Buying a house without a realtor can save you thousands if not tens of thousands of dollars when done correctly. But it also means you will have to make sure you follow all the necessary steps to ensure a smooth transaction. I will share insights and tips that can help you simplify this complex journey and buy with confidence, and hopefully avoid costly major mistakes.
My Journey to Homeownership
I remember the day I decided to buy my first house. It was thrilling but also a bit overwhelming. Like many first-time buyers, I initially thought I needed a realtor to guide me through the process. But after going through the home purchase process, I later discovered that having a realtor wasn’t completely necessary, at least for my type of transaction.
What’s more, I later became a realtor myself. After working with clients through the home buying process, I realized that buying a house without a realtor was definitely possible and could also save them a significant amount of money.
With the National Association of Realtor settlement, I believe more buyers will have to pay out-of-pocket to their buyers agent, which many will not want to do. That’s why I created diyhomebuyer.com to help people like you to navigate the home buying process without a realtor.
Why Consider Buying Without a Realtor?
The primary reason for going solo is cost savings. Realtors typically earn a commission of around 2.5-3% of the home’s purchase price, which is often baked into the seller’s price. On a $450,000 home, that’s up to $13,500. By opting to handle the purchase without a realtor, you could potentially negotiate a lower price with the seller or use those savings for home improvements.
By the time you read this, the NAR settlements might already be in effect, which means you now might have to pay your real estate agent out-of-pocket at closing. This might not be what you want to, or you simply couldn’t afford it. I suggest utilizing this checklist and the resources here at diyhomebuyer.com to be as educated as possible about the home buying process.
The Steps to Success To Buying Without A Realtor
Here’s a step-by-step guide based on my experience and what I’ve learned from others who have successfully bought homes without a realtor:
Do Your Homework: Start by educating yourself about the home-buying process. There are numerous resources available online, including guides, articles, and forums where you can ask questions and share experiences. Sites like diyhomebuyer.com offer a wealth of information to help you get started.
Get Pre-Approved for a Mortgage: Before you start house hunting, it’s crucial to get pre-approved for a mortgage. This not only helps you understand how much house you can afford but also makes you a more attractive buyer to sellers. It’s best to reach out to several lenders, compared rates, and ultimately chose one that offered the best terms.
Research the Market: Understanding the market is key. Spend time researching neighborhoods, property values, and market trends. Websites like Zillow and Redfin are excellent tools for finding listings and getting a sense of what homes are selling for in your desired area.
Find the Right Property: Once you have a good understanding of the market, start looking for homes that meet your criteria. This can be done through online listings or by driving around neighborhoods you’re interested in. Keep a list of properties that catch your eye and make notes on what you like about each one.
Schedule Viewings: First try to see the home during an open house if they host one. If they don’t have one coming up, then contact the sellers or their listing agents to schedule viewings. Here’s a more detail guide on how to tour a home without a realtor.
Make an Offer: When you find the perfect home, it’s time to make an offer. This step can be tricky without a realtor, but it’s entirely doable. Research comparable sales in the area to determine a fair offer price. Consider including contingencies for things like home inspections and financing to protect yourself. Check out our free guide on how to write an offer without a realtor. Note: this is to help you get started, you absolutely should consult a real estate attorney or a realtor about the contracts.
Negotiate Like a Pro: Negotiation is a critical part of the home-buying process. Be prepared to go back and forth with the seller on price and terms. Stay firm but fair, and don’t be afraid to walk away if the deal doesn’t feel right. Remember, there are always other homes out there. Checkout our quick guide on how to negotiate on your home that walks you through the thought process of all parties involved.
Hire a Real Estate Attorney: While you might not need a realtor, hiring a real estate attorney is a wise move. They can review contracts, ensure all legal aspects are covered, and provide peace of mind. If you want to be connected to a trusted real estate attorney in your state, we can help you with that.
Coordinate Inspections and Appraisals: Once your offer is accepted, schedule a home inspection to identify any potential issues. Depending on the results, you might need to renegotiate the price or request repairs. An appraisal will also be necessary if you’re financing the purchase. This is most of the coordination effort needs to be focused on. Since things are moving on a pretty strict timeline, be sure to stay on top of this.
Close the Deal: Closing on a house involves a lot of paperwork. Your attorney and closing agent will guide you through this process. Ensure you review all documents carefully and understand each item before signing.
The Rewards of Going Solo
Buying a house without a realtor can be a deeply rewarding experience. It requires more effort and diligence, but the financial savings and sense of accomplishment are well worth it.
In the future, this might be a necessity.
By taking control of the process, you’ll not only save money but also gain a deeper understanding of the real estate market and the home-buying process.
Final Thoughts
Going through this journey is not easy, and it’s not for everyone. I learned that while it’s entirely possible to buy a house without a realtor, it’s not for everyone. It takes time, effort, and a willingness to learn. But if you’re up for the challenge, the rewards can be significant. Remember, you don’t have to go it alone entirely. Resources like diyhomebuyer.com are there to guide you every step of the way, providing the knowledge and tools you need to succeed.
If you are looking for a community of people who are sharing their experiences on how to buy a home without a realtor, checkout our Reddit community.
