Listing Agent EXPOSES 15 Issues with DIY Homebuyers — And I Respond! | Ep. 16
Introduction
Recently, I came across a fascinating post on Reddit about a listing agent's experience working with unrepresented buyers. Reddit's real estate community, with over a million members, offers a unique intersection of perspectives from home buyers, sellers, investors, attorneys, appraisers, inspectors, agents, and lenders. While you do get some extreme viewpoints (it is the internet, after all), occasionally there's a post that offers valuable insights, particularly regarding DIY home buying.
Welcome to the DIY Home Buyer Podcast! I'm your host Nick, and I created this show and its resources to empower home buyers to represent themselves, negotiate the best possible terms and prices, and navigate the buying process smoothly—all without paying for a costly buyer's agent who often complicates rather than facilitates the sale.
The Reddit Post: Context and Background
The post we're examining today is titled "Listing Agent and Unrepresented Buyers: How It's Going." Let's break down the key points and address the issues this listing agent highlights, attempting to be fair to both the agent's perspective and self-representing buyers.
The agent provides some context:
They're primarily a listing agent (80% of their business is listings)
Their average market price is $200,000
They charge 3% to list a home, increased to 4% for unrepresented buyers
They've had four sales with unrepresented buyers
They don't offer dual agency, but their broker does (rare occurrence)
The Process with Unrepresented Buyers
The agent describes their typical process:
Buyer sees the house through private showing or open house
They exchange information
The buyer can either have an attorney draft an offer or send terms directly
The agent presents details to the seller
They craft a counter-offer on a sales contract
The buyer typically accepts without negotiation
15 Issues with Unrepresented Buyers
The agent outlined several challenges they've encountered:
Earnest Money Delays: Buyers not sending earnest money on time
Incomplete Inspections: Only getting home inspections done, missing septic, sewer, lateral, termite, gas, and radon testing
Financing Changes: Attempting to change loan types without proper procedure
Communication Challenges: One buyer without email requiring in-person document pickup
Occupancy Inspection Issues: Buyers missing non-passing occupancy status
Missed Walkthroughs: Not showing up for final property inspection
Utility Transfer Problems: Failing to transfer utilities properly
Excessive Questions: Requesting advice beyond the agent's scope
Property Sale Contingencies: Late disclosure of needing to sell existing home
Title Paperwork Delays: Not completing documentation on time
Lender Document Delays: Similar issues with required lending paperwork
Poor Lender Choice: Selection of unreliable lenders
Negative Comments: Making disparaging remarks about agent compensation
Additional Agent Time: Requiring more in-person meetings and supervision
Deadline Management: Not taking deadlines seriously
Analysis and Perspective
While some of these concerns are valid, it's worth noting:
The sample size is only four transactions
The price point ($200,000) affects the commission structure significantly
Many issues aren't unique to unrepresented buyers
Some complaints reflect more on agent preferences than actual problems
The Commission Question
The percentage-based commission model raises interesting questions. The work involved in selling a $200,000 home isn't significantly different from selling a $1.2 million property, yet the compensation varies dramatically. The agent's additional 1% fee for unrepresented buyers seems more about maintaining income than reflecting actual additional work.
Customer Service vs. Representation
The agent's stance on "not being allowed to give buyer guidance" needs examination. While they can't provide negotiation advice, they can certainly offer basic customer service to ensure a smooth transaction. This typically serves the seller's interests by helping bring the sale to closure.
Recommendations for DIY Home Buyers
Get Educated: Understand the process thoroughly before starting
Maintain Professionalism: Avoid disparaging comments about agents
Meet Deadlines: Take all contractual deadlines seriously
Communicate Proactively: Address potential delays or issues early
Choose Reliable Partners: Work with reputable lenders and service providers
Stay Organized: Keep track of all documentation and requirements
Conclusion
While this agent's experience highlights some legitimate concerns, many issues stem from lack of education rather than inherent problems with self-representation. This reinforces the importance of proper preparation and education for DIY home buyers. With the right knowledge and approach, representing yourself in a real estate transaction is entirely feasible and can lead to significant savings.
