Do I need a real estate agent to buy a home? Mortgage Rates, Mortgage News and Strategy : The Mortgage Reports

Table Of Content

• The Bankrate promise
• How to Buy a House Without a REALTOR®
• Buying a house without a real estate agent
• What are the pros and cons of buying a house without a REALTOR®?
• Hire a real estate attorney
• Buying Your First Home in Austin, TX? Here’s How Much Money You Need to Make
• Work with an agent from the beginning
• How To Buy A House Without A REALTOR®

When you have an agent, you have access to this information plus the agent’s network of realtors, clients, and business contacts. This means they hear about off-market listings (also known as pocket listings or quiet listings) which are homes that are for sale but are not listed on the MLS. If you’re looking to buy in a competitive market, finding out about a home before everyone else can give you the jump on homebuyers with deeper pockets. There are a lot of moving parts that go into buying a home, and working with an agent can save you time and money and stave off potential headaches. Take some time and interview a few different candidates to find an agent you trust to guide you through the process. If you’re concerned about being able to afford their commission, know that the buyer’s agent’s fees are typically paid for by the seller, not the buyer.

The Bankrate promise

Add in scheduling all the home visits, conducting price negotiations and navigating all the paperwork, and it could seem like you’re working another full-time job. If you are focused only on buying a newly built home, you likely could work out the arrangement directly with the builder. About 6% of buyers worked with a builder or builder’s agent to purchase a home in 2020, according to the NAR survey. Knowing her market, and having access to exclusive sites with even more listings than the Muellers could see, she knew of any new housing inventory that hit the market in their price range.

How to Buy a House Without a REALTOR®

A fixed-rate mortgage has an interest rate that doesn't change for the entire loan term. Your monthly payments will stay the same with this type of mortgage. It’s usually a bad idea to hire a friend, relative or neighbor as your agent. If Judge Judy has taught us anything, it’s that mixing business and pleasure can lead to damaged relationships and nasty televised lawsuits.

Can Buyers Contact a Listing Agent for a Showing? - Realtor.com News

Can Buyers Contact a Listing Agent for a Showing?.

Posted: Thu, 01 Sep 2022 07:00:00 GMT [source]

Buying a house without a real estate agent

This helps ensure the agent you select is reputable and the right fit to assist you as you embark on your homebuying journey. Although you’re not legally required to use a buyer’s agent, it may be worthwhile to hire the help. Plus, it won’t cost you anything since the seller covers the agent’s commission. Some states require that a real estate attorney be involved in every home closing while other states allow real estate agents and title companies to handle it. South Carolina, where Rhyne practices, is one of the states that requires a real estate attorney to conduct real estate closings in person. “You cannot conduct a real estate closing legally in South Carolina without an attorney being involved pretty heavily,” he says.

What are the pros and cons of buying a house without a REALTOR®?

Think You Can Buy a Home Without a Real Estate Agent? You Can—but Here's Why You Might Botch the Job - Realtor.com News

Think You Can Buy a Home Without a Real Estate Agent? You Can—but Here's Why You Might Botch the Job.

Posted: Thu, 18 Apr 2024 07:00:00 GMT [source]

REALTORS® assist individuals with buying, selling, and renting real estate property. This can involve generating leads, counseling clients on the selling or buying process, and negotiating. When you're ready to buy a home, you'll need to consider whether or not you want to work with a REALTOR®.

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Whether you’re a first-time home buyer or a seasoned homeowner who’s purchased many homes, it’s never a bad idea to work with an experienced real estate professional when you are buying a home. Once you set a budget, you’re ready to begin searching for a house that aligns with your needs. You can attend open houses or contact the seller’s listing agent to schedule a tour. REALTORS® can be particularly helpful in the process of making an offer. Local REALTORS® will have a clear understanding of the fair market value of a property.

Walk through a new community recently completed by the builder and talk to buyers about their experience. Read reviews and testimonials, and get a glimpse of the builder’s financials to check for any red flags. It wouldn’t hurt to work with an agent who’s on a first-name basis with builders across the city. An agent who has established relationships can ease the process, and shows a depth of experience across multiple companies. Staying in constant contact with your builder can be a full-time job.

Don’t be afraid to interview a few potential REALTORS® to find an agent that aligns with your unique needs or buying strategy. For example, ask potential REALTORS® about their approach to finding an ideal home and select an agent that prioritizes your needs. Buying a house without a REALTOR® can save you some money — though only in the right circumstances. Before you decide to go it alone, learn more about what to expect when working with a REALTOR®. The loan amount is the amount of money you plan to borrow from a lender. Homeowners insurance also provides liability insurance if there are accidents in your home or on the property.

Sellers are happy to let a buyer’s agent have the code to their lockbox to show their home. However, they’re not willing to allow an unlicensed stranger total access to their home. This means that you’ll have to visit the property when either the seller or the seller’s agent is available, making scheduling showings both time-consuming and difficult. If all goes well, the seller/seller’s agent may be willing to reduce the purchase price because they know commission won’t be paid to a buyer's agent. Once an offer is accepted, you’ll likely need to prepare a check or wire transfer for an earnest money deposit.

Next, apply for a mortgage loan, research the neighborhood, find a property and ask for Seller Disclosures. Your final steps include hiring a home inspector and lawyer and negotiating and closing on your new home. Some disadvantages of buying a home without a REALTOR® is that you may miss out on housing inventory that’s only available to agents who have access to tools like the multiple listing service (MLS). REALTORS® also use comparative market analysis (CMA) to find comparable properties to determine an asking price.

An experienced real estate attorney will be a resource as soon as you start dealing with the paperwork and legalities of buying a home without a realtor. Plus, they’ll help you navigate documents, resolve disputes, and make informed choices, so you can feel assured that your transaction is airtight. That’s because the seller usually pays the buyer’s agent’s commission fees, which means you won’t have to pay extra during closing for your agent’s commission. It’s tempting to think that if you don’t use a buyer’s agent, their part of the commission can go in your pocket, but this is generally not the case. The commission rate is agreed upon via a contract before the listing even goes on the market.