How Buyer Representation Agreements Are Leaving Some Homebuyers Stuck

Key Points:

• Following a 2024 legal settlement, most U.S. real estate agents must now have buyers sign a written buyer representation agreement before touring homes, aiming to clarify the agent-client relationship and fees upfront.
• Kirsten Ganas and her partner unknowingly signed a year-long exclusive buyer agreement with high fees, which they found restrictive and costly, illustrating concerns that many buyers may be locked into unfavorable contracts without fully understanding the terms.
• The agreements vary widely in length, fee structure, and exclusivity, and critics argue that dense legal language and timing of signing can disadvantage consumers unfamiliar with real estate practices.
• Despite the settlement's intent to increase transparency and empower buyers, research shows it has not significantly reduced commissions or changed how fees are negotiated, and most buyer agent commissions remain paid by sellers.
• Experts advise prospective homebuyers to thoroughly research, interview multiple agents, and carefully review contract terms before signing, as these agreements can bind them financially for extended periods even if the relationship with the agent is unsatisfactory.