Why Unrepresented Buyers Don’t ‘Lose’ Commission - and What Sellers Should Understand

 

There’s a lot of half-truth in the claim that buyers “lose thousands” when they come in unrepresented. Here’s what actually happens in real-world transactions.

1. Buyer-Agent Compensation Is Not Automatic

A buyer’s agent commission is never guaranteed and is always negotiable.
It exists only if:

• The seller agrees to offer it, and

• A buyer’s agent is actually involved in the transaction

If a buyer shows up unrepresented, there is no obligation for the seller—or the seller’s agent—to redirect funds back to the buyer.

2. The Seller’s Agent Doesn’t “Pocket” Anything by Default

When a buyer is unrepresented, the seller’s agent:

• Still represents only the seller

• Takes on additional risk, compliance, and workload

• Must ensure the buyer is treated fairly without providing representation

Any compensation is disclosed in advance and governed by the listing agreement the seller signed—not decided on the fly.

There is no secret windfall.

3. Flat-Fee “Transaction Brokers” Are Not Advocates

A transaction broker:

• Does not negotiate for you

• Does not advise you on pricing, inspections, or concessions

• Does not protect you if the deal goes sideways

They process paperwork. That’s it.

Buyers often don’t realize they’re trading representation for the illusion of savings.

4. Sellers Decide How Proceeds Are Allocated

If a buyer wants a credit, reduced price, or commission concession:

• It’s a negotiation item

• It must be approved by the seller

• It’s not automatic or guaranteed

A strong listing agent evaluates these requests strategically to protect the seller’s net—not to favor one side.

5. Commissions Are Always Negotiable - But Value Still Matters

Yes, commissions are negotiable. Always have been.

What matters is:

• Experience

• Risk management

• Negotiation skill

• Deal certainty

In a transaction worth hundreds of thousands of dollars, cutting representation to save a few thousand often costs buyers far more in price, terms, inspections, or missed issues.

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The Bottom Line

There is no “commission trap.”

There is:

• A listing agreement

• A disclosed compensation structure

• A negotiation process

• And a clear difference between representation and transaction processing

Buyers should absolutely understand their options—but they should also understand what they’re giving up.

And sellers deserve agents who protect their interests, manage risk, and deliver results—not sound bites.

 “Before you make assumptions about commissions or representation, get the facts.
If you’re buying or selling and want a clear explanation of how commissions actually work - and how they affect your bottom line - let’s talk.”

THE ROSELLI TEAM Enrico & Monica Roselli

SEE OUR 100+POINT HOME MARKETING PLAN Click for OUR REVIEWS Phone: (954) 895-4991 Email: monicaroselliz@gmail.com

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