The Hidden Costs of Buying a Duplex Without a Buyer’s Agent in Minneapolis

As a listing agent, I frequently get calls about duplexes I have listed for sale throughout the Twin Cities.

Most people just want to know more about the property. Lately, the callers also want to see the property and represent themselves if they buy it. When I ask why, their answer is always the same. “To save the commission.”

I get it. Buyers are responsible for paying an agent’s commission. Why wouldn’t somebody want to save it? And while commissions are negotiable, any percentage of a $450,000 duplex sale is still a lot of money.

Granted, I’m a Realtor. I might be biased. But after more than two decades of experience, I know trying to save a commission can end up costing you a lot. Here’s how:

1. You’re Already A Day Late – By the time a listing shows up on the platform you use to search for real estate, buyers working with agents have likely received an email alert that it’s on the property and their agent has set up a showing. Your access is contingent upon reaching the seller’s agent and finding time in their schedule to let you in.
2. The discount isn’t up to the listing agent. It’s up to the seller. No two people or parties can save the same commission. If you’re not working with a licensed professional, the sellers may decide to keep that money for themselves. Working without an agent is no guaranty of a savings.
3. The listing agent represents the seller. As the seller’s representative, the Realtor has a duty to act in their best interests. Want them to write an offer up for you? The must do so in terms most favorable to their client, which isn’t you.
4. The listing agent can’t act as a facilitator. A facilitator is a neutral third party who simply helps complete the paperwork without offering advice. As the agent was hired to represent the seller, they can’t impartially complere the paperwork.
5. If you have questions about the contract, ask an attorney. The listing agent is not required to explain terms in the contract to you. For clarification, the buyer must hire an attorney or find some other counsel.
6. Listing agent is under no obligation to help you find a resolution to any problem. Seasoned Realtors have a network of specialists to help diagnose and repair every component of a property, insurance agents who offer specialized types of coverage and lenders who offer varities of loan products tailored to multifamily property buyers needs.
7. Negotiate against people who do this for a living. Unless you’re an experienced real estate attorney or seasoned investor, odds are the listing agent has far more experience negotiating real estate deals than you do. As a result, they are more likely to win.
8. Working with you is far more difficult than working with a licensed professional.  Realtors are licensed by the state of Minnesota. As part of that process, they have hours of education and training you do not.  The listing agent’s job is not to teach you. That lack of knowledge makes the process slower, creates errors the listing agent will need to correct, and frustrates sellers who’d hoped for a smooth transactin.
9. You can finance the cost of your agent. Most of the time, the seller is willing to include some or all of the buyer’s agent’s commission in the final sales price. It’s a way for the buyer to save their cash for improvements they want to make to the property, or simply as a rainy day fund.
10. Do the numbers. If the listing agent provides a financial pro-forma for the property, the nubmers will favor the sellers. A buyer’s agent who specializes in multifamily properties will be able to give you something that may more closely resemble reality.
11. Tenants rights, evictions and rent control. Very few duplex buyers are clear on what cities have rent control, what the notice of eviction periods are for cities throughout the metro, which require rental licenses or inspections by the fire marshall. Many would-be duplex buyers assume when the property changes hands, leases for the current tenants are no longer valid. Having a seasoned professional guide you through those traps can save you thousands in legal fees.
12. Off-market properties. Have you ever seen a duplex show up on the Internet as sold, when you didn’t even know it was for sale? Odds are it was an off-market transaction. Either the buyer’s agent or one of their peers had a client thinking of selling, and that buyer got a shot at the duplex before it ever hit the market. Not having an agent means you never had a chance.

I understand. You’ve worked hard for your money. Don’t hand it over to a process you’re not fully equipped to navigate alone. Whether you’re just starting to explore duplexes or you’ve already got a property in mind, let’s talk. There’s no obligation — just an honest conversation about what’s possible.