What Is a Buyer Agency Agreement—and Do You Really Need One in Michigan?

Quick Answer

A Buyer Agency Agreement is a written contract between a home buyer and a real estate agent that outlines how the agent represents the buyer, their fiduciary duties, and how compensation works. In Michigan, signing a buyer agency agreement clarifies who is working for you—especially before touring homes in competitive markets like Birmingham, Bloomfield Hills, Royal Oak, and Rochester.

The Complete Picture: What a Buyer Agency Agreement Really Means

A Buyer Agency Agreement formalizes the relationship between you and your real estate agent. Once signed, your agent legally represents your best interests, not the seller’s.

This agreement became more important—and more common—after recent industry changes emphasizing transparency around representation and commissions.

What the Agreement Covers

Typically, a Buyer Agency Agreement outlines:

• Who the agent represents (you, the buyer)

• The length of the agreement

• The geographic area (Oakland County, specific cities, or MLS regions)

• Compensation terms

• Agent duties, including:

  • Negotiating price and terms

  • Providing market data and advice

  • Maintaining confidentiality

  • Disclosing material facts

Once signed, your agent owes you fiduciary duties—loyalty, obedience, disclosure, confidentiality, and reasonable care.

Why Buyer Agency Matters in Today’s Michigan Market

In many Oakland County transactions, buyers assume the agent showing the home automatically represents them. That’s not always the case.

Without a Buyer Agency Agreement:

• The agent may be working for the seller

• You may not receive negotiation guidance tailored to you

• Your financial interests may not be fully protected

With an agreement in place, you have clarity and confidence—especially in fast-moving markets like Bloomfield Township or downtown Birmingham, where strategy matters.

Key Insights for Home Buyers

• You are not required to sign immediately, but representation must be clarified before serious home tours or offers

• Buyer agency protects your pricing strategy, not just access to listings

• The agreement does not mean you are locked in forever—terms are negotiable

• It brings transparency to how agents are compensated

• It ensures your agent is legally working for you, not both sides

How Buyer Agency Agreements Affect Compensation

One of the most common questions buyers ask is about cost.

What Buyers Should Know

• Compensation is clearly disclosed upfront

• In many cases, the seller still offers compensation, but this is no longer assumed

• If a seller does not offer compensation, options are discussed before you make an offer

• There are no surprise fees at closing

A good buyer’s agent explains these details clearly before you ever sign.

Action Steps for Michigan Home Buyers

1. Ask who the agent represents before touring homes

2. Review the Buyer Agency Agreement carefully—terms are flexible

3. Discuss compensation and expectations upfront

4. Choose an agent who explains the agreement clearly

5. Work with someone experienced in your target market, whether that’s Royal Oak, Rochester, or Bloomfield Hills

Frequently Asked Questions

1. Is a Buyer Agency Agreement required in Michigan?
   While not required at the very first meeting, written agency disclosure is required before an offer is written. Most professional agents use a Buyer Agency Agreement early to ensure clarity.
   
   
2. Can I cancel a Buyer Agency Agreement?
   Yes. Many agreements include cancellation terms or can be mutually terminated.
   
   
3. Does signing mean I have to buy a home?
   No. It simply establishes representation while you search.
   
   
4. Does it limit which homes I can see?
   No. You can view any home on or off the MLS within the agreed-upon area.
   
   
5. Why are agents using these agreements more now?
   Industry changes have increased focus on transparency, consumer choice, and clear representation—especially around compensation.

In Closing

Buying a home is one of the largest financial decisions you’ll make. A Buyer Agency Agreement ensures you have professional representation, clear expectations, and an advocate working solely in your best interest.

If you’re considering buying in Oakland County, including Birmingham, Bloomfield Hills, Royal Oak, or Rochester, let’s talk through what buyer agency means for your situation.

📞 Contact Kathy Remski at 248-408-0049
She’ll walk you through the process—no pressure, just clear guidance.