Buying A House Without A REALTOR®

Table Of Content

• Connect with a Better Real Estate agent to discuss your options
• Times To Consider Buying a Home Without a Realtor
• What Are REALTOR® Fees And Who Pays Them?
• Should you buy a house without a real estate agent?
• Buying a house without a real estate agent
• What are the pros and cons of buying a house without a REALTOR®?

All will make quick cash offers, sometimes same-day, and close on a fast timeline too. Fractional investing is just a small sliver of the housing market—but it’s growing, and new companies continue to enter the market. A Realtor® is a real estate agent or broker who is a member of the National Association of Realtors® (NAR). To become a member, agents or brokers must join a local real estate association, agree to conduct themselves and their business according to the NAR’s Code of Ethics, and pay annual dues to their association. Next up, you’ll need to book an appraiser to verify that the home is worth your negotiated purchase price. It’s a step that your mortgage company will require, but you’ll pay out of pocket for it.

Connect with a Better Real Estate agent to discuss your options

If you feel like an agent would push you toward a deal too quickly, or set you up with the wrong home, you might feel more comfortable taking it on yourself. Closing on the home involves plenty of paperwork, and this is where your attorney really earns that fee. Once you’re done, the ink dries, and the seller receives the purchase funds, the home is yours. Even if you’re ready to buy a house without a real estate agent, doing so may be risky.

Times To Consider Buying a Home Without a Realtor

If the partnership isn’t working out and you still don’t want to navigate home buying alone, you can let the clock run out and then work with another agent. A real estate attorney can review your contract and provide legal advice. Some states require a real estate attorney to finalize a home sale and transfer the title. But even if it’s not required, an experienced lawyer can protect your interests. And the sooner you collect them, the easier the application process will be. Once you’ve gathered all your paperwork, start your mortgage preapproval.

What Are REALTOR® Fees And Who Pays Them?

But there’s also escrow, the title company, third-party experts such as home inspectors, and insurance agents, plus a number of people behind the scenes at your lender working to put the mortgage together. That’s not including an attorney which may be necessary in some states. A real estate agent can recommend trusted professionals for each of these roles and will liaise with everyone involved to keep the house hunt and sale going smoothly.

Should you buy a house without a real estate agent?

We do not include the universe of companies or financial offers that may be available to you. A small percentage of real estate agents are like that, but the larger percentage care deeply about providing quality service and treating clients honestly and ethically. After all, their business depends on their reputation, and often on referrals from satisfied buyers. Although many for-sale-by-owner (FSBO) sellers will pay a commission to a buyer's agent, some will not. Some FSBOs want to sell without any real estate agent involved in the transaction. In the industry, these types of sellers are considered "unrepresented."

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You don’t want to buy a property to run your business if the local governing body will never grant approval for that location. Having these details provides the buyer with room to negotiate on repairs, price, or even walk away from the sale entirely. You’ll want to land on a price that’s competitive without overpaying — but there’s more to it than that.

Rocket Mortgage

Much of the home is covered under a standard inspection, but if you want to check for radon or pests, you’ll have to order separate inspections. Do your research and find an inspector with a good reputation for being thorough. The National Association of Realtors found that in 2021, buyers viewed a median of 8 homes and viewed 3 homes only online. Scheduling home tours can be difficult as you’re working around the seller’s and agent’s schedules as well as your own.

This will include the details about the title agency you will use, any contingencies, who will cover various fees, and the purchase price. Before making an offer it's a good idea to hire a real estate lawyer. You might need to negotiate with the seller if you notice anything that's amiss with the home.

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What are the pros and cons of buying a house without a REALTOR®?

If you don't have a realtor, you'll be on your own to determine the types of inspections you should perform. Realtors often have relationships with lenders, and without one, you'll find your own mortgage. You won't know whether your lender has a reputation for closing on time or whether you're getting the best rate and terms. Negotiating an offer is very different from, say, buying a car, because the risks in buying a home far exceed price considerations. Use our mortgage payment calculator to see how much home you can afford considering your down payment and potential interest rate.

You’ll want to be careful, though, that you’re not overmatched when you’re dealing with the seller’s agent, who is only representing the seller’s interests. Think of it like negotiating a divorce settlement with just the counsel and expertise of the other party’s lawyer—it might not go well for you. If you’re thinking about selling your home to one of these businesses, you’ll start by contacting the company and providing some basic info about the home.

If there are no open houses scheduled, contact the seller’s listing agent to request a tour. Once you’ve settled on a neighborhood, it’s time to start looking for homes on the market. Look for homes in your budget and keep a running list of properties that might be right for you. Unless you’re ready to handle the many demands of a real estate buyer’s agent, you might have trouble purchasing a home without one. Here are four reasons to reconsider whether going it alone is worth it.

You can ask them about any structural problems; condition of the HVAC, plumbing, and electrical systems; mold and mildew; termite damage; the presence of lead paint, radon, and asbestos, and so forth. Unlike many other professionals, most agents don’t bill by the hour or job; instead, they only get paid if you actually buy or sell the property. By working with a Better Real Estate Agent and funding with Better Mortgage, not only could you make a no-fee cash offer, you could also close up to 10 days faster than the industry average3. Many buyers don't know how to spot potential problems such as dry rot or wet basements or don't know how to determine whether a sewer inspection is necessary.

Miranda is dedicated to advancing financial literacy and empowering individuals to achieve their financial and homeownership goals. She graduated from Wayne State University where she studied PR Writing, Film Production, and Film Editing. Her creative talents shine through her contributions to the popular video series "Home Lore" and "The Red Desk," which were nominated for the prestigious Shorty Awards.

At Mogul, which widely launched its platform last fall after a private beta, people can invest as little as $250 in homes scattered across the US Sunbelt. Typically, these become short-term rentals, including a stylish five-bedroom house in Southern California that rents for $800 a night on Airbnb. Mogul has just four properties available currently, but its CEO, Alex Blackwood, says the company plans to have as many as 20 to 30 within the next month or so. But they aren’t all retail investors, and some instead pour tens of thousands of dollars into the properties.

You’ll most likely need to work with a title company, and maybe an escrow company. Know what to expect and learn about the closing process, how to prepare, and who will be there and you’ll have the keys to your home in no time. If you’re not using an agent, be sure to hire a real estate attorney early on to review the purchase agreement and closing documents. Buying a home is a large commitment, and the documents can be complicated. An experienced lawyer will be able to advise you and incorporate language into the contract to protect your interests. Before buying a home without a realtor, you should consider ways to protect yourself from risks that can be costly.

Your final steps include hiring a home inspector and lawyer and negotiating and closing on your new home. If you buy a home without an agent, you’ll have to negotiate and decide how much to offer on your own. This may cause you to unknowingly overpay for your home – or lose out on one you want. When you work with a buyer’s agent, they will negotiate on your behalf with the seller and seller’s agent. Buying a home is an investment, so before you get too far down the road, it’s important to find and hire a good real estate attorney to work with.