One of the most recent significant changes in real estate has been how buyer representation is handled. As of August 2024, buyers are now required to sign an agreement with their agent that clearly outlines compensation.
This has led some buyers to believe that skipping a buyer’s agent could save them money. It sounds simple, represent yourself, avoid paying commission, and negotiate a lower purchase price. But in practice, it’s rarely that simple.
If you choose to represent yourself, you are immediately at a disadvantage. The seller has a professional who understands the legal aspects of the transaction and has negotiation skills that the typical buyer simply doesn’t.
THE MISCONCEPTION ABOUT SAVING MONEY
There are two scenarios where a buyer thinks they will save money:
1) BY NOT HAVING TO PAY THE BUYER’S AGENT COMPENSATION
With the new rule, many buyers believe they will have to pay their buyer’s agent compensation at closing, adding another significant expense, so by being unrepresented, they think they can save that money.
While buyers are now required to sign an agreement stating they are responsible for their buyer’s agent compensation, most buyers are not actually paying this out of pocket. It is still typically paid for by the seller and negotiated as part of the purchase contract.
2) NEGOTIATE A LOWER PRICE
Buyers assume that if they don’t have an agent, the seller will reduce the purchase price by the amount they would have paid to a buyer’s agent. While that seems logical, it’s not usually how it works.
In today’s market, most sellers are still offering compensation to a buyer’s agent as part of the overall negotiation. Even if that cost is built into the listing price, it’s very unlikely a seller would lower the price by that full amount. You might be able to negotiate a reduction, but chances are a Realtor could negotiate the same, or even a better price on your behalf.
WHY USE AN AGENT
A skilled real estate agent brings far more to the table than simply writing an offer. They understand how to strategically negotiate, and in many cases, can secure a better price than an unrepresented buyer.
When representing a buyer, determining the right price starts with a detailed analysis of comparable sales in the neighborhood to establish true market value. From there, we can determine whether the home is priced competitively to sell or overpriced with the expectation of negotiating down. Understanding that intent is key.
But pricing strategy goes beyond comparables. We also evaluate how long the home has been on the market, whether there have been price reductions, and what type of market we’re in — whether it’s favoring buyers, sellers, or a balanced market.
In addition, experienced agents communicate directly with the listing agent to uncover valuable insights, what matters most to the seller, their timeline, and any other factors that can strengthen the buyer’s position. This information can make a meaningful difference in both price and terms.
NEGOTIATION IS MORE THAN JUST PRICE
More importantly, without representation, buyers may not know how or when to negotiate to their advantage. A real estate transaction is made up of far more than the final purchase price. Terms matter just as much, if not more. An experienced agent is especially valuable during the inspection period, helping buyers negotiate repairs, credits, and concessions. This is one of the most common areas where deals can fall apart. We coordinate inspections, advise on what to look for, and most importantly, know how to negotiate once the report comes in.
We can also navigate appraisal challenges and financing contingencies, helping buyers understand their options if a home appraises low or if something comes up with their loan. Whether it’s renegotiating the price, requesting concessions, or finding a solution to keep the deal moving forward, this is where experience really matters.
One of the most important aspects of a real estate transaction is managing timelines, deadlines, and contractual obligations. Missing a deadline can put you in breach of contract or obligate you to accept terms you hadn’t planned on.
Without professional guidance, buyers may unknowingly leave money on the table — or take on risks that could have been avoided.
At the end of the day, negotiating real estate isn’t just about offering less, it’s about knowing how to position that offer to get the best possible price and terms in a way that gets results. That’s where having an experienced Realtor on your side truly makes a difference.
If you have any questions about buyer representation or what this means for you, don’t hesitate to reach out. I’m happy to walk you through it.