Buyer Agency Agreements in Massachusetts: What Every Buyer Needs to Know in 2026

If you have started researching buying a home in Massachusetts in 2026, you have probably heard something about “buyer agency agreements” or been asked to sign one before scheduling showings. For many buyers — especially first-timers — this is a new experience, and the paperwork can feel like one more unfamiliar hurdle in an already complex process.

It is not a hurdle. It is actually one of the most important documents in your home purchase, and understanding it clearly before you sign will give you a significant advantage throughout the entire buying process. This guide explains what a buyer agency agreement is, what the 2024 National Association of REALTORS® (NAR) settlement changed, how compensation now works in Massachusetts, and what questions you should ask any agent before committing to a working relationship — whether you are buying in Reading, Lynnfield, Melrose, or anywhere else on the North Shore.

What Is a Buyer Agency Agreement?

A buyer agency agreement — also called a buyer representation agreement or buyer broker agreement — is a written contract between you (the buyer) and a real estate agent or brokerage that formally establishes the professional relationship. It spells out what services the agent will provide, how long the agreement lasts, what geographic area it covers, and — critically — how the agent will be compensated for their work.

Before August 2024, many buyers in Massachusetts worked with buyer agents without ever signing a formal written agreement. The agent would show homes, write offers, and guide the buyer through closing, all while being compensated through a cooperative commission paid by the seller’s side at closing. Buyers often did not see a bill, and many did not fully understand how their agent was being paid or what obligations, if any, either party had to the other.

The NAR settlement changed that. Beginning in August 2024, agents who are members of a Multiple Listing Service (MLS) — which includes virtually all practicing REALTORS® in Massachusetts — are required to have a written buyer representation agreement in place before touring any home with a buyer. Compensation must be clearly disclosed and agreed to in writing before the relationship begins.

This is not a bureaucratic formality. It is a meaningful shift in how real estate transactions work, and it benefits buyers who understand it — and can disadvantage buyers who do not.

What the 2024 NAR Settlement Actually Changed

To understand why buyer agency agreements now matter so much, it helps to understand what changed and why. The NAR settlement resolved a series of antitrust lawsuits that challenged the traditional commission structure in real estate, specifically the practice of seller-side listing agreements automatically including a cooperative commission offer to buyer’s agents through the MLS.

Under the old system, when a seller listed their home, the listing agreement would specify a total commission (typically a percentage of the sale price) that the listing broker would share with a buyer’s agent upon closing. That buyer-side commission amount was published in the MLS and visible to all buyer’s agents, who could then steer buyers toward or away from listings based on the offered compensation. Critics argued this created structural conflicts of interest and artificially inflated commission rates industry-wide.

The settlement changed two things that directly affect buyers on the North Shore:

• MLS systems may no longer publish buyer agent compensation offers. Sellers and their listing agents can still offer to pay a buyer’s agent as a seller concession, but that offer cannot be advertised through the MLS to all agents. The compensation discussion now happens directly between the parties — in the purchase and sale agreement, as a negotiated seller concession.
• Buyers must sign a written agreement before touring homes. Any agent who is an MLS member must have a written buyer representation agreement signed before showing property. This agreement must specify the compensation the buyer agrees to pay their agent, and that compensation must be a specific amount or percentage — not an open-ended promise or “whatever the seller offers.”

Together, these changes mean that buyer agent compensation is now a negotiated, disclosed item in every Massachusetts transaction — not something that happens invisibly in the background. For buyers, this is actually a positive development, even if it introduces paperwork that did not exist before.

How Buyer Agent Compensation Works in Massachusetts Now

This is the question most North Shore buyers ask first: “Does this mean I have to pay my agent out of pocket?” The honest answer is: it depends on the transaction, but in most cases, no — and here is why.

When you make an offer on a home in Massachusetts, your purchase offer can include a request for a seller concession to cover your buyer agent’s fee. This is the mechanism that has largely replaced the old cooperative commission system. Instead of the seller’s listing agreement automatically pre-committing a buyer-side commission, the buyer now explicitly negotiates for the seller to pay their agent’s fee as part of the offer terms.

In practice, across the North Shore communities where Susan works, the outcome has been largely similar to the pre-settlement structure: motivated sellers in competitive markets generally agree to seller concessions that cover the buyer’s agent fee, because doing so helps them attract the broadest possible pool of buyers. A seller who refuses any concession toward a buyer’s agent is effectively narrowing their buyer pool to buyers who are either unrepresented or willing to pay their agent out of pocket — a smaller universe in a market like Reading, Wakefield, or Andover.

