Do Buyers Pay Realtor Fees in California? Understanding Buyer Broker Agreements in 2025
- Taylor-Ann Bergeron
- 3 days ago
- 4 min read
Buyer’s Real Estate Tips from a Local Ladera Ranch Agent
Published: September 2025
Table of Contents:
What Is a Buyer Broker Agreement in California?
If you’re buying a home in California, there’s one key document you’ll need to sign before receiving meaningful services from a licensed real estate agent: the Buyer Broker Agreement (BBA).
This agreement sets the terms of your partnership with your agent—outlining how they’re compensated, what services you’ll receive, and how your working relationship functions. Think of it as the “engagement ring” of the home-buying process—formal, but still flexible.
Why the Buyer Agreement Matters
Until recently, sellers had clear contracts with their listing agents, while buyers often worked in a gray area. As of August 2024, new nationwide rules require all buyers to sign a BBA before touring homes, writing offers, or getting pricing advice.
This change:
Provides clarity and professionalism.
Ensures buyers understand how agents are paid.
Helps you make confident, informed choices about representation.
Who Pays the Realtor Fees?
Traditional Compensation
In California, sellers have traditionally offered to pay both the listing and buyer’s agents. Here’s how it works:
Seller agrees to a commission when listing the property.
That commission is typically split between the seller’s agent and buyer’s agent.
The buyer doesn’t write a separate check—but because it’s included in the home’s price, you’re still indirectly paying through your mortgage or cash purchase.
This system makes buyer representation widely accessible without additional out-of-pocket costs.
What If the Seller Offers Less (or Nothing)?
With the new rules, sellers aren’t obligated to offer buyer agent compensation. If that happens, you may:
Pay your agent directly at closing.
Build compensation into your offer price.
Negotiate creative terms with your agent and the seller.
Transparency is the goal—buyers now see these scenarios upfront rather than being surprised later.
Buyer FAQ: Can I Work with Multiple Agents?
Yes—you can. California buyers can choose between:
Exclusive Agreements: You work with one agent exclusively (common for buyers who want full loyalty and commitment).
Non-Exclusive Agreements: You can work with multiple agents in different areas. For example, one agent may specialize in Ladera Ranch while another covers Mission Viejo.
Either way, your agreement should clearly explain what happens if you switch agents or purchase with someone else.
What Sellers Need to Know in 2025
If you’re selling a home in California, here’s what’s new:
Your listing agreement now clearly outlines whether you’ll offer compensation to a buyer’s agent.
You can:
Offer a full commission,
Let buyers request commission in their offer, or
Offer no compensation at all.
Keep in mind: your decision could impact how attractive your property is, especially for FHA or VA buyers who may not be allowed to cover certain fees themselves.
What This Means for Today’s Market
These changes create a more professional, transparent real estate process.
For buyers:
You’ll know exactly how your agent is paid.
You’ll sign an agreement upfront for clarity and protection.
You may be asked to cover costs if a seller doesn’t.
For sellers:
Your strategy on buyer agent compensation can affect the number of offers you receive.
You’ll have more flexibility in structuring your listing.
Clearer communication helps you attract serious, qualified buyers.
Key Takeaways for Buyers and Sellers
Buyers in California must sign a Buyer Broker Agreement before working with an agent.
This document clarifies services, fees, and responsibilities.
Sellers still often offer compensation—but it’s no longer guaranteed.
Buyers should be prepared to negotiate or cover fees directly.
Local agents can guide you through these changes so you’re never caught off guard.
Work with a Neighborhood Expert
Navigating the evolving California real estate market doesn’t have to be stressful. As a local Ladera Ranch real estate agent, I specialize in helping buyers and sellers understand their options, negotiate fairly, and move with confidence.
If you’re ready to start your journey—or just want to learn more about how these changes affect you—let’s connect.
Frequently Asked Questions About Buyer Broker Agreements in California
Do buyers pay realtor fees in California?
In most California home sales, sellers offer compensation that covers both the listing agent and the buyer’s agent. However, because these costs are factored into the home’s purchase price, buyers technically pay indirectly through their mortgage or cash purchase. If a seller doesn’t offer buyer agent compensation, the buyer may be required to cover the fee directly.
Is a Buyer Broker Agreement exclusive in California?
Not always. Buyers can sign either:
Exclusive Agreements (one agent represents you fully), or
Non-Exclusive Agreements (you can work with more than one agent in different markets).
Your agreement should clearly state the type and explain how commissions are handled if you switch agents.
Can I negotiate my buyer’s agent commission in California?
Yes. One of the benefits of the new system is transparency. You can discuss commission rates, flat fees, or other terms before signing your Buyer Broker Agreement. This ensures you only pay for the level of service you agree to.
Do sellers in California still pay buyer’s agent commissions?
Yes—most sellers still offer compensation to attract buyers. But under new rules, they’re not required to. A seller may offer full commission, partial compensation, or none at all. Their choice can influence how appealing their property is to buyers.
What happens if the seller doesn’t offer commission?
If a seller offers no buyer agent compensation, buyers may:
Pay their agent directly at closing,
Increase their offer to include commission, or
Negotiate another arrangement with their agent.
Your Buyer Broker Agreement will explain your options before you begin home shopping.
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