Does the buyer get a better deal by going to the listing agent directly?

In the waning days of 2007 and these first few weeks of 2008, there appears to be a growing number of buyers in today's market who seem to be making contact directly with listing agents of properties, and disclosing that they do not have buyer representation.  I have spoken to some of my colleagues and friends and am hearing the same thing from many of them. 
Interesting. 

Why is that? 

With all the information available today, why would a buyer knowingly not want someone to represent their best interests?  Perhaps, they are not making this decision "knowingly".  Are we as a real estate community not doing a good enough job of educating buyers to their rights?  I don't think that is the reason for this particular path buyers seem to be taking. 

Buyers are being inundated daily with many conflicting messages from the media. 
My theory is that the buyers are under the impression that they will get the best deal by dealing directly with the listing agent of the property.  After all, there is no lack of information for the buyer to come to their own conclusions about the price they should be paying.  And the attitude seems to be that if this one doesn't work out, they will go on to the next.  My own conversations with a few website visitors have said exactly that.  The information they are being bombarded with in the media creates this illusion.  

Buyers seem to believe that they have to make a choice between with getting the best price and being represented by a buyer's agent in the transaction. 

So, buyers ... In the purchase of your biggest investment, pre-planning and taking the time for this next step will produce a big pay off for you in the long run. 
Interviewing a few agents (2 or 3 is a good number) about their experience and expertise in the area you are looking, their buyer agency credentials, and what services they bring to the table for you is a good use of time in the long run.  The best way to come up with a list of buyer's agents to begin interviewing is ask your friends, co-workers and family members who they used, what their experience was and would they use that buyer's agent again.  "Why" or "why not" should be the next question to follow. 

Then, do some homework prior to your interviews so you will be prepared with a list of questions.  Ask the same questions of all the buyer's agents you interview. 
Ultimately, you will most likely have a "gut" reaction to someone who you feel strongly about, either positive or negative. 
After taking this step, if you still believe you have to make the choice between getting a good deal and being represented, (and just to re-iterate ... you don't!) ask some very specific questions of the listing agent.  What is their role?  What does it mean for you?  What can you expect?  What are your rights? 

You have to be even more informed and diligent if this is the route you believe you decide to take. 

RE: Does the buyer get a better deal by going to the listing agent directly?

Excellent Article. Some Buyer's believe that by cutting out the buyer's agent and working directly with listing agent, the listing agent will give them favors that will land them the best deal because he or she will be making twice the commission. In theory, eliminating the "middle person" should lower the cost of the transaction, that's econ. 101. In that case, why not cut out the all the real estate agents and go directly to the source...Seller or Bank (Foreclosure).

The problem with this argument is that most buyer do not know what they are doing or how to negotiate a sales price/deal. And having a good advocate who represents the buyer's interest only could save the buyer mucho $$$ later. That type of buyer-agent service as they say is priceless, my friends.

For the buyer-investor type who has experience negotiating, time is money and a good buyer-agent can do a lot of your leg work for you.

RE: Does the buyer get a better deal by going to the listing agent directly?

Interesting post.

Most buyers, even those who have done a great deal of research and are quite educated, don't seem to understand the role of the buyer agent, especially an exclusive buyer agent versus the listing (seller's) agent.

It usually takes about 30 seconds to explain one important fact that buyers understand pretty quickly. "The listing agent has a duty under the law in Massachusetts to get the sellers the highest price. Nothing you say to that listing agent is confidential."

That's a simple fact, and it is usually a wake up call to buyers.