buying a home without a realtor

Buying a house without a realtor: 6 reasons it might fail · 1. There's a language barrier. · 2. You don't like what you see. · 3. You get. It is legal to sell your California home without a real estate agent, and it can even be to your advantage. Learn how to go about it the. Real estate agents are negotiation experts. If you buy a home without an agent, you'll have to negotiate and decide how much to offer on your.

Buying a home without a realtor -

Participation in the Verified Approval program is based on an underwriter’s comprehensive analysis of your credit, income, employment status, debt, property, insurance and appraisal as well as a satisfactory title report/search. If new information materially changes the underwriting decision resulting in a denial of your credit request, if the loan fails to close for a reason outside of Rocket Mortgage’s control, or if you no longer want to proceed with the loan, your participation in the program will be discontinued. If your eligibility in the program does not change and your mortgage loan does not close, you will receive $1,000. This offer does not apply to new purchase loans submitted to Rocket Mortgage through a mortgage broker. This offer is not valid for self-employed clients. Rocket Mortgage reserves the right to cancel this offer at any time. Acceptance of this offer constitutes the acceptance of these terms and conditions, which are subject to change at the sole discretion of Rocket Mortgage. Additional conditions or exclusions may apply.

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Buying A House Without A Real Estate Agent: Should You Do It?

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Client will receive a closing credit of $1,000 on their Closing Disclosure if they receive a Verified Approval Letter and lock their rate within 90 days or lock their rate during the promotional period on a new purchase loan with a 30-year product. Offer valid between 12:01 a.m. ET on November 29, 2021, and 11:59 p.m. ET on November 30, 2021. Offer valid on team member referral loans. This offer cannot be retroactively applied to previously closed loans or previously locked loans. Offer does not apply to new loans submitted to Rocket Mortgage through a mortgage broker, non-agency jumbo loans, Charles Schwab loans, portfolio loans or Rocket Pro Realtor loans. Rocket Mortgage reserves the right to cancel this offer at any time. Acceptance of this offer constitutes acceptance of these terms and conditions, which are subject to change at the sole discretion of Rocket Mortgage. Offer may not be redeemed for cash or credit, and no change will be given if the discount amount exceeds costs otherwise due. Offer is nontransferable. This is not a commitment to lend. Additional restrictions/conditions may apply. Offer not valid with any additional discounts or promotions, except for HLBP and Rocket Pro Originate and Relocation offers.

Client will receive 0.5 points off current pricing on a refinance with a 30-year product (includes conventional, FHA and VA products; excludes non-agency products). A point is equal to 1% of the loan amount. This offer is only available to clients who lock their interest rate while completing the application process between November 29, 2021, at 12:01 a.m. ET and November 30, 2021, at 11:59 p.m. ET. This offer cannot be retroactively applied to previously closed loans or previously locked loans. Offer does not apply to new loans submitted through a mortgage broker, non-agency jumbo loans, Charles Schwab loans, portfolio loans or Rocket Pro Realtor loans. Offer valid on team member referral loans. Rocket Mortgage reserves the right to cancel this offer at any time. Acceptance of this offer constitutes acceptance of these terms and conditions, which are subject to change at the sole discretion of Rocket Mortgage. Offer is nontransferable. This is not a commitment to lend. Additional restrictions/conditions may apply. Offer not valid with any additional discounts or promotions, except for HLBP and Rocket Pro Originate offers. 

§Closing cost savings based on Rocket Mortgage average refinance loan size of $243,467 and closing costs of $6,071. 20% savings for this example is based on 0.5% credit on refinance costs in relation to average refinance closing costs. Closing costs include all applicable fees and points. Costs exclude standard prepaid charges, pr  orations and escrow. Savings may vary. Data compiled as of November 18, 2021. 

Contents

Are you thinking about building a new construction home?

Do you need a Realtor for new construction?  After all, isn’t working with a builder easy?

