The Buyer Broker Agreement: What It Is, What You're Agreeing To, and Why It Works in Your Favor
By Kim Reidy | Senior Broker & Director of Relocation, Pointe3 Real Estate
If you're buying a home in Seattle and haven't heard of a Buyer Broker Agreement, you will. Since the 2024 NAR settlement, written buyer broker agreements are required before a buyer and agent can tour homes together. Washington's own agency law, updated effective January 1, 2024, independently requires a written agreement before an agent can represent you. Most buyers I work with are a little surprised by this requirement. Once I explain what it actually is, the surprise usually goes away pretty quickly.
Here's what you need to know.
What Is a Buyer Broker Agreement?
A Buyer Broker Agreement (BBA) is a written contract between you and your real estate agent that establishes the terms of your working relationship. It defines who represents you, how long that representation lasts, and how your agent will be compensated.
Think of it as the buyer's equivalent of the listing agreement a seller signs when they hire an agent to sell their home. It formalizes the relationship and makes sure everyone is working from the same understanding.
What You're Agreeing To
The agreement covers a few key things:
Representation. Your agent is legally representing your interests. They have a fiduciary duty to you, which means they're obligated to act in your best interest, keep your information confidential, and give you honest advice even when it's not what you want to hear.
Exclusivity. I work with buyers on an exclusive basis, which means during the term of the agreement you're working with me and not simultaneously working with other agents. This isn't unusual. It's the standard approach, and it ensures I can dedicate the time and resources your search deserves.
Compensation. This is the part that makes some buyers nervous, and it's worth addressing directly.
The Compensation Question
Here's the honest picture of how buyer agent compensation works in Seattle right now.
Broker compensation is fully negotiable and is not set by law. There is no standard, typical, or customary rate, and any agent who tells you otherwise is misinformed. What your agent is paid is agreed between you and your agent in the Buyer Broker Agreement.
The 2024 NAR settlement changed the rules around how buyer agent compensation is advertised and negotiated. Sellers are no longer required to offer compensation to a buyer's agent. In practice, most Seattle listings still include one. What a given seller is offering isn't published on the public listing portals anymore, but I can see it before we tour, and I'll tell you what it is up front. There are no surprises about what's on the table.
If you select a property where the seller's offered compensation is less than what's specified in our agreement, I'll let you know before we get to the contract stage so you can factor that into your decision. You won't find out at the closing table.
What If You're Not Ready to Commit?
This is where a lot of buyers feel relieved when I explain their options.
You don't have to sign a long-term agreement before you're comfortable working with me. We can sign a Buyer Broker Agreement for a single specific address if you want to tour one home and see how the process feels before committing further. We can also sign for a short period of time rather than the full search timeline.
Both are completely reasonable approaches, and I'm happy to structure it however makes you most comfortable. The goal is for you to feel secure in the relationship, not locked in before you're ready.
Why This Actually Protects You
Before the BBA requirement, buyers could work with agents informally without any written understanding of who represented them or what the agent's obligations were. In practice, that created situations where buyers weren't sure whose interests their agent was actually serving.
The Buyer Broker Agreement makes the representation explicit and legally binding. You know exactly who is working for you, what they're obligated to do on your behalf, and what the compensation arrangement looks like before you're deep into a transaction.
For buyers navigating Seattle's market, especially those relocating from out of state who may be making decisions quickly and under pressure, having a clearly defined representative in your corner matters. The BBA is what makes that representation official.
What to Expect When We Work Together
Before we tour any homes, we'll sit down and review the agreement together. I'll walk you through every section, answer every question, and make sure you understand exactly what you're signing. Nothing gets signed until you're comfortable.
From there, we get to work: setting you up on RealScout for live listings, scheduling tours, and building a strategy for your search.
If you're ready to start that conversation, reach out at KimReidy.com.
About Kim Reidy
Kim Reidy is a Senior Broker and Director of Relocation at Pointe3 Real Estate in Seattle who has been helping corporate transferees and individuals find the right neighborhood since 2010. A Certified Negotiation Expert (CNE) and Certified Buyer Agent Expert (CBAE), she's known as Seattle's "neighborhood whisperer."
Pointe3 Real Estate · (206) 237-6391
Equal Housing Opportunity. Kim Reidy is licensed in Washington State, regulated by the Washington State Department of Licensing. Broker compensation is fully negotiable and not set by law; there is no standard or customary rate. This article is general information only and is not legal advice. Confirm the specific terms of any agreement with your broker or attorney before signing.
