Can You Buy A Home Without A Real Estate Agent?

Yes. This is the short answer to that question, however, as you are about to discover going it alone requires thorough fact checking, diligence, and attention to detail. What follows is a brief overview of what is required in purchasing a home without the assistance of a real estate agent. There are legal and procedural variations from county to county and state-to-state, so if you're planning on such a purchase, it is imperative that you do your homework! (Please note that this is a very generalized summary of the process, and should not be considered legal or investment advice.)

1. Choose a mortgage lender and get pre-approved for a mortgage. That way, you'll know which homes are in your price range based on how much financing will be available to you. Prior to starting your house hunt it is a good idea to obtain a pre-approval letter from your lender.

2. Make a list of what is important to you in a home. Consider aspects such as architectural style, lot size, age of home, neighborhood, area amenities, school districts, and proximity to work, shopping and recreational venues. Ask yourself if you'd be happier with a new house or a fixer upper.

3. Based on your requirements, begin your independent search. Without a realtor, you will need to ensure that all the bases are covered. Thoroughly research any area that you are considering to make sure there are no surprises. For example, investigate points such as crime statistics, traffic patterns, noise levels, and air quality. For the home's geographic area, conduct a web search to uncover any unresolved issues that may exist in terms of infrastructure or utilities. For example, is the home in a part of town prone to flooding or power outages?

As you look through real estate listings, use a notebook to list all the homes you are interested in. Allow space to rate and list the positive and negative features of each property, such as overall appearance, curb appeal, and neighborhood amenities. Is it conveniently located to facilities, goods, and services that are important to you?

4. When you have 2 or 3 houses that meet most of your criteria, schedule a showing with the seller. You may be able to arrange this directly with the seller, or their realtor (contact information will be included in the listing). Try also to attend any open houses that are being held in any of the neighborhoods you're considering.

5. During each showing, use a detailed checklist to note any repairs or updates that the home is in need of. It's most effective to take notes room by room. Don't forget to assess the home's outside space as well.

6. When you find a house you're ready to make an offer on, you'll want to obtain a copy of the home's disclosure form to see if there are any issues that you'd consider a dealbreaker. You'll also need to look at what price similar homes in the neighborhood that have recently sold went for. This is to ensure that the "for sale" price is not inflated. Carefully go over all of the information you have collected and determine what amount you would be willing to offer for the house. You will handle the price negotiations with the seller. You may want to have a realy estate attorney review the purchase contract before executing it.

7. In the time between the offer being accepted and the closing there is a lot that must be done. This includes the home inspection, appraisal, title search, title insurance, termite inspection, flood search, arranging for hazard insurance, etc. A real estate attorney, title agent or closing agent are vital to the closing process.

8. Before the transaction is finalized the buyer should always take the time for a final walk-through. That is to ensure that previous requests have been met, especially in terms of repairs and issue brought to light following the home inspection.

Although it is entirely possible to buy a home on your own, it is a multi-faceted process. Here are a few more pro/con points to consider if you're still undecided.

PROS-

-You represent yourself and therefore your best interests.
-Without a realtor, you may be able to locate a FSBO at a great price and save the up to six percent of the purchase price charged by real estate agents.
-When you act alone, you are in charge of setting the pace for what takes place when, such as inspections, appraisals, and closings.

CONS-

-When you work with a real estate agent, you have access to all of the MLS listings and data, as well as the agent's experience, and knowledge.
-An agent is familiar with the overall process including inspections, negotiations, closings and the comparative market analysis.
-Without an agent representing you, it may be difficult to approach some sellers.

Finally, many potential homebuyers have the misconception that they will have to pay their agent commission on the sale. Actually the commission on the sale is paid by the seller, not the buyer. On the other hand, you may be able to negotiate a lower price when a seller does not have to pay real estate commission out of their proceeds.