How Buyer-Agent Compensation Works in Utah

A buyer should first decide what representation and services are needed, then agree on fair compensation. Focusing only on the fee can be as shortsighted as ignoring it.

Services may include property search, market analysis, access coordination, offer strategy, contract drafting, negotiation, due-diligence coordination, deadline management, appraisal strategy, closing coordination, and post-closing assistance.

The REPC allows the buyer to request a seller contribution to the buyer's brokerage. The seller evaluates that request with the full offer. It is economically similar to other concessions because it affects the seller's net proceeds.

• Seller pays the full agreed amount through a negotiated contribution.
• Listing brokerage contributes, reducing the buyer's balance.
• Buyer pays the full amount directly.
• Buyer and seller each fund part.
• Buyer negotiates a higher price with a contribution, subject to appraisal and lender rules.
• Brokerage agrees to a different fee in writing.

• What amount or formula am I agreeing to?
• What happens if the seller contributes nothing?
• Is there a minimum fee?
• Does the agreement cover builders, FSBO properties, or off-market purchases?
• What services are included?
• Can the fee change without a written amendment?
• What happens if I cancel the agency agreement?

Sellers should evaluate the requested contribution based on net proceeds and offer strength, not ideology. A contribution may help a qualified buyer complete the transaction, but it is still a cost that should be compared with price, closing costs, repairs, and other concessions.

Transparent compensation is healthier than pretending the service has no cost. The buyer should know the maximum obligation, the seller should know the requested contribution, and both should evaluate the complete transaction economics.

• Which deadline controls this issue?
• What must be delivered in writing?
• What money is at risk if the transaction is canceled?
• Does an addendum change the standard form?
• Is this a real-estate question, or does it require legal, tax, lending, inspection, or engineering advice?