While the National Association of REALTORS® lawsuit and settlement focused on the buyer experience when they included the term: “Buyers must have representation”, that doesn’t mean that ALL buyers must conform to this.  

The truth is, buyers can represent themselves in the purchase of an MLS listing and release the liability from the broker who is representing the seller. However, just because they can doesn’t mean they should.  

As the listing agent, you will coach your seller on how they can prepare for the possibility of a buyer not being represented by an agent and how they would like to approach this scenario. If you are in a state that permits duel agency, you could act as an intermediary between the buyer and seller, or your seller could insist that any buyer that wants to make an offer must be represented by an agent of their own. 

Related reading: Why Signing the Buyer Agency Agreement Can Seem Scary to Buyers   

Why Sellers Should Have a Tougher Mindset 

Let’s think about this for a minute. When it comes to the real estate purchase contract, who gets locked in? It’s the seller. The truth is, buyers have a lot of opportunities to get out of the contract if they change their minds. They can get out after the inspection, they can get out after the appraisal, they can get out if their mortgage financing falls short, or with other mortgage contingencies. The buyer can sabotage their application to kill the deal in a lot of ways. 

The seller, on the other hand, can’t do anything. They have no back door, and no escape hatch if they change their minds. You can say to your sellers:  

“Mr. and Mrs. Hunna Hunna, when we go into contract, that’s locking you up, not the buyer. I’m going to say that again. When you sign a contract, you are now locked up and married to that buyer, and there’s no such thing as divorce. The buyer can drag this out for months, if they wanted. Now, would you feel comfortable selling a house to a buyer who has no direction and no handholding from an agent and they don’t know what they’re doing? Are they doing what they are supposed to be doing, and when they are supposed to be doing it? Who are they calling for an inspection? Did they do their application with a mortgage lender? Did they go through a broker, or head straight to the bank? There are so many places a buyer could go wrong without any help, so do you really want to be locked into a contract with someone that has no idea what they are doing?” 

Related reading: Contracts Counsel – Buyer Representation Agreement 

The Takeaway 

It’s more than just “Buyer Beware” in the real estate industry, its also “Seller Beware.” Coaching your sellers on why they should be insisting that any buyers that want to make an offer have an agent who can guide them ensures that the transaction runs smoothly on both sides. After all, both buyers and sellers want to have a positive experience, and having capable agents like you is how you can make that happen. 

Related reading: Why “Coaching, Not Closing” Is Key to Success 

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The NAR Intensive LIVE Workshop is the only live event we are hosting until 2025 and your chance to see Darryl LIVE and in person to learn some of the most important skills and strategies of our time in this new real estate reality. Don’t miss a transformative opportunity to not only understand what you need to know about the industry changes that can and will affect your business but to feel confident and competent having those conversations with buyers and sellers.

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