Since August 2024, buyers who work with an agent sign a written agreement before touring homes with them. It is a good thing: it puts everything in plain sight, including what your agent will do for you and how they are paid.
What the agreement covers
- Services. Home search, tours, market advice, offer writing and negotiation, and guidance through escrow.
- Term. How long the agreement lasts, and how either side can end it.
- Compensation. How your agent is paid. This must be stated clearly in the agreement, and it is negotiable.
How agents are paid
Agent compensation is not set by law. It is agreed between you and your agent in the written agreement. In many sales the seller offers to cover some or all of it, and it can also be negotiated as part of the offer or paid by the buyer. Your agent should explain each option and how it affects your costs before you sign.
What a great buyer's agent does
- Explains the market for your specific ZIP code and price range, with real data.
- Helps you build a strong offer and negotiate terms as well as price.
- Coordinates inspections, the lender and escrow so deadlines never slip.
- Tells you the truth, including when a home is not right for you.
- Answers the phone.
Questions to ask any agent
- How do you get paid, and what happens if the seller does not offer compensation?
- How will you keep me updated?
- What is your experience with the kind of home and area I want?
Rudy and the Patti and Jeff McKelvey Team welcome all of these questions, and the agreement is explained line by line before you sign.
This is general information, not legal advice. Your agreement controls, so read it carefully and ask questions.
More in Buyer Guides
- First-Time Buyer: The 10 Steps — A friendly checklist from first budget to keys, built for people buying for the first time.
- From Accepted Offer to Keys: Your Day-by-Day Timeline — What happens in the roughly 30 days after your offer is accepted, and what to do each week.
- Loan Types and 2026 Limits: Conventional, FHA, VA and Jumbo — A simple tour of your loan options, with this year's official San Diego County and Orange County limits.
- Down Payment Help: Programs Worth Checking — Where buyers look for down payment and closing cost help in California and San Diego County.
- Property Taxes, Mello-Roos and HOA Dues: Know Your Monthly Number — How California property tax works, what special assessments and HOA dues are, and how to budget them.
- Homeowners Insurance: Get Your Quote Early and Keep It Simple — What a home policy covers, how to shop quotes, and why lining it up early makes closing smooth.
- Inspections and Disclosures: Your Information Advantage — The reports and forms that tell you everything about a home, and how to use them with confidence.
- Writing an Offer That Wins (and Still Protects You) — How to build an offer that stands out through price, terms and timing, with your interests protected.
- Closing Costs Explained — Every line on your closing statement, in plain English, with realistic ranges.
General information only, not legal, tax or financial advice. Programs, rules and limits change, so confirm details with your lender, escrow officer, attorney or tax professional.