Recently, I sat down for coffee with a potential buyer from out of state. He seemed hesitant, and once we started talking, I understood why—he had read about the NAR lawsuit and thought he’d have to sign a contract just to speak with me. Once I cleared up that misconception, I realized more buyers could benefit from understanding how real estate has changed and what it means for Washington buyers and sellers.
The NAR Lawsuit in a Nutshell
The lawsuit against the National Association of Realtors (NAR) claimed the organization was fixing commission rates, making it seem like 3% for both buyer and seller agents was a standard when, in reality, commission rates have always been negotiable.
Here in Washington, we’re a bit ahead of the curve. The Northwest Multiple Listing Service (NWMLS) is independently owned and not part of the NAR lawsuit. Transparency has always been key here, and we’ve led the way in how real estate transactions should ideally work.
Enter the Buyer’s Agency Agreement
In response to industry changes, a Buyer’s Agency Agreement is now required almost everywhere to increase transparency around commissions. NWMLS, on its own accord was the first to implement this. This contract clarifies that there’s no standard commission rate—it’s negotiable. The buyer’s agent states the commission they will request from the selling side, and this can be adjusted and amended for each transaction.
In Washington, the agreement must be signed before any real estate services are provided (like going on tours), but with a catch: it should be signed “as soon as reasonably possible.” This gives agents and buyers a little flexibility to get to know each other first. Personally, I wouldn’t feel comfortable signing a contract with someone I just met, and to be honest, I don’t want to be tied to every buyer I meet right off the bat either.
Flexibility in the Agreement
Fortunately, there is some flexibility in the contract itself. The location covered by this agreement can be as specific or broad as you want. You can limit it to just one property or expand it to a neighborhood, county, or even state.
Also, there’s an option in the Buyer’s Agency Agreement for exclusive or non-exclusive agency. An exclusive agreement means you’ll only work with one agent, while a non-exclusive agreement allows you to work with multiple agents.
Keep in mind, if you sign an exclusive Buyer’s Agency Agreement, for instance with a listing agent at an open house (even for one specific house), it can last for up to 60 days, meaning you may owe that agent commission even if you work with another agent later.
Side note – if you are represented by the listing agent as a buyer, this is called dual agency. It severely limits the agent’s ability to negotiate on anyone’s behalf and negates much of the purpose of having representation in the first place. This is why I rarely engage in dual agency unless it is a unique circumstance.
So, Can You Pay Less?
With all this talk of commissions being negotiable, the big question is: Can you pay less? The answer is, and has always been, yes—but you get what you pay for.
Low commission agents might be enticing, especially if you’re hoping to save money upfront. However, lower commission agents often offer fewer services. You might get minimal
involvement—think basic paperwork, generic advice, and less personalized support. For example, companies like Redfin offer 2% commissions, but their services are minimal and almost no involvement in strategic negotiations. Often these agents will not even write up your contract but pass it on to an employee, seriously hindering the ability to win you benefits from unique situations.
The downside of working with low-commission agents is that without their in-depth engagement, you could miss out on the opportunity to save money through strategic negotiations or to be alerted to potential problems in a property. As a result, you may lose more money in the long run—either by overpaying or by failing to address costly repairs or issues that arise after the sale.
What You Get for 3%
When I represent a buyer, I go far beyond handling paperwork. I take the time to thoroughly research the property’s history, utility services, any past renovations, and help arrange inspections while negotiating repairs. I’m not just checking the basics—I dive deep into county records, septic maps, and assess critical areas like flood zones and wetlands. I also look into neighborhood details such as water supply reliability and drainage patterns.
If the situation calls for it, I recommend specialist inspections, such as geotechnical assessments, mold remediation, or water testing. Should any concerns arise from these inspections, I assist in gathering professional estimates from reputable contractors for repairs like roofing, crawl space drainage, or septic system issues.
Beyond that, I can offer recommendations on energy efficiency assessments, researching potential tax incentives, or grants for green upgrades. I’ve even helped clients look into the feasibility of future home expansions or renovations, ensuring any updates align with zoning regulations.
My goal is twofold: to ensure you have all the information needed to make a confident, informed decision and to make the entire transaction as smooth as possible.
My services pay for themselves. For example, in a recent transaction on an $825,000 home, through timing and negotiation, we were able to close at $730,000. After inspection, I negotiated an additional $25,000 off for repairs, saving my clients a total of $145,000—or 17%. The right agent can save you far more than their commission.
Higher commission agents often work tirelessly to find off-market opportunities, provide deep research on neighborhoods and property values, and take extra time to negotiate the best possible deal.
How I Handle Commissions
I’m upfront with my clients: I typically work for 3%, sometimes 2.5%, depending on what the seller is offering. In Washington, the commission offered is posted on the MLS, so it’s transparent. If a seller offers less (say, 1%), I’ll discuss it with my buyer, and they can decide if they want to proceed, knowing they may have to cover the difference.
That said, I’ve never had a buyer pay any portion of my commission out of pocket. Every seller I’ve encountered understands that offering a higher commission makes their home more attractive to buyers, which can lead to a quicker sale at a higher price.
Final Thoughts
I’m grateful transparency has become a bigger part of the real estate process, but I understand signing a contract can feel intimidating. Luckily, here in Washington, commission rates are clear from the start. Just make sure your agent communicates openly about their fees and the services they offer.
A good real estate agent isn’t just a tour guide—they’re your advocate in negotiations and a critical part of ensuring the home you buy is a sound investment.
