Buying a House Without a Realtor – Can You Do It?

The short answer is yes you can, but you shouldn't because it's extremely complex and not worth it.

Buying a home is an exciting and terrifying prospect for many people. With the market in flux, it can be hard to know what you're getting into when buying a house. We have all been there before. You are looking for a place to buy, and the search is narrowing down to one or two homes that both have pros and cons. 

The big question is, can you buy a house without a Realtor? Whether you are a first-time buyer or an experienced investor, buying a home can be one of the most stressful and time-consuming experiences. The process has changed drastically in the last few decades, and it is now possible to purchase a home without using the services of a realtor. 

But to do so, you need to be an experienced and savvy investor with knowledge of all the intricacies that come along with buying a home. A buyer who does not have these requirements might find themselves purchasing a property they don't want or can't afford because they are clueless about what to look for when making such an important decision.

So before you go ahead and purchase a home without a realtor, it might be helpful to check out the consequences that come with it. 

Why should you buy a home with a realtor?

Homes are the biggest purchase you'll ever make in your lifetime. They're also one of the most expensive and can take a lot of time to research, so you must find someone who will help you through the process. Buyers often feel overwhelmed by all their options when deciding which home to buy. 

A Realtor not only has experience in buying homes, but they know a whole lot about the local market, too - information that is invaluable for buyers and sellers alike! Realtors have access to listings before anyone else does and can set up showings right away; plus they can negotiate with sellers on behalf of buyers while always keeping them informed every step of the way! 

Having the right realtor on your side can help you find and negotiate the best deal, ensuring that your money goes as far as possible. With so many homes for sale in your area, it's important to have an agent by your side who knows all about the market and plans to work with you until you find exactly what you're looking for.

If you’re not working with a Realtor, prepare yourself to do the following things:

  • Find the perfect home for them at the best price possible
  • Understand all of the steps in buying or selling a house
  • Learn the law and rules that apply when buying a house
  • Prepare a list of properties based on your criteria (location, size, price)
  • Negotiate to get the best possible price
  • Coordinate inspections, appraisals, and title searches
  • Go through the (very complicated) mortgage process by yourself

Sounds like fun, huh?

The point is, when you are ready to buy your home, the process can be complicated. It's not uncommon for buyers to feel overwhelmed by the amount of information out there about real estate. That is why it is so important to have a trusted professional on your side who knows all about local markets, regulations, financing strategies, and more. 

If you've been looking into hiring a Realtor but don't know what questions to ask them in an interview, use this list as a guide:  

  • How many years of experience do you have? 
  • How many transactions have you handled in the past year? 
  • Can I see some recent listings that were successful? 
  • Do you specialize in residential property sales or commercial sales?

Why do some homebuyers not work with a realtor?

When you buy a house, many decisions go into the process. One of them is, "Should I work with a Realtor?" For some buyers, this decision may be easy to make, but it can be difficult for others. 

The main reason is that they don't have the time or money for a home search, and many people think that realtors cost too much. But, when you consider how much more expensive it would be if you had no one negotiating on your behalf, it's clear that hiring an agent is the better option.

Most buyers don't hire a Realtor because they believe that they can do research on their own and save money in the process. This might be true, but it also means more time spent trying to figure out what's available and what's not, which could lead to missing out on opportunities for an offer when someone else offers first! 

Hire a professional who knows the market inside and out so that you can spend more time focusing on other aspects of your life while still achieving success in purchasing or selling your property.

Aside from the things mentioned above, here are some possible reasons why you might not choose to work with a Realtor:

  • You want to buy an already-built home and don't need help finding one.
  • You're looking for your first home and only have $500-$1000 in savings for your down payment. 
  • You live in an area where homes sell quickly, and prices vary widely from neighborhood to neighborhood each week. 
  • You need to control how much commission is paid on the sale of your property, or you can't afford any at all.
  • You may have a preconceived notion that you will not be able to afford the home of your dreams because you can't qualify for a mortgage. 
  • You may think that the commission is too high or are unsure of what fees Realtors charge. 
  • You may believe that working with a realtor will add hassle and cost when purchasing property independently. 

