Under rules that took effect in August 2024, a buyer working with an agent now signs a written agreement before touring homes, and that agreement must state how the agent will be paid. Compensation is negotiable, and listings on the MLS no longer include offers of compensation to buyer agents.
What the agreement should spell out
- How long the agreement lasts and what area it covers.
- What your agent will do for you.
- How and how much the agent will be paid, stated clearly.
- How either side can end the agreement.
What is negotiable
Every term is negotiable, including the length of the agreement and the compensation. No amount is set by law or by any association. Ask questions and read the agreement before you sign, and feel free to have your attorney review it.
Agreement forms and brokerage policies differ. Ask Darren to explain the form he uses before you sign anything.
Why it matters for you
The change puts the conversation about value and cost up front. A good agent will explain what they do, how they are paid, and what happens if the seller offers to cover some or all of that cost.
Frequently asked questions
Do I have to sign a buyer agreement to see a home?
In most cases, yes. A written agreement is typically required before an agent tours a home with you. Ask Darren how it applies to open houses and your situation.
Is buyer agent compensation negotiable?
Yes. It is fully negotiable and must be stated in the written agreement.
Can the seller still pay my agent?
Sellers may offer to pay some or all of a buyer’s agent compensation as part of negotiating an offer, but it is no longer advertised through the MLS.
Sources
- National Association of REALTORS® — settlement and practice changes
- Illinois Realtors — consumer resources
This article is general educational information for Illinois home buyers and sellers. It is not legal, tax, lending or financial advice, and rules, rates and fees change. Confirm details with your attorney, lender or title company. Darren Reagan, REALTOR®, License 475.170639, Charles Rutenberg Realty.
