How to Decide Whether to Buy Through a Realtor or by Yourself
Buying a home without the representation of a real estate agent may save you some money - but be sure you know your way around a real estate transaction, or you could get yourself into trouble.
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Instructions
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Decide whether you know enough about the home buying process to represent yourself. Are you familiar with the laws concerning the transfer of real estate? Can you protect yourself against responsibility and liability if something goes wrong?
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Ask yourself if you are willing to discuss money and negotiate the offer directly with the seller - or if dealing with the seller makes you uneasy.
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Determine whether you're comfortable dealing with the processes of setting up and evaluating home inspections, finding a lender on your own, arranging for the title transfer, and other tasks a real estate agent would ordinarily handle.
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Decide whether you can deal with the added stress of buying without representation and whether it's worth the money you can save by representing yourself.
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Tips & Warnings
If you decide to go it on your own, at least consider hiring a real estate attorney to review your offer.
If you buy without an agent, be sure to negotiate the purchase price to reflect the commission you're saving.
Realize that a real estate agent will know the latest laws regarding the sale and transfer of real estate that will protect you.
If you work without an agent and want to buy a home for sale by the owner (FSBO), realize that the seller is looking to cut costs, too, and may not be willing to negotiate to compensate for your working without an agent.
Remember that emotions can run high in real estate transactions; agents can act as a buffer to help things run more smoothly.
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Comments
View all 17 Comments-
heatherbison
Jan 25, 2009
This is awesome information. I think we are living in a "diy" age. More than ever before more people are taking tasks normally left to "professionals" and completing them themselves. Real estate is not the exception! "The Pizza Delivery Millionaire", by Rick Vazquez, for example is a great tool to get started! The internet is a great resource, especially sites like this. Anything you want to learn is pretty much at your finger tips. -
heatherbison
Jan 25, 2009
This is awesome information. I think we are living in a "diy" age. More than ever before more people are taking tasks normally left to "professionals" and completing them themselves. Real estate is not the exception! "The Pizza Delivery Millionaire", by Rick Vazquez, for example is a great tool to get started! The internet is a great resource, especially sites like this. Anything you want to learn is pretty much at your finger tips.
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mpoblete
Nov 20, 2008
You should have had negotiated with the seller's realtor up front, the market nowadays is not like you can just pay 3% for a realtor to showup and do a few things when most of the research was done by you. As someone said, all you need on your side is a real state lawyer, title company and inspection, you can find that easily for much les than 3%. You can walk in an open house and tell the seller's agent you don't have a realtor and you won't need one but they will have to knock 45% off their commision (it can't be 50% because they won't have a reason to accept). Bottom line is realtors should review their commisions, in times like this, we can't afford to give 6%.
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ninikins71
Sep 14, 2008
why would you not want to hire a realtor to represent you when you are buying real estate? you're not paying the realtor, the seller is. in most cases, there is already an agreement between the seller and their agent as to the amount of commission that is being paid to them to market the listing, usually between 5-6%. this amount probably wouldn't change if it is sold to an individual who isn't working with a realtor. knocking off 3% from the purchase price just lowers your offer by 3%...that's it. if someone with a realtor shows up and offers at asking, your offer is lower and that's all the seller sees since they already have the listing commission agreement. the reason why this was difficult to explain to the seller's agent is because it doesn't make sense. on top of that, you are asking the sellers to completely trust someone who does not have the experience to handle 50% of the
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ninikins71
Sep 14, 2008
transaction -- you. imagine the headache and stress they will have to endure to make sure their home closes escrow on time. this is likely another reason why individuals without professional real estate representation have trouble coordinating with listing agents. but, if you have absolutely nothing to do but find real estate for yourself and handle the responsibilities of a full-time agent and pretty much stress yourself out during the 30-45 day escrow process, then by all means, represent yourself in all your real estate transactions.
