What representation costs you, in plain language.
Most agent websites are vague about this, which is exactly why buyers end up asking about it late and awkwardly. Here is how buyer-agent compensation actually works in Colorado, what the 2024 rule changes did and didn't do, and what you should ask any agent before you sign anything.
- Set by law?
- No — always negotiable
- Agreed when?
- In writing, before touring
- Who pays?
- A term of the deal, negotiated
- Dual agency?
- Never — buyer-only
What actually changed, and what didn't
Two things changed for buyers in 2024. Offers of compensation to buyer brokers can no longer be published on the MLS, and buyers working with an agent who participates in an MLS must sign a written buyer agreement before touring a home. What did not change is more important: compensation was always negotiable, and it still is. No law, association, or brokerage sets a rate. Anyone who tells you a number is standard is describing a habit, not a rule. The practical effect is that a conversation which used to happen implicitly — or not at all — now happens explicitly, in writing, at the start. That is better for you. It means you know what you are agreeing to before you have fallen in love with a property and lost your leverage to ask.
Three ways it typically gets paid
- The seller or listing brokerage covers it. Still common. It is now negotiated directly rather than advertised on the MLS, which mostly changes who makes the phone call.
- A seller concession in your offer. Compensation is handled as a term of the deal, the same way a repair credit or a rate buydown would be. This gets addressed before you write an offer, not discovered afterward.
- You pay it directly. Least common, but it happens, and it is a legitimate structure — particularly on off-market purchases.
In every case the ceiling is whatever your buyer agency agreement says. Your agent cannot collect more than that amount, no matter what a seller offers.
What is in the agreement
Who the agent represents, what services are included, how long it runs, whether it is exclusive, and a specific and objectively determinable amount of compensation with a statement of who is expected to pay it. That last part is the one to read carefully — whatever the seller offers is not a specific amount, and it is not an acceptable term.
How I handle it
We settle it on the first call, before touring anything, and you get the agreement in writing with the number filled in and explained in plain English. I will tell you what I think is fair, what is negotiable, and what happens in each of the three scenarios above. If a short initial term makes you more comfortable while you see how working together goes, ask for one — that is a reasonable request and I will say yes. I also do not take listings in these markets. Buyer-only means I am never on both sides of your transaction, never collecting from both, and never quietly steering you toward inventory I represent. And I take no referral fees from the vendors I introduce you to after closing.
General information for Colorado residential transactions, not legal advice. Rules, forms, and practices change, and specifics vary by brokerage and transaction — your written agreement and the Colorado Real Estate Commission's approved forms govern. Consult your attorney for advice about your situation.
Compensation questions
Do buyers pay their agent's commission in Colorado?+
It depends on how the transaction is structured. Compensation is negotiable and always has been. In practice it is commonly covered by the seller or the listing brokerage, sometimes covered through a seller concession negotiated as part of your offer, and sometimes paid directly by the buyer. What changed in 2024 is that the arrangement now has to be written down and agreed with your agent before you tour homes.
What changed in 2024?+
Offers of compensation to buyer brokers can no longer be published on the MLS, and buyers working with an agent who participates in an MLS must sign a written buyer agreement before touring a home. Neither change set any rate or made anything standard.
What has to be in a buyer agency agreement?+
At minimum, who the agent represents, what services are included, how long the agreement lasts, whether it is exclusive, and a specific and objectively determinable amount of compensation with a statement of who is expected to pay it. Your agent cannot receive more than the amount your agreement specifies.
Can I negotiate the amount, or the length of the agreement?+
Yes, both. Rates are not set by law, by any association, or by any brokerage's policy, and a short initial term is a perfectly reasonable request.
What if the seller isn't offering to pay a buyer's agent?+
It is handled in the offer, as a seller concession the same way a repair credit would be, or you can pay it directly. It is a term of the deal, addressed before you write.
Do you take referral fees or a listing side in my transaction?+
No to both. I do not take listings in these markets, and I do not accept compensation from the vendors I introduce you to after closing.