Usually not. The listing agreement often says the listing brokerage's commission stays the same when no other agent is involved, so there may be no savings to pass on. The listing agent also works for the seller, so they can't advise you or negotiate for you. Your own buyer's agent often costs you nothing out of pocket, but read your agreement to confirm how they're paid.
Pro tip: buying a property straight through the listing agent in BC saves you money.
Here's why that's usually not true, and why it can end up costing you far more than a quick trip to Costco.
The theory, and why it rarely works
The usual thinking goes like this: no second agent means less commission, so the seller drops the price for you. Cute idea, but it rarely happens.
- The commission may not change. Many listing agreements say the full commission stays with the listing brokerage if no other agent is involved. If that's the case, there's no saving to hand you.
- The agent often does more work. A buyer without an agent usually means more questions and more back and forth, all landing on one person.
- The seller still wants top dollar. Even when a commission is reduced, nothing requires the seller to pass that on to you.
Who the listing agent works for
The listing agent's job is to get the seller the best price and terms. That's what the seller hired them to do. In BC, one agent generally can't represent both the buyer and the seller, because dual agency is prohibited except in rare circumstances. So if you deal directly with the listing agent and don't hire your own, you're an unrepresented party, and you should get a disclosure explaining what that means.
In practice, you're on your own:
- Your motivations aren't protected. Tell the seller's agent why you're buying, how fast you need to move or how high you could go, and they don't have to keep it from their client.
- The contract is up to you. The listing agent can't advise you on which conditions to include, what to offer or how to protect yourself.
- Nobody's negotiating for you. It's a bit like playing poker with your cards face up.
What to do instead
Hire your own independent buyer's agent before you tour any homes. Their duty is to protect your best interests, from pricing and conditions through to completion day.
It often costs you nothing out of pocket, because a buyer's agent is commonly paid out of the commission the seller has agreed to. That isn't automatic, though. A buyer's agency agreement is a legally binding contract with the brokerage, so before you sign, make sure you understand how your agent gets paid, how long the agreement lasts and whether you could owe anything yourself. Any good agent will walk you through it.
Want to see how I'd work with you? Read how to tell if your realtor is any good, or get in touch and we'll plan your purchase.
General information only, not legal advice. Rules are from the BC Financial Services Authority's guidance on agency and disclosure and buyer's agency agreements. Check your own listing or agency agreement, since terms vary.