Buying a house without a Realtor can be tough. When you decide to buy a home on your own, you are essentially forfeiting the industry connections and years of experience that comes with partnering with a Realtor.
However, if you follow the steps below, purchasing your dream house without a Realtor can actually be stress-free. And you might even be able to save a significant amount of money in the process.
Ready to find out how?
Top 10 Tips to Buying a Home Without a Realtor
Here is everything you need to know about buying a home on your own, from start to finish:
Understand the Rarity of Your Choice
Most people choose to purchase a home with the help of a Realtor. This is because when you buy a house, you do not technically pay the agent. His commission comes out of the purchase price.
Each year, only about 10% to 20% of people would even think about completing a property transfer without the help of an agent. However, it is more common for people to try to sell their own homes to save on commission.
When a home is for sale by owner (FSBO), the seller might be willing to pay commission to a buyer’s agent for introducing the customer to the deal. But sometimes, the seller does not want an agent involved at all. This might be why you are buying with no agent.
Do Your Research on Comps
In order to understand what you should truly be paying for a particular house, especially if there is no agent involved to help you negotiate a fair price, you must look at nearby comps. Comps is an industry term for comparable sales.
Don’t both trying to base your price on what these similar homes are listed for. Only pay attention to their final sales prices. It will give you a better idea of what you should be paying.
Only Make Offers with Contingencies
Making an offer with contingencies will protect you if anything goes wrong during the inspection process or when you apply for financing. If you build these into your contract, you will be safe. This is because if everything does not go to plan, you can legally cancel your contract and receive your earnest money.
Don’t Skip the Home Inspection
Don’t just hire any home inspector. Because you don’t have a Realtor as back up in the process, be sure to ask around for recommendations.
Read reviews. Check references. Be sure that the person who is searching for issues in your potential home will do his due diligence. This is especially true because you won’t have an agent to coach you on the types of inspections to complete.
Hire a Lawyer
Because you do not have a Realtor as an advocate in the home buying process, it is in your best interest to hire a real estate lawyer. The lawyer does not need to be a part of the entire process. You really only need him to look over any contracts or offer short pieces of advice in a pinch.
But you can rest easy, as real estate advice is not usually too expensive. You will typically pay about $200 to $500 for these services.
Insure Your Title
You want to make sure that the title to the home you want to purchase is clear. This is because the title is the document that grants you legal ownership of a property.
A title search will ensure that the title is clean and free from liens or encumbrances. After the search comes back clean, make sure to insure your title to protect it in the future.
Understand You Might Pay More Closing Costs
Without an agent to fight for you, you might be tricked into paying more closing costs than is normal for buyers. Be sure to hold your ground on the negotiating table and know what is expected of you.
Know the Risks of Non-disclosure
Because you are buying a home without a Realtor, you might not receive all of the seller disclosures. The seller might not do this to you on purpose. However, if he does not have an agent as well, then he might not know what he is supposed to tell you about.
So do your due diligence. Make sure you know about the history of the home and any tragedies it holds – be it mold or murder.
Double Check Your Mortgage
If you buy a home without an agent, you won’t have any help securing financing. Because of this, much like hiring a home inspector, you need to take the time to do research. You need to find an honest lender with a reputation for closing on time. And don’t forget good rates!
Have Patience and Tenacity
Buying a home without a Realtor doesn’t have to be stressful.
You just have to take a deep breath, double down, and push through the process with grit and determination. If you do your research and double-check yourself at each step, success is likely yours.
Would you still like the support of an agent while you purchase a home? No worries! Clever’s professional and knowledgeable agents will be there every step of the way. Call us today at 1-833-2-CLEVER or fill out our online form to get started.