What the NAR Settlement Means for Buyers and Why Buyer Agreements Matter

The real estate industry is evolving, and one of the most talked-about changes is the NAR (National Association of Realtors) settlement. If you’re buying or selling a home in Menlo Park, Atherton, Redwood City, or the greater Silicon Valley area, it’s important to understand how this affects you—especially when it comes to buyer agreements.

In this post, we’ll break down what the settlement means, what buyer agreements are, how they compare to seller listing agreements, and why having one in place benefits you.

What the NAR Settlement Means for Buyers and Sellers

The NAR settlement focuses on bringing more transparency to real estate commissions. Historically, sellers would agree to a commission that covered both their listing agent and the buyer’s agent. Moving forward, buyers are now expected to sign formal agreements with their agents, clarifying the services provided and how compensation will be handled.

This shift doesn’t take away buyer representation—it ensures buyers know exactly what they’re getting and how their agent is working for them.

What Is a Buyer Agreement?

A buyer agreement is a contract that formalizes the relationship between a homebuyer and their real estate agent. It typically covers:

• Services Provided: From home searches to negotiations and inspections.

• Timeframe: How long the agreement is in effect.

• Compensation: How and when the agent will be paid.

This document creates clarity, accountability, and peace of mind, so buyers know their agent is fully committed to them.

Buyer Agreements vs. Listing Agreements

Many sellers are already familiar with listing agreements. Buyer agreements are essentially the other side of the coin.

Here’s a quick comparison:

Both are about commitment, clarity, and trust.

When Should You Sign a Buyer Agreement?

The best time to sign is before you begin seriously touring homes. Initial conversations with an agent may be casual, but once you’re ready to move forward with your search, having a signed agreement ensures both you and your agent are aligned.

With the competitive Silicon Valley market—especially in places like Menlo Park and Atherton, where multiple-offer situations are common—having an agreement in place allows your agent to act quickly and confidently on your behalf.

What to Look for in an Agent Before Signing

Choosing the right agent is critical before committing to an agreement. Here are a few qualities to look for:

• Local Expertise: Do they specialize in your target neighborhoods and know the market inside out?

• Track Record: Have they successfully represented buyers in your price range?

• Communication: Are they responsive, transparent, and easy to reach?

• Resources: Do they have a trusted network of lenders, inspectors, and contractors?

• Advocacy: Are they clearly working in your best interest—not just pushing a sale?

Take time to ask questions, review the agreement, and make sure the agent is a good fit for your goals.

Benefits of Signing a Buyer Agreement

Some buyers hesitate at the idea of a contract, but these agreements are designed to protect you:

• Ensures you have a professional fully dedicated to your goals.

• Provides clarity on compensation so there are no surprises.

• Creates accountability—your agent is contractually bound to represent you.

• Outlines services so you know exactly what to expect.

Common Buyer Questions About Agreements

Does signing an agreement mean I’m locked into working with only one agent?
Yes, typically for the length of the agreement—but that’s a benefit. It ensures loyalty and commitment on both sides.

Will it cost me money upfront?
In most cases, no. Compensation is typically discussed upfront and tied to the purchase of your home.

What if I don’t end up buying a home?
That depends on the agreement’s terms. Review this with your agent before signing.

Why This Matters for You

Buying or selling real estate in Silicon Valley is one of the biggest financial decisions most people will ever make. Having clear agreements in place ensures both sides are protected and represented fairly.

Just as sellers sign listing agreements for accountability and trust, buyers now benefit from the same level of professional commitment.

Ready to Buy or Sell in Menlo Park, Atherton, or Redwood City?

Whether you’re a buyer navigating this new landscape or a seller preparing to list, I’m here to guide you every step of the way. With proven strategies, local expertise, and a track record of success, I help clients achieve their real estate goals with confidence.

And with every transaction, I proudly support my Homes for Paws initiative, donating to Pets In Need, our local animal shelter. Together, we’re not only finding the perfect home for you, but also helping pets in our community find theirs.

📲 Ready to get started? Contact me today and let’s put a plan in place for your success.

Disclaimer: This article is for informational purposes only and is not intended as legal advice. Always review the details of any agreement with your agent before signing.