What Is Buyer's Representation?

Buyer's representation — also called buyer's agency — is a formal legal relationship in which a real estate agent agrees to represent the interests of the buyer in a real estate transaction.

What buyer's representation means in practice

A buyer's representative has a fiduciary duty to the buyer. This means the agent is legally obligated to act in the buyer's best interest — disclosing material information that affects the buyer's decision, maintaining the buyer's confidentiality in negotiations, presenting the buyer's offer in the most favorable way, and advocating for the buyer's interests throughout the transaction.

Buyer representation agreement: Since the NAR settlement changes took effect in 2024, buyers are typically required to sign a written buyer representation agreement before touring properties. This agreement specifies the agent's compensation, the duration of the representation, the geographic scope, and the obligations of both parties.

Why buyer's representation matters in luxury transactions

In transactions above $5 million, the complexity of due diligence, negotiation, and closing is significantly greater than in typical residential transactions. A buyer's representative who specializes in luxury real estate brings market knowledge, negotiation experience, and professional relationships that a buyer acting without representation cannot replicate. The value of skilled buyer representation in a $10 million negotiation — where even a 1% price improvement represents $100,000 — typically far exceeds the cost of representation.