Buying a house without real estate agents

[Peter Johnson]

Hey folks. As if leaving on vacation in a week wasn't enough, I've just discovered an opportunity to purchase a house without any real estate agent involvement. I'm wondering if anyone here has ever completed such a transaction, and if so, if you've got any advice (or warnings about pitfalls) to share.

Thanks.

Peter

[Chalupa]

I have.

Make sure you get a good real estate lawyer. I mean, you should have one anyway but definitely get one in case you have any questions.

[Dan Gould]

I can't say anything about doing it but I can tell you that Florida has a standard real estate contract that virtually all real estate agents use. If Washington has something similar, it shouldn't be difficult to hammer out an agreement. The thing is, if you are buying, what do you care if a real estate agent is involved or not? It doesn't effect your purchase price, it only effects what the seller nets out of the sale.

As Chalupa says, have a good lawyer look things over. Afterwards, you may want to get advice from the seller on how to do it yourself next time, so you can save the commissions.

[Aggie87]

A good real estate agent will walk you through the home inspection process (and any follow-on renovation work that you hammer out with the seller) and help coordinate with the title and mortgage companies and so forth, and any other related needs.

Make sure you have a handle on all the things you'll need to do.

[Larry Kart]

I sold my deceased father's house last year without a real estate agent (because it looked like there might be good offers for it before we got into the showing it off phase, which proved to be the case). But the more-than-solid real estate lawyer we had proved to be essential. We found him through friends who had used him when they'd sold their own house, a place of business, and a parent's house; he was just who they'd told us he'd be -- unflappable and very smart too. Another thing that mattered to us and might matter to you; his office was in a nearby suburb, which meant at least two things -- when we had to get something to him or from him on short notice, which happened a lot, he was 10 minutes away, not in downtown Chicago; also, when we settled on a prospective buyer, our lawyer turned out to know his lawyer (both from the same area) from previous transactions, which seemed to make things go much smoother (i.e. free from arm-twisting bullshit).

Edited March 8, 2007 by Larry Kart

[RDK]

I wouldn't recommend it. Be very, very careful.

[Chalupa]

I wouldn't recommend it. Be very, very careful.

You'll be fine. I've done it twice w/ no problems and if a lunk head like me can do it you can too. Just make sure to have a lawyer to go over everything before you sign. You owned a house in Philly, right? So you know all of the hoops that you need to jump through. If you don't know what to do your mortgage lender will. Both times I bought, the lender was on me like a hawk. Nag, nag, nag. Just make sure that your sales agreement is a contingent upon A. the property passing a home inspection AND B. you getting a mortgage. I would also recommend going to the local bookstore and looking at a couple of home buying books. Good luck.

[marcello]

Buying a house without a Realtor is easy. Get a good rea easte attorney and your own inspector, if you think that is needed.

As a developer, we have our own sales staff who are not Realtors, but deal with Realtors often.

No big deal, in your case.

Sometime the Realtor screws up the deal. Just know your comparable properties in the area to make sure that the price is right. You can get that from your local assessor's office.

[RDK]

But as a buyer, using a realtor is of no cost to you since the realtor's fees typically come out of the sale proceeds. Afaic, using a buyer's agent (at least) to purchase a house is a no-brainer. Selling a house without an agent makes some financial sense, but that only benefits the seller (who doesn't have to pay). So if you're doing the extra work to buy w/o an agent and are willing to take on the extra risk that comes with it... you better be getting a great deal to offset it. The seller will make more money w/o an agent, but what will you get out of it?

[connoisseur series500]

I bought my house w/o use of a realtor as well. Make sure the selling price is lower since the seller doesn't have to pay a realtor. The benefit should work both ways.

[Aggie87]

But as a buyer, using a realtor is of no cost to you since the realtor's fees typically come out of the sale proceeds. Afaic, using a buyer's agent (at least) to purchase a house is a no-brainer. Selling a house without an agent makes some financial sense, but that only benefits the seller (who doesn't have to pay). So if you're doing the extra work to buy w/o an agent and are willing to take on the extra risk that comes with it... you better be getting a great deal to offset it. The seller will make more money w/o an agent, but what will you get out of it?

The challenge would be if the seller is selling it without an agent (for sale by owner).

In that case, if the buyer has an agent, then his agent has no comparable agent to work with from the seller's side (and with which to split the 6% or whatever fee).

I suspect the seller isn't using an agent, and that's why Peter is buying without an agent.

Edited March 9, 2007 by Aggie87