Meta-description: This article will discuss the primary things you should consider when buying a house without utilizing a real estate agent. Click here for more information.
For the average person, the idea of buying a home without the help of a real estate agent is unthinkable. However, some real estate savvy people shop independently, which does not come without risks and pitfalls.
The real estate experts at Designlike have researched and compiled a shortlist of major things you should consider when buying a house without a real estate agent. Read more.
Considerations when buying a home without a realtor
Generally, even though you pay significantly for their fees, buying a home through an experienced real estate agent offers you a range of protections, safeguards, and services.
However, if you are knowledgeable and confident with the real estate market, you can go it alone.
There are several money-saving benefits to buying without an agent, including:
- Find a better price on a for-sale-by-owner (FSBO) deal
- Save on closing costs
- Avoiding the agent’s fees and commissions
However, as with most things, there are some cons, including
- Having less expertise than a trained, experienced professional
- Less access to industry information
- Fewer industry connections
- No trained negotiation partner
- An abundant of confusing, time-consuming paperwork
However, if you do decide to go it alone, there are some considerations that professional and independent real estate experts will all agree upon.
Get a mortgage pre-approval
When buying a home sans a real estate agent, knowing what you have to play with is essential before you begin negotiating prices with sellers. Nothing is more deflating and depressing than finding your dream home and getting knocked back on your mortgage approval.
Do your research
No matter what country you live in, there will be a myriad of real estate websites that can give you a good idea of what prices to expect in your desired area.
There is no point wasting hours driving around places you would like to call home, only to get disappointed when you look later and realize the area is well out of your budget. Having realistic expectations is vital, and if you are a first home buyer, then remember everybody started somewhere.
It is also essential to understand the market you are entering. Thanks to the internet, there has never been a better time in history to arm yourself with real estate knowledge and information.
There are also companies that provide real estate advice and services that could make buying a home independently much more manageable and at a fraction of the cost of using a realtor.
Find a property to buy
While this may sound self-explanatory, people often forget that a realtor’s job is to find homes for buyers as much as selling people’s properties.
Often a potential buyer will tell an agent what they are looking for and where, and the agent then creates a shortlist of possible best options.
This service is no longer in play when buying independently. If you are not a decisive buyer, then analysis paralysis could set in; and you will eventually have to commit to a home without a realtor’s reassurance.
Secure a sellers disclosure
A seller’s disclosure provides you with a lot of leverage and critical information about a potential property.
Vital information that you will receive on a seller’s disclosure report include, but are not limited to:
- Any structural issues that need attention
- Condition of the plumbing, heating, and electrical systems
- The presence of potentially toxic materials, such as lead paint or asbestos
- Any damage history, such as termites or storm damage
- Soil conditions and contaminations
- Water damage, mold growths, and much more
If you come under resistance from the seller to provide a seller’s disclosure report, you may want to consider hiring a real estate lawyer.
Most countries have real estate selling laws and guidelines that must be adhered to by the seller, and as a legal document, the seller must be honest and forthright with the information provided in the report.
You must negotiate with gusto!
It is not often that people buy homes from family or friends, although this does occur. However, if this is not the case, as lovely as the seller may be, you are not making friends; you are securing a major asset.
You got to put on your agent’s cap and negotiate hard for your home; you will likely be paying it off over decades, not years.
Things to consider pushing hard on when negotiating on a home may include:
- Asking for repairs
- Securing reimbursements
- Asking for discounts
- Cancel the sale as leverage if they won’t come to the party
Closing is the tricky part, and if you don’t feel that you have what it takes to play hardball, you may be better off looking for a real estate agent and taking off some of the pressure and stress.
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