If you’re buying or selling a home in Sandpoint, Coeur d’Alene, or anywhere in the U.S., you’ve probably heard about buyer representation agreements. As of August 2024, these agreements are now required nationwide. Whether you’re new to the process or just haven’t bought a home in a while, here’s what you need to know to navigate this new requirement with confidence.
Do You Have to Sign a Buyer Representation Agreement Just to See a Home?
Short answer: Yes.
Let’s say you’ve been scrolling through listings of lakefront homes on Lake Pend Oreille or a condo near Schweitzer Mountain. You find one that checks all your boxes and call a local agent to set up a tour. Before they can show you the home, they’ll ask you to sign a buyer representation agreement.
Why? Because this agreement lays out how your agent works for you, what services they provide, and how they get paid. Most buyers sign an agreement for a set period (like through the end of the year), but if you’re still exploring your options, you can sign a one-time showing agreement instead.
Is This a New Requirement?
Yes and no. Some states have required buyer representation agreements for years, while others are just now implementing them. But as of August 2024, this is a nationwide requirement. If you’ve bought a home in another state recently, you might have already signed one without giving it much thought. But if it’s been a while since your last home purchase, this might feel new.
At the end of the day, it’s about transparency—making sure buyers know exactly what they’re getting and how their agent is working for them.
Are Real Estate Commissions Negotiable?
Yes.
There is no set commission in Sandpoint, Coeur d’Alene, or anywhere else. Different brokerages set their own rates based on experience, marketing strategies, and level of service. If you’re working with an agent, discuss costs upfront so there are no surprises.
When Do You Need to Sign an Agreement?
If you’re serious about touring homes in North Idaho, whether in person or virtually, you’ll need to sign an agreement before an agent can show you a property.
If you’re just browsing open houses, you don’t need to sign anything to view those homes. The agreement comes into play when you view a home with a real estate agent. Just remember, you can sign an agreement that is valid for a single day or specific homes, or both.
Do Buyers Have to Pay Their Agent Out of Pocket?
This is one of the biggest concerns buyers have. Technically, the agreement states that you’re responsible for compensating your agent, but in most cases, the seller covers that cost.
Buyer agent commissions are typically built into the offer and negotiated as part of the deal. So while the contract says the buyer is responsible, it’s rare that a buyer actually has to pay out of pocket for their agent’s services.
What About Sellers? Do They Have to Pay a Buyer’s Agent?
If you’re selling a house in Sandpoint, Coeur d’Alene, or anywhere in the United States, you decide what commission—if any—you want to offer a buyer’s agent. You can technically offer nothing, but that might not be the best strategy.
Most buyers have their money tied up in down payments and closing costs. If they also have to pay their agent’s fee, they might not be able to afford your home at all. Offering to pay the buyer’s agent commission will attract more buyers to your home and should lead to more competitive offers.
Can Buyers Ask Sellers to Cover Their Agent’s Fee?
Yes.
Just like buyers can ask sellers to help with closing costs, they can also request that the seller cover the buyer’s agent fee. In a competitive market like Sandpoint, where demand for homes is strong, understanding these financial details can give both buyers and sellers an edge in negotiations.
Final Thoughts
Buyer representation agreements are now part of every real estate transaction nationwide as of August 2024, including here in Sandpoint, Coeur d’Alene, and all of North Idaho. They make sure both buyers and agents are on the same page, ensuring transparency and professionalism in every deal.
If you have questions about how this impacts your home search or sale, let’s talk. I’m here to make the process simple and straightforward.