Homebuyers can represent themselves by learning how to buy a house without a REALTOR® Saving Possibly Thousands of Dollars on Buyer Agent Commissions. 

Three Things You Should Know When Buying a Home Without a Realtor  

In today’s real estate market, buying a home without the help of a REALTOR® is becoming more common. With easy access to home search sites and online real estate instruction, such as Todd’s Simple Home Buying Course, buyers can undertake purchasing a home independent of an agent.  

Even homebuyers who decide to hire agents are less dependent on their agent’s services than in the past. Gone are the days when buyers blindly depended on agents to do the legwork. Now you can know what an agent knows, and it could save you possibly thousands in commission fees.  

If you are considering self-representation, here are three important areas in which you’ll want to focus: learning how to work with the listing agent, knowing how to research a home’s comparable sales, and forming a team of professionals who will help complete the home buying process.  

Learn how to work with the listing agent 

Representing yourself when buying a home means you will need to deal directly with the listing agent of the home you want to buy. Knowing what you’ll need from them is essential as you go through the home buying process. 

Contact the listing agent 

Can you see a property without the help of a buyer agent? Yes. Typically, a buyer’s agent will make an appointment for a buyer to see a property. Without an agent, you can search the online listing for the listing agent’s name and contact them directly.  Clicking on the box “schedule a tour” however will send your name to a random agent who has paid the site for a lead. It may even result in your name being sold to mortgage lenders who have also paid for leads on that site. Make sure you are contacting the seller’s agent directly to avoid sales calls. 

Know about buyer agent compensation 

You’ll want to ask the listing agent what, if any, are they offering in buyer’s agent compensation. Buyer’s agents typically get their commission when the seller agrees to share the listing agent’s commission with a buyer’s agent. Without a buyer’s agent, you may be able to use any buyer’s agent compensation supplied by the seller in your negotiations.  For instance, if the seller is offering 3% toward buyer agent compensation on a $500,000 home, you may be able to apply that $15,000 to the purchase price of the house.  

Ask the listing agent to write your offer 

When it comes time to make an offer on a home, you will need someone to supply you with the contract forms as well as present the contract to the seller. There are several options to choose from including a real estate attorney, a title attorney, or the listing agent. Having the listing agent present your offer does not mean that the listing agent will represent you. They will not be able to advise you or help you decide on a price. They will simply supply you with the contract and any other documents needed in your deal for you to fill out. They will then present your offer to their seller.  

Learn how to research a home’s comparable sales 

When researching homes online, you’ll be confronted with a lot of data about each home. Knowing how to properly analyze this data will help you decide what the home is worth when offering your bid to the seller.   

Property History 

If you live in a disclosure state, you’ll want to closely examine the property history of the home. This information will reveal how many owners the home has had, all price increases and decreases, and if the home has recently been under contract. This information can help you better appraise whether the home is overpriced or not. For example, if a home sold a year ago and is now back on the market for more money, you’ll want to know why the price increase. Perhaps it was recently remodeled. If not, the home may be overpriced. 

Days on the Market 

The days the home has been on the market can be a significant indicator of where the seller is mentally. If the home has just hit the market, the seller is the most hopeful to get the list price. If the home has been on the market for more than 30 days, the seller may be willing to take a much lower offer. Understanding days on the market will help you know if offering a lower price will be effective. 

Learn how to form a team for the home buying process 

The home buying process requires a teamwork of professionals. Even when representing yourself in the buying process, you may need to hire a mortgage company, a title company, and home inspection professionals to help you complete your home purchase. 

Mortgage Lender 

If you need a loan, you may choose to use a mortgage company. A mortgage lender will get you preapproved for a loan which can help you narrow your home search to those homes within your budget. A lender will be able to tell you what total monthly payment you can afford as well as how much your closing costs will be. A good mortgage company will explain the types of loans available to you and may even be open to negotiating their fees to match competitors.  

Title company and escrow agent 

A title company is responsible for transferring the title of the property from the seller to the buyer as well as researching property records to make sure that the title is valid and clear of liens. The title company can also be the escrow agent. An escrow agent holds your earnest money deposit, which is a good faith deposit on the home you are offering to buy. Check to see if your state requires either the buyer or the seller to choose the title company. If your state requires the buyer to choose, you will pay the bulk of the title company fees.  

Home Inspector 

Finding a home inspector who looks out for your best interests is imperative. Inspectors who work for the listing agent may be more favorable to the seller. A home inspector should pick the house apart, uncovering any and all issues the house may have. This information will allow you to negotiate with the seller for any repairs the house needs. Any area that a home inspector cannot inspect should be inspected by a specialty inspector. You may need an additional inspection of the septic and well, chimney, roof, heating and air system, or electric. A good home inspector will advise you if you need additional inspections. 

 Whether you want to save thousands on commission fees or you want more control over your homebuying process, learning to represent yourself without an agent is not only possible but is easier than ever.  A home purchase is the largest purchase you will ever make. Educating yourself is essential to protecting your money and your future investment.  

If you want to learn about buying a home without a realtor, Todd’s Simple Home Buying Course can teach you more! Check out this indispensable home buyer’s course today and be a savvy home shopper tomorrow! 

Disclosure: State laws pertaining to real estate sales may vary from state to state; be familiar with your state laws. This blog post is for informational purposes only; buyers must verify accuracy of the information provided herein for your specific state and does not constitute broker representation.