While you may believe that it is unnecessary to work with an experienced realtor when looking for your perfect home, this simply may not be the case!  In today's market, it is more important than ever to work with a realtor. Facing the daunting task of buying or selling a home can be an overwhelming decision. The rapid market changes make it difficult to keep up with the latest trends and find properties that will appreciate in value. 

That's why you should speak with a realtor, someone who is well versed in all aspects of the housing industry and has their finger on the pulse of what buyers are looking for today. A good agent will know how to navigate the current housing landscape and get you the best deal possible for your needs. They also have connections that can help you find a property before anyone else does. 

Buying a House Without a Realtor - The Process

Buying a house without a realtor is difficult, and we do NOT recommend it. But here's the process anyway. 

1. Negotiate on the Price

The house listing is a powerful tool in the hands of homeowners. It can show buyers all of the features they are looking for in their next home and some they hadn't considered before. But did you know you can use it to negotiate with sellers?  

Many people don't know that when it comes to buying a house, you can negotiate the price!  This is because many different factors go into determining how much a property should cost. For instance, if the seller needs to sell quickly or doesn't have time to wait for offers, they might be more willing to reduce their asking price to get sold. 

Other times, sellers might not know what their property is worth and will often offer too high of an amount just so they can find out what it's worth on the market. Regardless of your situation as a buyer, negotiating with the property's price could save you thousands!

2. Review the Closing Disclosure

The Closing Disclosure is a document that outlines the total cost of your home purchase. It covers everything you need to know about what you're buying, from property taxes and insurance to any liens on the property. There are many important factors when it comes to closing costs--and while it may seem tedious, reviewing this document before signing off is key in preventing costly surprises down the line. 

By reviewing and understanding this document, you can make sure that there are no surprises at closing time. If any information has changed since the estimate was created, it will appear on the Closing Disclosure. For instance, if your interest rate increased or an appraisal came back higher than expected, these changes will be reflected in this new document. It's important that you read through all of it, so you're fully aware of what to expect when going into closing.

3. Hire a Real Estate Attorney to Review the Paperwork

Buying a house is an important investment. If you are not sure about your rights as a buyer, hire a real estate attorney to review the paperwork.  With so many details that need to be considered during the closing process, it can be difficult for homebuyers to know and understand what they are signing on the dotted line. A qualified attorney will know how best to protect your interests in any given situation- whether it's reviewing contracts or negotiating with sellers.

Another reason why you should hire a real estate attorney is that many homes are sold "as-is," and if there is something wrong with them, no one can fix them but the seller. If you want to avoid any potential problems down the line, then hiring an attorney now will save you from headaches later on!

4. Get a Cashier’s Check, Proof of Insurance, and your IDs

Getting prequalified for a mortgage loan is one of the first steps when buying a house. This means meeting with a lender to learn more about what you can afford and how much lenders may be willing to lend. Most lenders require proof of income, credit history, and cash reserves in order to qualify for financing; this is known as “mortgage qualification” or "mortgage prequalification." 

  • Cashier’s Check - A cashier's check is a payment method that you can use to close your home with the lender. This won't go straight from your account to the seller, which means you'll have access to it while closing goes through. 
  • Proof of Insurance - Before the closing, you should be able to give proof that you have acquired insurance for the home you are purchasing. Ideally, the insurance should cover at least a year from the date you have purchased the house. 
  • Valid ID - Part of buying a house is showing your proof of identity. Some of the valid IDs include your passport and driver’s license. 

5. Sign the Papers and Get Your Keys

When it comes to buying a house, there are lots of documents that need signing. The contract between you and the seller covers all terms of sale, such as price, closing date, and your responsibilities for repairs.

You'll also need to sign a number of other papers relating to taxes, insurance coverage, and home inspections. Many people start feeling overwhelmed at this point, but you can always reach out to an experienced real estate agent or attorney for some guidance. 

Wrapping It Up

Buying a house can be difficult and time-consuming, but it's 10x easier with a Realtor.

It's like going offshore fishing with a private guide. It's much more likely that you won't waste time, feel lost, or come up empty-handed. Plus, remember that buying a home is an important decision, so you should get nothing but the best!

If you want more help finding a house you can call home, check out our online marketplace.

We allow people to multiply their buying power to co-own real estate so that they may stop paying their landlord's mortgage! If you're looking to start your homeownership journey, check us out.

We verify all the agents on our platform, and you don't have to pay us a dime to sign up!