Should You Buy a House Without a Realtor? - SmartAsset

Can you buy a house without a realtor? That’s one of the decisions you’ll have to make when you begin the home-buying process, but you technically can. While going without a realtor could save you a little bit of money, a buyer’s agent can help you find the perfect property and negotiate with the seller for the best price. Millions of people have bought their homes without the help of an agent and thanks to the plethora of online real estate tools and information, more homebuyers are choosing to go the solo route. You may want to at least consult with a financial advisor before deciding to buy a home and get your finances in order.

When to Buy a House Without a Realtor

Using a buyer’s agent doesn’t guarantee you’ll save money. In some cases, you could actually end up paying more out of pocket. A seller and his/her agent who’s forced to pay the commission of the buyer’s agent might just raise the selling price to compensate.

Also, some buyer’s agent agreements include a clause that says that the agent gets a commission on any home purchase, even ones where you found the listing yourself or the seller refuses to pay the buyer’s agent commission. In contrast, if you buy a house without an agent’s assistance the seller might be willing to negotiate and lower your purchase price.

How to Buy a House Without a Realtor

You might be better off doing your house hunting yourself if you feel comfortable speaking with sellers and you have time to find listings. To get started, you can come up with a way to keep track of the homes you view and the information you gather while visiting them.

Before you begin looking at houses, it’s important to get pre-approved for a mortgage loan. That way, you can increase your chances of being able to buy the home you want. Once you’ve found a house you like, you’ll need to write an offer letter to express your interest in buying it.

A professional home inspection can also give you insight into the state of the home you’re interested in buying and the kind of repairs that might need to be done. It can be your insurance policy to know what you’re getting yourself into without having to try and figure out the home’s condition on your own.

Why You Might Want the Help of a Buyer’s Agent

Using a buyer’s agent could save you a ton of time and money. Buyer’s agents’ services include:

Finding listings and touring houses with you: Agents may be able to give you access to more listings (including those that are For Sale By Owner). They can also help you avoid paying too much for a property.
Negotiating the price and sale conditions: Your agent can serve as a liaison between you and pushy sellers or seller’s agents.
Recommending services you’ll need: An agent can connect you with mortgage lenders, home inspectors and other professionals you may need to work with.
Helping with all the paperwork involved: Because really, who loves doing paperwork?

In return for these services, the buyer’s agent typically earns a commission between 1% and 3%. As the homebuyer, you may not have to pay this, since home sellers usually pay the buyer’s agent fee.

Tips for Working With a Buyer’s Agent

If you’d rather not buy a house on your own, you’ll need to decide what kind of buyer’s agent you want to work with. An exclusive buyer’s agent will work solely with you and won’t take real estate listings of any kind. Agents that declare “dual agency” work for both the buyer and seller. But that could be a conflict of interest.

To find an exclusive buyer’s agent, you can check out the National Association of Exclusive Buyer Agents. Their website can give you a list of real estate professionals in your area if you can’t get a referral from friends or family members.

Before you begin working with your agent, there will likely be a contract you’ll have to sign that outlines what you can expect from your business relationship. It’s a good idea to read the contract carefully and negotiate the terms if necessary.

Asking your buyer’s agent follow-up questions will give you a better understanding of what to expect from your partnership. Prior to signing the agreement, you may have the chance to request a seven- or a 30-day trial period so you can figure out whether you should go with the agent you have or find someone else.

The Bottom Line

Regardless of whether you decide to work with a buyer’s agent, it’s a good idea to be as informed as possible. If you’re trying to understand the home-buying process, it’s important to read all contracts carefully and use tools like our down payment calculator to get a sense of how much a new house might cost you.

Tips for Buying a Home

You might want to talk to a financial advisor about how buying a house might impact your budget. It’s a huge financial decision that can impact a number of things in your overall financial plan and you may not want to go through it on your own. Finding a financial advisor doesn’t have to be difficult. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
Before deciding to buy a home you should determine how much house you can afford.