Do I Need a Realtor to Buy a House?

Legally, no. You are not required to have a buyer's agent. You can research listings yourself, visit open houses, submit offers, and work with a real estate attorney to handle the contract. Some buyers do exactly that.

Practically, the answer is more nuanced — especially given changes to how agent compensation works since the August 2024 NAR settlement. This post explains who pays what, what you actually lose without an agent, and how to make a clear-headed decision rather than an emotional one.

Who Pays the Realtor When Buying a House?

This question has become significantly more complicated in the past 18 months. Under the old model, the seller paid both their own agent (the listing agent) and your agent (the buyer's agent), with the total commission — typically 5 to 6 percent — baked into the sale price. The buyer paid nothing out of pocket for their own representation.

Following the National Association of Realtors settlement that took effect in August 2024, that structure changed. The key changes:

• Buyer's agent compensation can no longer be advertised on the MLS (multiple listing service).
• Before an agent shows you any home, they must have a written buyer representation agreement signed, with their compensation explicitly stated.
• Compensation for the buyer's agent is now negotiated separately — either paid by the seller as a concession in the transaction, paid by the buyer directly, or a combination.

In practice, many sellers still offer buyer's agent compensation because it attracts more buyers. But that offer is negotiated into the contract rather than assumed. And some sellers are offering nothing, meaning if you want representation, you negotiate how it gets paid as part of your offer (for example, asking for a seller concession to cover your agent's fee).

So to directly answer the question: buyers do not automatically pay realtor fees out of pocket at closing, but in some transactions — particularly where the seller offers no compensation — you might. It depends entirely on the negotiated terms.

What Does a Buyer's Agent Actually Do?

Before deciding whether to go without one, understand what you are giving up.

A buyer's agent with real first-time buyer experience provides:

Access to off-market and pre-list properties. Not everything is on Zillow. Agents sometimes have access to properties before public listing, and seller's agents occasionally call buyer's agents in their network before the listing goes live.

Comparative market analysis. Knowing whether a listing is priced accurately requires analyzing recent comparable sales in a way that publicly available tools like Zestimate cannot reliably do. An experienced agent can tell you whether $425,000 is the right price, an overpay by $30,000, or actually below market — and they can give you that analysis before you fall in love with the house.

Contract navigation. Purchase contracts are legally binding documents. An agent who has done dozens of transactions knows which clauses need to be customized for your situation, which contingency timelines are realistic for your lender, and what addendums are typical in your market.

Negotiation. After the inspection, having someone who can frame a repair request without offending the seller — or who knows when to push for a credit versus asking for repairs — is real, tangible value.

Transaction management. From accepted offer to closing day, there are typically 20 to 40 action items: scheduling the inspection, ordering the appraisal, coordinating with the title company, reviewing the closing disclosure, arranging the final walkthrough. An agent tracks all of this.

What Are the Risks of Buying Without an Agent?

You can do all of the above yourself — but the first-time buyer's specific risk is not knowing what they do not know.

The listing agent — the seller's agent — has a fiduciary duty to the seller, not to you. If you visit an open house and express interest directly to the listing agent, that agent will be happy to help you write an offer. They may even be pleasant and helpful. But they are legally representing the seller's interests. They cannot advise you that the house is overpriced, that there are pending structural issues in the neighborhood, or that you should ask for a lower price.

In some states, dual agency — where one agent represents both buyer and seller — is legal. In a dual-agency transaction, the agent is supposed to be neutral, but in practice their primary relationship is with the seller who hired them.

The second risk is contract errors. Missed deadlines, incorrect contingency language, and improperly drafted addendums can be costly. A real estate attorney can review contracts, and in states like New York, attorneys are standard participants in the transaction anyway. In most other states, the contract is handled by agents, and errors are more common when a buyer is navigating it without experience.

When Buying Without an Agent Makes Sense

There are legitimate scenarios where going without a buyer's agent is reasonable:

• You are buying a new-construction home directly from the builder and working with the builder's sales team. Note: that sales team represents the builder, not you.
• You are an experienced buyer who has purchased multiple properties and understands the contracts in your state.
• You are buying a for-sale-by-owner (FSBO) property and have negotiated a reduced price that reflects the commission savings.
• You have a real estate attorney on retainer and are comfortable managing the process yourself.

If you are a first-time buyer none of these situations applies. The advice from experienced buyers on forums like r/FirstTimeHomeBuyer is fairly consistent: even when sellers offer reduced or no buyer's agent compensation, an experienced buyer's agent earns their fee by protecting you from expensive mistakes.

How to Interview and Hire a Buyer's Agent Post-NAR Settlement

Since buyer's agent agreements are now required before any showings, you need to understand what you are signing. Key questions to ask any agent before signing:

• What is your compensation, and how do you expect it to be paid in this transaction?
• What happens if the seller offers no buyer's agent compensation — will you still represent me, and how would we handle your fee?
• How many first-time buyers have you represented in the past 12 months?
• How many transactions have you closed in the neighborhoods I'm targeting?
• Are there any junk fees in this agreement (admin fees, transaction coordination fees billed separately)?
• What is the exit clause — if this relationship does not work out, how do I terminate?

A buyer's agent agreement typically locks you to that agent for a set period (30 to 90 days is common). If you are not satisfied with the agent's performance, know the exit terms before you sign.

A Note for UK, Canadian, Australian, and NZ Buyers

In the UK, buyers do not typically pay estate agent fees — the seller pays the agent. If you use a buyer's agent (a buyer's solicitor is standard and handles the legal side), solicitor fees are your responsibility. These are typically a few hundred to a couple thousand pounds depending on property price and complexity.

In Canada, buyer's agent commission has historically been paid by the seller (2 to 3 percent to the buyer's agent). The market is evolving post-NAR developments, but at present most Canadian buyers still have access to representation without direct out-of-pocket cost.

In Australia, buyer's agents (also called buyer's advocates) are a separate, optional service. They charge either a flat fee or a percentage of the purchase price. For a first-time buyer navigating the auction-heavy markets of Sydney or Melbourne, a buyer's advocate can add genuine value.

In NZ, buyers generally work without a buyer's agent and instead use solicitors to review contracts. If you want representation, buyer's advocates exist but are less common than in Australia.

The Bottom Line

You do not need a realtor to buy a house. But as a first-time buyer, using an experienced buyer's agent is typically the right call — not because the law requires it, but because the transaction is complex, the dollars at risk are significant, and the seller's agent is not on your side.

The shift post-NAR settlement is that compensation is now explicitly negotiated rather than assumed. That transparency is actually good for buyers — you can now ask directly what your agent charges and whether the seller will cover it as part of the deal.

The First-Time Homebuyer Toolkit includes a buyer's agent interview script with the post-NAR questions that matter, along with a red-flag checklist for reviewing buyer representation agreements before you sign.