If you’re buying or selling a home in Washington, you may have heard that the rules around real estate agents and compensation have changed. The good news is that the changes are fairly simple once you break them down.

The updated Washington real estate brokerage pamphlet explains the basic rules and responsibilities for buyers, sellers and real estate brokers.

Buyers: Expect a Buyer Agreement Before Touring Homes

If you are working with a real estate agent to buy a home, you will be asked to sign a written buyer services agreement.

The agreement explains the relationship between you and your agent, including how long the agreement lasts, whether it is exclusive, and how your agent will be compensated.

Under current MLS rules, buyers should expect to have this agreement in place before touring homes with their agent.

This doesn’t mean you’re agreeing to one particular commission rate. Compensation is negotiable, and the agreement spells out what you and your agent have agreed upon.

Who Pays the Buyer’s Agent?

This is where there is often confusion.

The updated Washington pamphlet states that compensation in a real estate transaction can be paid by:

• The buyer
• The seller
• A third party

So, the seller can still pay the buyer’s agent.

What has changed is how that compensation is communicated.

Sellers Can Still Pay Buyer Agents

A seller can choose to contribute toward the buyer agent’s compensation, but that offer can no longer be advertised as an offer of compensation on the MLS.

Instead, it can be negotiated as part of the buyer’s offer.

For example, a buyer could write an offer asking the seller to contribute a specific amount toward their buyer agent’s compensation. The seller can agree, negotiate the amount, or decline.

That becomes one of the terms considered as part of the overall offer.

The Washington pamphlet also requires brokers to disclose in writing any compensation offered by one party or real estate firm to a firm representing another party.

What Buyers Really Need to Know

The biggest takeaway is this:

Don’t assume that you have to personally pay your agent’s entire compensation if a seller doesn’t offer it upfront.

There are several ways an experienced buyer’s agent can structure and negotiate compensation as part of the transaction.

That could include negotiating for the seller to contribute toward the buyer agent’s compensation within the purchase offer, depending on the circumstances and the seller’s willingness to agree.

Your agent can help you understand your options before you make an offer.

What Sellers Need to Know

Sellers also have more flexibility than many people realize.

You don’t have to automatically offer buyer agent compensation upfront. But if a buyer requests that you contribute toward their agent’s compensation as part of their offer, you can consider that request along with everything else:

Purchase price + financing + contingencies + closing date + repairs + concessions + buyer agent compensation.

It’s the whole offer that matters.

The Bottom Line

The rules have changed, but buying a home hasn’t become impossible or more complicated than it needs to be.

Buyers: You will have a written agreement with your agent that explains the relationship and compensation before touring homes.

Sellers: You can still agree to pay or contribute toward a buyer agent’s compensation, but it is no longer advertised through the MLS. It can be negotiated as part of an offer.

And most importantly, buyers still have options.

If a seller doesn’t offer buyer agent compensation upfront, that doesn’t necessarily mean you’re on your own. There are several ways your agent can negotiate compensation into the purchase contract. The key is having that conversation with your agent early so you understand your options and can make an informed decision.

This article is for general informational purposes and is not legal advice. For questions about how Washington law applies to your specific transaction, consult your real estate broker or a qualified attorney.