That said, buyers should understand the mechanics clearly:

• Your buyer agency agreement specifies what you agree to pay your agent. This is the fee you are contractually obligated to pay if the seller does not cover it through a concession. In practice, your agent and the seller’s side will work to structure the transaction so this is covered, but having clarity on the number matters.
• Seller concessions are negotiated as part of your offer. You or your agent will include a seller concession request in the purchase offer that covers the buyer agency fee. In a highly competitive multiple-offer situation, asking for a large seller concession can make your offer less attractive. Your agent should coach you on how to balance this.
• In some cases, buyers do pay their agent directly. If you are purchasing a for-sale-by-owner (FSBO) property, a new construction sale from a builder, or a situation where the seller refuses concessions, you may need to compensate your agent directly from your own funds. Understanding this possibility before you start shopping — and factoring it into your budget — is important.
• The compensation amount is now disclosed upfront and in writing. This is genuinely better for buyers than the old system. You know exactly what your agent’s fee is before you see your first home, not after you are already emotionally invested in a purchase.

What a Buyer Agency Agreement Should Include

Not all buyer agency agreements are created equal. A well-drafted agreement protects both you and your agent — it defines the relationship clearly so there are no surprises. Here is what the agreement should specify, and what to pay attention to before you sign:

Duration of the Agreement

Buyer agency agreements specify a time period during which the agent represents you. This could be as short as a single showing or as long as six to twelve months. For a buyer actively searching on the North Shore, a three-to-six-month term is common. Be cautious of agreements with very long terms that lock you in without any mechanism for ending the relationship if it is not working. Ask about the cancellation policy before signing.

Geographic Scope

The agreement should specify which communities or areas it covers. If you are planning to look at homes in Reading, North Reading, and Wakefield, those towns should be reflected in the agreement’s geographic scope. An overly broad agreement that covers all of Massachusetts could create complications if you want to work with a different agent for a property in a community outside your primary search area.

Compensation Amount and Structure

This is the most important section. The agreement must specify a definite compensation amount — either a flat fee or a percentage of the purchase price. Under the post-settlement rules, the agreement cannot simply say “whatever the seller offers.” The amount must be stated. Typical buyer agent fees in the Massachusetts market range from 2% to 3% of the purchase price, though these are negotiable. Understand what you are agreeing to pay, and understand the mechanism by which it is expected to be covered (seller concession vs. buyer direct payment).

Services the Agent Will Provide

A professional buyer agency agreement will describe the services the agent commits to providing. These should include property searches and notifications, scheduling and attending showings, offer preparation and strategy, negotiation of purchase and sale terms, coordination of inspections and attorneys, and guidance through closing. If the agreement is vague about services, ask for specifics.

Exclusivity

Most buyer agency agreements are exclusive — meaning you agree to work only with that agent for the duration of the term. Some are non-exclusive. Understanding which type you are signing matters. An exclusive agreement provides your agent with confidence to invest significant time in your search; a non-exclusive agreement gives you more flexibility but may result in less dedicated service. Ask your agent what type of agreement they use and why.

Cancellation and Exit Terms

What happens if the relationship is not working? A fair buyer agency agreement should include a reasonable mechanism for either party to end the relationship. This might be a written notice requirement of a few days, or a mutual cancellation clause. Avoid agreements that are entirely one-sided in terms of exit provisions.

What to Ask Any Agent Before Signing a Buyer Agency Agreement

The new requirement for written buyer representation agreements is actually an opportunity for buyers to have a frank conversation about what they are getting from their agent relationship. Here are the questions every North Shore buyer should ask before signing:

• “What is your fee, and how will it be covered in a typical transaction?” You want a clear number and a clear explanation of whether it will come from a seller concession, a split, or direct buyer payment. No vague answers.
• “How many buyers are you currently working with, and will I have dedicated attention?” An agent managing fifteen active buyer clients simultaneously may not be able to respond to new listings at 7 a.m. in a fast-moving market like Lynnfield or Andover. Know what you are committing to.
• “How deep is your knowledge of the specific towns I am targeting?” There is a meaningful difference between an agent who “covers all of Massachusetts” and one who has closed dozens of transactions in Reading and Wakefield specifically. Hyperlocal knowledge — knowing what a particular street sells for, understanding school district boundaries, recognizing a well-priced listing the moment it hits the market — is a genuine competitive advantage in the North Shore market.
• “What is your approach in a multiple-offer situation?” Multiple-offer situations are common across the communities Susan serves. Ask your potential agent to walk you through their philosophy and strategy for helping buyers compete and win without overpaying or waiving critical protections.
• “What happens if I want to cancel the agreement?” Ask specifically about the cancellation mechanism before you need it. A good agent will have a clear, fair answer.
• “Can you walk me through a recent transaction you completed in my target area?” A track record of recent closings in Reading, North Reading, Wakefield, Lynnfield, or Andover is the best evidence of the local expertise you need in today’s market.

How This Affects North Shore Buyers Specifically

The North Shore Massachusetts market — the communities that Susan Gormady serves day in and day out — has some characteristics that make the buyer agency agreement particularly important to understand before you begin searching.

Competition Moves Fast

In towns like Reading, Wakefield, and Lynnfield, well-priced homes regularly receive offers within days of listing — sometimes within hours. Having a signed buyer agency agreement already in place means your agent can move immediately when the right property appears. There is no administrative delay, no conversation about paperwork at the moment you need to be focused on strategy. The relationship is established, the terms are clear, and your agent can act.

