Do I Still Have to Pay a Buyer's Agent Commission in Colorado?

It depends. Since the NAR settlement took effect in August 2024, buyers are no longer automatically shielded from paying their agent's commission. Whether you end up paying anything out of pocket depends on what the seller offers and what you negotiate.

Under the old system, sellers were required to offer buyer's agent compensation through the MLS, and that offer covered the buyer's agent in virtually every transaction. That requirement is gone. The result is more variability and more responsibility on buyers to understand how their agent expects to be paid.

What Typically Happens Now

In the Denver metro market, many sellers still offer buyer's agent compensation. It is no longer required, but sellers who want to attract the most buyers often continue to offer it. When the seller offers enough to cover your agent's agreed rate, you pay nothing out of pocket for representation.

Where it gets complicated:

• If the seller offers less than your agent's agreed rate, you may need to pay the difference or negotiate for the seller to cover it as a concession in your offer.

• If the seller offers nothing, you either pay your agent directly or build the compensation request into your purchase offer.

• Some loan types have restrictions on how buyer's agent compensation can be structured. FHA and VA buyers should confirm with their lender how this works.

How to Protect Yourself as a Buyer

The most important thing you can do is understand what your buyer's agent expects to earn before you start touring homes. You will be asked to sign a buyer representation agreement that spells this out. Read it carefully.

Ask your agent directly: What is your rate? If the seller does not offer enough to cover it, what happens? Will you reduce your rate, or will I need to pay the difference? A good agent will answer these questions clearly before you sign anything.

The LOGO Real Estate Buyer Model

At LOGO Real Estate, the List One Get One model is designed specifically for buyers who are also selling. When you sell your home through LOGO Real Estate at 1%, and then buy your next home with LOGO Real Estate, that 1% comes back to you at closing. It is a meaningful credit toward your next move.

If you are buying in Highlands Ranch or anywhere in the Denver metro area and want a clear picture of how buyer representation and compensation work right now, reach out for a no-pressure conversation.

Kevin Hays | LOGO Real Estate | 303-683-0008 | www.logorealestate.com