability. Some of these services offer reduced commissions or rebates. The trade-off may be less personalized attention -- high-volume online agents sometimes juggle dozens of clients simultaneously. If you go this route, pay close attention to reviews and verify transaction volume in your specific neighborhood.
Regardless of how you find candidates, the interview process matters more than the source. A great referral agent and a great online agent can both deliver excellent results. A mediocre agent from either channel will cost you time and money.
Dual Agency: The Risk You Need to Understand
Dual agency occurs when a single agent (or brokerage) represents both the buyer and the seller in the same transaction. This creates an inherent conflict of interest. The agent cannot fully advocate for the best price on your behalf while simultaneously trying to maximize the sale price for the seller.
Some states prohibit dual agency entirely. In states where it is legal, you must consent to it in writing. As a buyer, there is rarely a good reason to agree to dual agency. The listing agent may offer you a reduced commission or other incentive, but you lose the benefit of having someone whose sole loyalty is to you. If you find a home listed by your agent's brokerage, ask whether a different agent within the firm can represent you instead.