A hefty 3% Realtor commission! This translates to $13,275, based on the median home sale price of $442,525. The American dream of homeownership comes with a huge price tag!
However, you can buy your dream home without a Realtor. 50% of new home buyers consider bypassing a Realtor to save on commission. Moreover, ⅓ of buyers view these commissions as a major obstacle.
You can opt for real estate websites like Houzeo and find your home online. With thousands of property listings, Houzeo.com is one of the biggest listing sites in the US.
7 Steps to Buy a House Without a Realtor
Here’s a step-by-step guide to help you through the process:
1. Get Pre-Approved for a Mortgage
A mortgage pre-approval can give you an estimate of the loan amount you can qualify for. It represents you as a serious buyer and strengthens your offer.
Besides this, a pre-approval will help you find a home within your budget. You will get a pre-approval letter if you qualify for a certain loan.
2. Search for a Property
Once you get a pre-approval letter, you can look for properties that fit your criteria and budget. You can check out different neighborhoods and choose the one that suits you.
You can also check online listings, local newspapers, and For Sale By Owner websites like Houzeo. The platform provides all the specifications with the latest photographs of the properties. With the street view feature, you can explore the surrounding area.
3. Get Seller’s Disclosure
The seller’s disclosure is a legal document that outlines the property’s condition. It typically includes potential issues like:
- Lead-based paint usage
- Structural damage
- Damage from termites
- Water damage and mold issues
- HVAC issues
- Homeowners Association (HOA) information
4. Submit Your Purchase Offer
Once you find your dream home, you can make an offer to the seller. Determine how much to offer based on the prices of other houses in the area, the number of days the property spends on the market, and its condition.
After this, draft a competitive offer letter with your proposed price, contingencies, and requests for seller concessions. Also, consult a real estate attorney to ensure your offer is legally binding and protects your interests.
5. Hire a Home Inspector and Get an Appraisal
A home inspection is important to detect all the minor and major issues with the property. Some issues, like the presence of mold, roof leakage, and structural defects, can cause serious problems. The average cost for a home inspector is between $425 and $600.
An appraisal can help you get the present value of the property. The appraiser will compare all the recent sales and determine a value based on the inspection report.
6. Negotiate With the Seller
Generally, homebuyers negotiate after the home inspection. If there are any findings from the inspection, you can ask the seller for:
- Reimbursement against the findings
- Repair
- Discount
- Termination of the home sale
7. Secure Financing and Close the Deal
After you finalize the property and clear all the legal processes and appraisals, your lender will send you a closing disclosure. You can review the disclosure and sign it. It mostly consists of a type of loan, the interest rate, and more.
While closing, some states require legal representation. The attorney will review all the documents and make the closing process smoother.
You can search for properties under your budget with Houzeo and purchase your house.
Find Homes for Sale Under Your Specific Budget
Benefits and Risks of Buying a House Without a Realtor
Here are some of the benefits and risks when you buy a house without a Realtor:
✅ Benefits of Buying a House Without a Realtor
1. Cost Savings: You can avoid the buyer’s agent commission, which is 2.5% to 3% of the home’s sale price. On a $300,000 house, this could save you between $7,500 and $9,000.
2. Complete Control: Be the boss of your property purchase. You can prioritize features and explore listings directly with the seller. Agents generally attend to multiple clients at once, which can affect your homebuying deal.
3. Direct Negotiation: You can negotiate directly with the seller. This allows you to express your interests and concerns for the property more effectively.
❌ Risks of Buying a House Without a Realtor
1. Limited Market Access: Realtors have access to the Multiple Listing Service (MLS), a comprehensive database of properties, including pocket listings that don’t appear publicly. This could limit your options and make it harder to find your ideal home.
2. Complex Paperwork: The home buying process involves a lot of paperwork, including contracts, disclosures, and loan applications. Without a Realtor, you might miss important details or make mistakes that could delay the closing process.
3. Time-Consuming Process: You’ll need to research properties, schedule viewings, communicate with sellers, and handle every aspect of the transaction yourself. This can take a lot of time, especially if you’re new to the process.
Should You Buy a House Without a Realtor?
Yes, you can buy a house without a Realtor, as it helps you save thousands on commissions. However, if you purchase a home without an agent, you must equip yourself with knowledge and expertise.
Additionally, to ensure a successful purchase, you must obtain pre-approval before house hunting. This indicates your financial capabilities to the sellers and gives you an edge in negotiations.
Get Pre Approved for a Mortgage🏡
Select Your Loan Type
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New Home Purchase
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Mortgage Refinance
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Cash-out Refinance
Frequently Asked Questions
Can you buy a house without a Realtor?
Yes, you can buy a house without a Realtor. This helps you save on commission fees and negotiate directly with the seller. However, you have to find properties, handle inspections, and navigate through legal paperwork all by yourself.
How do you buy a house without a Realtor?
First, you should get pre-approved for a mortgage. Then, search for properties on real estate websites like Houzeo, Flat-Fee MLS services, or FSBO websites. Negotiate directly with sellers, handle all paperwork, and close the deal.
Do you need a Realtor in Florida to buy a house?
No, you do not legally need a Realtor to buy a house in Florida. You can purchase a home directly from sellers through FSBO listings, control your home search, and negotiation in the Sunshine State.
» Florida Homes For Sale By Owner: Click here to view properties for sale in Florida.
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