Buying a newly built home can be exciting.  If you have ever visited a builder’s model home, you know what I am talking about.  When you first step into the new home, you see how beautiful the home is decorated. 

The features of the model home are top of the line, and it looks and feels great. It’s like buying a new car, remember that new car smell?  It is designed to entice you and get you to buy.

See the Article:How to Choose a Lot for a New Home

Before you know it, you have sat down with the nice salesperson and started talking about price…..BUT HOLD ON!  This is one of the most important purchases of your life. 

Even if it’s your 4th or 5th home or perhaps your first, there are still a few things that you should consider BEFORE walking into that model home the FIRST time. 

💰Can You Lose Money Buying a New Home without an Agent?

Buying a new home without a Realtor is an option. However, many buyers just like you in hindsight wish they would have understood that you can have an agent represent you when you build a new home, and it does not cost you any money.

What does the Realtor do, or what is the real estate agent’s role in helping during new construction? First, you have to hire a good agent that is going to be with you during the entire process. So, asking the right questions or finding articles, like this one can help you pick the right Realtor.

Saving buyers, like yourself money, during the building process is one of my favorite things to do. Plus, I also guide you in the design center. If you are relocating from another area, you may not know that for instance, homes in Florida have a worse resale if you have dark kitchen cabinets, wood floors, etc.

If you are coming from an area such as California or Texas, the decor is different and if you choose the wrong designs and color selections, you will be paying for it later in your resale value!

🔑What is the Role of a Realtor in New Construction?

A good real estate agent that represents a buyer during the building of a home plays different roles during the building process. Your Realtor should be present from the start and perhaps even introduced you to the community you decided to invest in.

new construction lots

Why would you want to do all this work when you can have someone help you for no $$?

Below is an example of the many different ways your agent can assist you during your home building process.

  • Community Selection: What amenities are you looking for in a neighborhood? For instance, if you are not a golfer, do you want to pay for course upkeep and yearly buy-in fees?
  • Location and lifestyle: This can play an important part in areas you may want to consider. A Realtor specializing in new construction also knows when new neighborhoods will be opening and pre-sales on lots. Many times, brand new communities that are taking pre-sales will save you $$.
  • Explanation of Process & Deposit Requirements: Although the builder’s contract and their sales employee will explain the process, having someone guide and pace you with what is coming next alleviates the guesswork.

You Might Like the Article: What Are Buyer’s Closing Costs

  • Lot Selection: Did you know that the orientation of your lot along with location can kill your resale? Agents that work with buyers hear feedback that you may never encounter.
  • Structural Options & Initial Contract: Most builders will have more than 1 contract for you to sign. However, one of the most crucial is the structural contract. This is about the footprint and permitting process. Missing one of these selections can be extremely costly.
  • Design Center & Pool Appointments: This is fun and stressful all at the same time.Having someone by your side that can help guide you in what selections might be cost-effective aftermarket (when you own the home) is invaluable. We also know design trends and what is NOT selling!
  • Attend Meetings with You & the Construction Manager: There will be several meetings during your building process. Many of my clients are not here during construction. I attend the meetings and set up a Video Chat during those meetings so that you can be present. If you are nearby and can attend, your Realtor should be with you.
  • Inspections: Checking the builder’s work is always a good idea & can save you from costly repairs years from now. Although the county will inspect the builder’s work, do not place all your $$ and investment in an over-worked government employee. I want an inspector to find everything wrong and I have just the right person to do it!
  • Mortgage Negotiations: Most of the builders have a “preferred lender”. These lenders usually have a relationship with the builder’s company or are owned by an affiliate of the builder. So, they are making $$ off that loan. Usually, there is an $ incentive to work with their preferred lender. However, sometimes their lender isn’t giving you the best deal. Your Realtor has relationships with lenders and can help you with negotiating a better rate.
  • Punch-Out Walk-Through: Prior to closing, the builder will walk the home with you. This may be your Only chance to find cosmetic items that need to be repaired by the builder before closing. Some builders do not warrant cosmetic repairs after closing. It is hard to prove who really dented or scratched a cabinet, cracked a paver, or broke a faucet. Having someone that has walked hundreds, if not thousands of homes can be a great asset!
  • Vendor Recommendations: Once you move in you made need additional things done around the home such as changing light fixtures, painting, or installing blinds & shades. We know great electricians, movers, and other providers who offer great service and are responsible people. We have proven relationships to make your life and move easier.

