Short answer: A local buyer's agent helps first-time buyers find the right home, avoid costly mistakes and negotiate a better deal. Today, agent pay is spelled out in a written buyer agreement you sign before touring homes. In many Houston deals, the seller still agrees to pay some or all of the buyer agent's fee, so many buyers pay little or nothing out of pocket. But it's negotiable, so you should understand how it works.

What changed in 2024

After a national legal settlement involving the National Association of REALTORS^®, new rules took effect in August 2024:

• Buyers sign a written agreement with their agent before touring homes. It states what the agent will do and how much they'll be paid.
• Offers of buyer agent pay are no longer posted on the MLS.
• Agent pay is fully negotiable.

What hasn't changed: sellers can still offer to cover the buyer agent's fee, and buyers can ask the seller to pay it as part of their offer.

How buyer agents get paid in Houston

Common ways it works:

1. Seller pays: The seller or builder agrees to pay your agent's fee. This is still very common, especially on new construction and homes that have been on the market a while.
2. Seller concession: You ask the seller for a credit that covers your agent's fee and/or closing costs.
3. Buyer pays: If the seller won't cover it, you pay the amount in your buyer agreement, or the difference.

With Houston homes taking about 54 days to sell on average, many sellers are open to covering buyer costs. Your agent should explain all of this up front.

What a good local agent does for you

• Knows the neighborhoods: Flood history, MUD taxes, HOA rules, school zones and commute times that you won't find on a listing site.
• Prices your offer right: Pulls recent sales so you don't overpay.
• Negotiates: Price, repairs, closing costs, rate buydowns and builder incentives.
• Handles the Texas contract: The TREC contract, option period, deadlines and amendments.
• Manages inspections and repairs: Helps you decide what to ask for and what's normal wear.
• Keeps everyone on track: Lender, title company, inspectors and the other agent.
• Connects you with programs: Down payment assistance and lenders who handle them.

New construction? Bring your own agent

The sales rep at a builder's model home works for the builder, not you. Bring your own agent on your first visit. Many builders require it in order to pay your agent's fee, and your agent can help you negotiate upgrades and incentives.

Questions to ask before you sign a buyer agreement

• What services do you provide?
• How are you paid, and what happens if the seller won't cover it?
• How long does the agreement last, and can I end it?
• Which areas and price ranges do you know best?
• How many first-time buyers have you helped?

Next steps

Read our step-by-step guide to buying your first home in Houston, or start searching homes for sale.

Agent compensation is negotiable and not set by law. This article is general information, not legal advice.