Seller Concessions Are Routine in This Market

North Shore sellers are experienced and informed. In a competitive market where buyers are abundant, agreeing to a seller concession that covers the buyer’s agent fee is a standard part of attracting strong offers. Buyers working with Susan have found that the compensation structure rarely creates friction in well-priced transactions — because motivated sellers understand that limiting their buyer pool by refusing concessions costs more than the concession itself.

In Multiple-Offer Situations, Clarity Matters

When you are competing against other buyers for a home in Andover or North Reading, your offer package needs to be clean and professional. Having a signed buyer agency agreement and a current mortgage pre-approval in hand signals to the listing agent — and through them, to the seller — that you are a serious, prepared buyer. It is a small but real competitive advantage in a market where first impressions matter.

New Construction Requires Extra Attention

Buyers considering new construction in Wilmington or other communities with active builder activity should pay particular attention to buyer representation. Builder sales offices represent the builder, not you. Having your own buyer’s agent, with a signed representation agreement in place before you visit the sales office, ensures you have professional representation in a transaction where the other side has significant advantages in terms of information and experience.

Common Misconceptions About Buyer Agency Agreements in Massachusetts

Since the August 2024 settlement changes took effect, several misconceptions have circulated among buyers. Here are the most common ones — and the accurate picture:

“Signing a buyer agreement means I have to use that agent for every home I look at forever.”

Not true. Buyer agency agreements have defined terms — a specific time period and a specific geographic area. A well-structured agreement will also have a reasonable cancellation clause. You are not locked in indefinitely. You are entering a professional relationship with defined boundaries, just as you would with any service provider.

“I can avoid paying a buyer agent by working with the listing agent directly.”

This is technically possible — the listing agent can act as a dual agent representing both buyer and seller, or as a transaction coordinator with no fiduciary duty to either party. But the listing agent’s primary relationship is with the seller. In a competitive market like the North Shore, giving up professional advocacy on your side of the transaction to avoid a buyer agent fee is, in most cases, not a good trade. The mistakes buyers make without representation — overpaying, waiving critical contingencies, missing inspection red flags, misunderstanding P&S terms — typically cost far more than the agent fee they were trying to avoid.

“The new rules mean buyers will always pay their agent out of pocket.”

In most North Shore transactions, this has not been the outcome. Seller concessions covering the buyer agent fee remain common because motivated sellers want the broadest possible buyer pool and understand that a well-represented buyer is often a better buyer: pre-approved, informed, and able to move through the transaction efficiently. The mechanics have changed, but the economic outcome for most buyers has been similar to the pre-settlement structure.

“All buyer agency agreements are the same.”

They are not. The duration, geographic scope, cancellation terms, and compensation structure can vary significantly from one agreement to the next. Read the agreement, ask questions, and do not sign something you do not fully understand. A good agent will want you to understand every word before you sign — because a client who fully understands the relationship is a better partner throughout the buying process.

What Working with Susan Gormady as Your Buyer’s Agent Looks Like

Susan has been helping buyers find homes on the North Shore for years, and the 2024 rule changes have not altered the core of how she approaches buyer representation — only the documentation that formalizes it at the outset.

Before touring any home, Susan will sit down with you — in person or virtually — to review the buyer agency agreement, explain exactly how her fee works, and answer every question you have about the process. There are no surprises and no pressure. The goal of that initial conversation is to give you complete clarity so that when you find the right home in Reading or Andover or North Reading, you are focused entirely on the house — not on paperwork.

Her buyer representation includes property searches customized to your criteria and budget, real-time notifications of new listings in your target communities, thorough in-person showings with honest assessments of each property, offer strategy developed specifically for the competitive North Shore market, full coordination with your lender, attorney, and inspector through closing, and clear communication at every step. That is what the buyer agency agreement formalizes — a professional commitment to your success in one of the most important financial decisions of your life.

The Bottom Line on Buyer Agency Agreements in Massachusetts

The 2024 NAR settlement and the written buyer representation requirements it produced are, at their core, a transparency improvement for buyers. You now know before your first showing exactly who represents you, what they commit to doing, and what they will be paid. The old system obscured those facts in ways that sometimes worked against buyer interests.

On the North Shore, in markets like Reading, Wakefield, Lynnfield, and Andover, where homes move quickly and competition is real, having a signed buyer agency agreement in place and a trusted agent committed to your search is not a bureaucratic requirement — it is a genuine strategic advantage. The buyers who understand this and embrace the formalized relationship are better positioned than those who try to navigate the process informally.

If you have questions about buyer agency agreements, how compensation works in a specific scenario, or what it looks like to start a buyer relationship with Susan, the best next step is a free, no-obligation conversation. There is no pressure, no commitment, and no paperwork until you are ready — just an honest discussion about your goals and what the current Massachusetts market means for your search.