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Real Estate
08 December 2024

Homeowners Embrace New Buying Strategies Without Agents

Recent legal changes are prompting Americans to explore alternative home buying and selling methods

Buying or selling a home is often seen as one of life’s biggest milestones, yet it can also be one of the most stressful and confusing processes. Traditionally, many homeowners turn to real estate agents for help, believing they can navigate the complex world of property transactions more effectively than the average person. But recent changes and the experiences of those who’ve opted out of this conventional route are raising questions about the necessity of hiring traditional agents.

This shift stems from broader changes resulting from recent legal battles involving the National Association of Realtors (NAR). Earlier this year, a jury found NAR guilty of colluding with major real estate brokerages to maintain inflated commission structures. A settlement from this case instituted new rules aimed at preventing agents from taking excessive fees from home sellers, prompting many Americans to rethink how they buy and sell properties.

Despite the overwhelming majority of home transactions still involving agents—around 86% of buyers worked with brokers in 2024 according to the NAR—there's been chatter about more people skipping agents altogether. Some homeowners are either cutting out the middleman or negotiating lower commissions as they strive for convenience and speed.

Four individuals shared their stories with Business Insider, demonstrating how they successfully navigated buying and selling homes without traditional brokers. Their experiences offer insight not only on alternative strategies but also the shifting attitudes surrounding real estate transactions.

One tale is of Chelsea Hutchison, who sold her home to Opendoor, a company known for buying homes quickly for cash. While traditional agents typically charge commissions ranging from 5% to 6%, Hutchison paid Opendoor only 5% for the speed and simplicity of the process. The home, which included four bedrooms and spanned 2,000 square feet, sold for $535,000—less than what Hutchison could have fetched on the open market but offered significant time savings as she was relocating due to personal circumstances.

Having consulted with a traditional agent who estimated she could sell her home for about $565,000, she opted for the cash offer from Opendoor to prioritize convenience. With time constraints weighing heavily on her, Hutchison was willing to sacrifice some potential profit for the speed of the transaction. "If I had time and I was really wanting to maximize my profit, then I probably would utilize an agent," she later reflected.

Another seller, Melissa Gonzales-Szott, echoed Hutchison's sentiments. She described her experience with Opendoor as straightforward, stating she was prepared for some financial loss but appreciated the peace of mind the process offered her. After selling her 2,200-square-foot home in Las Vegas for $448,500, Gonzales-Szott found the transaction to be completed significantly faster than the previous sales she had been involved with, underscoring how the convenience outweighed her concerns about money.

Yet, these quick sales to companies like Opendoor come with conditions. Critics argue these transactions can undervalue homes, especially as the sellers often maintain little negotiating power. Real estate experts caution homeowners to carefully evaluate offers and market conditions before jumping at quick sale deals.

Meanwhile, some home sellers are opting for alternative routes, like leveraging technology. One man featured decided to have several agents bid for his listing, eventually selecting the one who agreed to take a lower commission. This not only underscored his agency but also allowed him to maximize his profit from both the sale and the commission negotiations.

The experience of those foregoing traditional real estate agents is part of a broader conversation on how authority and processes are changing due to technology and market pressures. The desire for greater control, efficiency, and cost savings may encourage more homeowners to explore options beyond the typical agency method.

Many industry insiders suggest this trend could redefine home buying and selling. With the ease of online platforms, sellers can manage marketing, showings, and even paperwork themselves, dramatically reducing the need for intermediaries. Various online services also provide resources for conducting market analysis, which can empower sellers with the knowledge needed to make informed pricing decisions without needing agents.

Despite the knowledge and resources available at their fingertips, the transition to self-guided transactions isn’t without hurdles, such as potential legal headaches and the emotional toll of selling one’s home. While some sellers find satisfaction and savings, others could find themselves unsure when legal nuances come calling.

The changes affected by the NAR settlement are still being digested by the real estate community, and it remains to be seen how these shifts will influence buyer behaviors long-term. For now, sellers like Hutchison and Gonzales-Szott provide glimpses of what’s possible, largely fueled by the desire for speed and reliability. It seems, for many, the road to homeownership may be taking unexpected turns.

These compelling stories of homeowners forgoing the traditional real estate route are much more than mere anecdotes; they highlight significant trends as the industry grapples with shifting expectations and regulations. The outlook for future home sales may no longer hinge exclusively on the traditional brokerage model but may include innovative strategies aimed at enhancing user experience and profitability.

The real estate market remains dynamic, continuously shaped by legal rulings, technological advancements, and changing buyer expectations. With homeowners increasingly recognizing their options and full agency over the sale or purchase of their property, the age-old reliance on real estate brokers is undoubtedly undergoing scrutiny.

The bottom line is this: whether driven by new rulings or personal circumstances, the debate over the role of real estate agents is becoming more relevant, reflecting changing attitudes to one of life's big transactions. Homeowners are poised at the intersection of tradition and innovation, ready to redefine what buying and selling homes entails.