How do buyer agent fees work now when buying or selling in Colorado Springs?

Why this has been so confusing

If you've heard that buyers now have to pay their own agent, you're not alone. A few things happened at once.

The headlines. When the National Association of REALTORS® settlement changed industry practices in 2024, much of the coverage suggested that commissions were going away or that buyers would always pay their agent from now on. Neither turned out to be true. Fees are still negotiated, and sellers can still offer to cover them.

Two sets of rules that didn't line up. Starting August 17, 2024, the settlement required agents who use the MLS to have a written agreement with a buyer before touring a home, with the agent's compensation clearly disclosed. Offers of compensation to buyer agents also came off the MLS, though they can still be negotiated in other ways. But at the time, Colorado law didn't require a written agreement to start working with a buyer. For about two years, the national rule and the state rule said different things.

Colorado caught up in August 2026. A new state law, HB26-1426, now requires a broker to establish the working relationship with a buyer or seller through a written agreement, with compensation clearly disclosed, before performing licensed services. The national and state rules now point in the same direction: expect to sign a written agreement with your agent early in the process.

VA rules changed on a separate track. VA borrowers were long prohibited from paying a buyer agent's fee. VA changed that in 2024 through its own guidance, separate from the national and state rules. More on that below.

The real concern: costs add up

The worry behind the confusion is legitimate. Buying a home already means coming up with a down payment, closing costs, possibly a VA funding fee, and whatever it costs to get the house to where you want to live in it. Adding an agent fee on top of that is a real cost, and many buyers simply don't have that money set aside.

That's why it matters to plan for how the fee will be handled before you make an offer, not after.

How the fee can be covered

Your options generally include:

• Asking the seller to pay your agent's fee as part of your offer.
• Asking for a seller concession, which can go toward your closing costs or your agent's fee.
• Paying some or all of the fee yourself at closing, if the seller doesn't cover it.

When we work with buyers, we ask to negotiate our fee as part of the offer to the seller. In Colorado Springs, that is typically how it's working right now, though how well that strategy works depends on the market and the specific home.

Speaking only from my own experience: so far, none of our buyer clients has had to pay our fee themselves, and every one of them has gotten the same level of representation. We treat everyone the same. That's not a guarantee for every purchase, because each deal is negotiated, and the details are best worked out in a conversation about your specific situation.

What a buyer's agent actually does for that fee

Many buyers assume an agent's job is mostly opening doors. Some agents may work that way, but that isn't what a true professional does.

A buyer's agent is a problem solver. The work includes representing your interests, interpreting the contracts and deadlines, negotiating on your behalf, and bringing the local knowledge you need to make fully informed decisions. Most of all, it's helping you achieve your goals, not just getting a transaction closed.

In my view, it should also be a lifelong relationship. When you need a contractor, an insurance agent, or another professional years later, you should be able to call us for a referral. And we meet with our clients once a year to review their real estate: how their home and neighborhood are performing, what their equity looks like, and whether they should adjust their insurance. That conversation helps people decide how to use their equity, whether to sell or invest, and how to avoid putting more into a home than the neighborhood will support. It isn't something we write into the contract. It's simply part of how we work.

Why working directly with the listing agent isn't the same

Some buyers wonder whether they can skip having their own agent and work directly with the seller's listing agent. You can, but it helps to understand the roles.

Colorado law recognizes two main working relationships. A single agent represents their client's interests over the interests of the other party. A transaction-broker helps one or more parties with communication, negotiation, contract terms, and closing, without being an agent or advocate for either side.

A listing agent begins as the seller's agent, with duties to the seller. Even if that broker changes to a transaction-broker role to work with you, they aren't your advocate. In my opinion, there's also a practical limit: a listing agent who started out representing the seller knows things from the seller's side that they can't simply unknow. If you'd like someone whose job is to advocate for you, that's what your own agent is for.

How it works for sellers

As a seller, your listing agreement sets what you'll pay your listing broker. Separately, you decide whether to offer compensation to a buyer's agent or to offer concessions to buyers. Those offers can't appear on the MLS, but they can be communicated in other ways, and buyers may ask for them in their offers.

When you compare offers, look at your net proceeds, not just the price. An offer that asks you to cover the buyer's agent fee may still be the stronger offer overall once you account for price, terms, financing, and timing. Your listing agent can help you compare them side by side.

What VA buyers should know

In 2024, VA issued Circular 26-24-14, which allows VA borrowers to pay reasonable and customary buyer-broker charges. The circular states it is valid until rescinded. Under that guidance:

• The agent fee can't be financed into the VA loan, so you'd pay it from your own funds at closing. (The VA funding fee is different; it can generally be financed.)
• Your lender will count the agent fee when confirming you have enough assets to close.
• The buyer representation agreement becomes part of the loan file.

Many VA buyers still ask the seller to cover the fee as part of their offer. Because VA guidance can change, confirm the current rules with a lender experienced in VA loans before you make an offer. See how to choose a lender for a VA loan.

Questions to ask before you sign an agreement

• What services will you provide, and what's included?
• How much is your compensation, and how is it calculated?
• How will we handle your fee in an offer, and what happens if the seller won't cover it?
• How long does this agreement last, and how can either of us end it?
• Is this a transaction-broker or single-agency relationship, and what does that mean for me?

What could change the answer

How often sellers cover buyer agent fees depends on market conditions, the price range, and the individual seller, and it can shift as the market changes. The rules may also change, and VA guidance in particular has been updated since 2024. Check the current rules when you buy or sell.

When to talk with a professional

Your agent can explain their agreement and how they handle fees in offers. A lender can tell you how any fee you pay affects your cash to close, and a VA-experienced lender can confirm current VA rules. For legal questions about an agreement, talk with a Colorado real estate attorney.