By Maura Stevens
March 2025
A real estate transaction normally involves the buyer, the buyer’s agent, the seller and the seller’s agent. An unrepresented buyer is a buyer who would like to submit an offer on property but is not being represented by a buyer’s agent.
The listing agent represents the interests of the Seller only. Is it prudent to engage with an unrepresented buyer in real estate transactions?
From the Buyer’s Perspective:
- Going unrepresented is an opportunity to present a potentially stronger offer since the seller is not being asked to pay any buyer agency compensation.
- A seasoned buyer who has purchased a home before and is familiar with the process may be comfortable submitting an offer without representation.
- An unrepresented buyer may not have a sense of the property’s fair market value so they may pay more for a property without the guidance of a buyer’s agent.
- The unrepresented buyer must coordinate directly with lenders, title companies, and inspectors, increasing the risk of missing deadlines or required documents.
- If issues arise during negotiations then the unrepresented buyer will be interacting with the listing agent. The listing agent represents the interests of the Seller only.
From the Seller’s Perspective
The seller may be hesitant to select an offer from an unrepresented buyer as that buyer has not been vetted by an agent which can cause concern about the following;
- Will the buyer default
- Has the buyer been pre-approved by a reputable lender
- Does the buyer understand the buying process
- A real estate transaction requires compliance with various state laws, including disclosure requirements and contract contingencies. Does the Buyer have a clear understanding of the contract terms and conditions?
- Without a professional guiding them, they may not meet deadlines for contingencies, inspections, or appraisal requirements, potentially causing the deal to fall apart.
- The listing Agreement with the listing agent likely has separate commission agreed to in the case of an represented buyer – thereby not really saving the Seller money.
