When purchasing a home, the buyer typically works with a professional real estate agent. Is that always necessary? Interestingly enough, no. Here is how to buy a house without a realtor and why some people choose to go this route.
How to Buy a House Without a Realtor: The Cost
Using a professional real estate agent when purchasing a new home can be costly because of the fees paid to realtors during the process. Doing it yourself can save you money to put toward your dream home.
How to Buy a House Without a Realtor: The Financing
If you choose to buy a house without a realtor, you still need financing. If you’re thinking about purchasing a home because of reasonable home mortgage rates, the first step is to use a mortgage loan estimator and compare mortgage rates. Accompanied with a simple mortgage calculator, this will help you determine the price of a home you can afford. Then, reach out to a direct mortgage lender to get answers to all your mortgage questions and secure financing.
How to Buy a House Without a Realtor: The Search for the Right House
Working without a realtor to find the right house can be challenging but doable. Knowing what you are looking for is a huge advantage. Do you want to live in the city close to work? Maybe you have a budget and that will determine what neighborhood you buy in. Without a realtor to help you vet houses, it is important to take your time and not rush the search. When you find a home you like, contact the selling agent to make an appointment to view the home.
How to Buy a House Without a Realtor: The Disclosures
Just because you are buying a home without a realtor doesn’t mean you have to perform like a rookie. When you’re ready to buy, obtain seller’s disclosures. This is not only legally mandatory for sellers, but it is also useful information for a buyer. A few things you might see on a seller’s disclosure statement are structural issues, plumbing, heating, or electrical system problems and mold and water damage. The one disclosure that’s required nationally is the lead-based paint disclosure.
In full disclosure, disclosure laws do vary from state to state, so it is important to research the laws in your state. For those who live in a state without disclosure laws, here are some questions to ask the seller:
- In what year was your home built? Do you know of any asbestos in your home?
- Is there any mold in the home?
- What is the condition of the roof?
Most states require the seller to answer directly and honestly when asked questions about the property.
How to Buy a House Without a Realtor: The Due Diligence
Once you’ve found your dream home, check recent comparable home sales before making an offer. This will give you a better idea of the home value. Both appraisers and real estate agents use “comps” to accurately estimate a home’s value. Without a realtor, you must do this research on your own.
How to Buy a House Without a Realtor: The Offer
To submit an offer without a realtor, there are two key players you still need to have on your team: a lawyer and a home appraiser. This will ensure all paperwork is completed correctly and the home is worth the agreed-upon price.
How to Buy a House Without a Realtor: The Closing
After negotiations take place and your offer is accepted, it’s time to close on the home. Once the appraisal and underwriting have been completed, you will receive a Closing Disclosure from your lender to finalize the sale. This document includes all the information regarding your home loan and purchase. Once it is signed, the closing is complete and you are officially a homeowner who bought a home without a realtor and without errors.