GLOSSARY — REAL ESTATE TERMS

Buyer's Agent

A buyer's agent is a licensed real estate professional who represents the interests of the home buyer in a transaction -- negotiating price and terms, coordinating inspections, and managing the purchase through closing on the buyer's behalf.

What a buyer's agent actually does

A buyer's agent works exclusively on the buyer's side of a transaction -- searching for and evaluating properties, scheduling showings, researching comparable sales, drafting and negotiating the offer, and coordinating inspections, disclosures, and the closing timeline. This is distinct from a listing agent, who represents the seller and owes the buyer no duty of advocacy.

How buyer-agent compensation works in California

Since the 2024 NAR settlement, sellers are no longer required to offer buyer-agent compensation, and buyers must sign a written buyer representation agreement before touring homes that specifies how their agent is paid. When a seller does still offer compensation, a traditional buyer's agent keeps a percentage, typically 2.5% to 3%. A flat fee buyer's agent instead charges a fixed amount and returns any amount the seller offers above that fee to the buyer as a closing cost credit.

How this looks in practice

On a $1.2M Orange County purchase, Roman's flat fee is $9,250 (the tier that applies at or above $1.5M starts higher; this example sits in the $7,250 tier since it's under $1.5M). If the seller offers 2.5% ($30,000) in buyer-agent compensation, the roughly $22,750 difference is negotiated as a closing cost credit -- the same negotiation and paperwork a traditional buyer's agent handles, just with a different fee structure underneath it.

WHAT TO CONFIRM BEFORE TOURING HOMES

Sign your buyer representation agreement before your first showing
Ask upfront how your agent is paid if the seller offers no compensation
Confirm the closing cost credit amount at your target price point
Get your agent's fee and duties in writing, not verbally

Do I have to pay my buyer's agent directly?

It depends on what the seller offers and what your buyer representation agreement specifies. If the seller offers buyer-agent compensation that covers your agent's fee, you typically don't pay out of pocket. If it doesn't fully cover the fee, the gap is negotiated in the agreement.

Can a buyer's agent also represent the seller?

Only through dual agency, which requires informed written consent from both parties -- see the dual agency glossary entry for how that works and what it means for representation.

What's the difference between a buyer's agent and a flat fee buyer's agent?

A traditional buyer's agent is typically paid a percentage of the sale price. A flat fee buyer's agent, like Roman, charges a fixed amount regardless of price and returns any excess seller-offered compensation to the buyer as a credit.