If you have questions about New Construction Neighborhoods or Builders, 

contact me, Sandy Williams direct at +1 (305) 962-5464

or email me at [email protected]

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📍The Process of Buying a New Construction Home

See the Article: Secrets Builders Don’t Want You to Know

Buying a new home, can seem like an easy task, right?

1. You walk into the builder’s office.

2. Choose a model.

3. Sign the contract.

4. Choose your options.

5. Sign another contract.

6. Work with the lender

7. Walk through your home before closing.

8. Close.

It’s easy, right?  Not really.

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🏡Hire a Realtor That Has Experience Selling New Construction Homes

Buying a new construction home

I recently built a new home and have represented twelve buyers through their new construction process in the past 4 months.

I am convinced now more than ever that buyers need an advocate in their corner, that is not an employee of the builder.

Not all real estate agents are the same.  Some actually specialize in new construction homes.  We have established relationships, know the better construction managers in various communities and know what design options are less expensive when done after-market.

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💲Who Pays Realtor Commissions When Buying a New House?  

A Realtor gets paid by the builder.  It is in their marketing fee. Whether you hire an agent or not, the fee is there and will not be removed.  

However, the agent must be with you during your initial visit. 

It is fun to go and check out different builders and narrow down your final communities.

However, If you do go visit a builder’s sales center without your Realtor, don’t register or give your name and information. 

They are not going to ask you to leave if you don’t tell them your name.  I have had many clients not give their names upon their initial visit.  Or they tell the builder, I have a Realtor, and I will not provide information until she is here with me.  

*If you are visiting a new construction sales center without a Realtor, you may be jeopardizing your opportunity to be represented later on! *

I recently worked with a buyer to help him find the perfect lot, floor plan, and even sold his previous house. 

But, 2 years ago, when the builder had the initial Grand Opening, he and his wife wanted to check out the brand new community-they gave their info, not thinking anything about it. 

Guess what?  The builder told us that since they were in 2 years ago, they would not honor my buyer’s request to be represented in his new build.  So, be very careful with the information you share.

In this competitive buyer’s market, not having a real estate agent consistently checking on lot availability while developing relationships with the builder’s employees may slow down your chances of getting your desired location.

I have received numerous calls from buyers just like yourself that have wished they had representation.  But it was too late!  Once you have signed that contract, you are on your own.

See the Article: Should I Get My New Home Inspected 

Realtors sell over 70% of all new construction homes, according to the National Association of Realtors.  But, what does that mean to you, the buyer?  It means that an agent has clout with the builder, especially if the agent is associated with a large, national firm. 

Statistics show we will be back if that builder does a good job for you.

See the Del Webb Neighborhood Here 

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💰Talk to a Mortgage Lender Early

Many large, tract builders have a relationship with a lender or may even own a mortgage company. Some builders will offer you an incentive (contribute to closing costs)  to use their preferred lender. However, the interest rate you are quoted and the fees may not be that competitive.

See the New Community: Indigo at Lakewood Ranch Here

The interest rate being offered by the builder’s preferred lender may cost you more money in the long run versus the compensation that the builder was willing to give you in closing costs.  

Shopping around for a lender can create a competitive environment and make the builder’s lender offer you a better rate.  I recently helped a buyer with their mortgage options and was able to get my buyer a better rate, as well as more closing costs assistance because we negotiated.

If you are a strong buyer with a good credit score, you have options and more bargaining power than you think.  A real estate agent has relationships with mortgage lenders that perform. Most mortgage lenders business is through referrals. A bad lender, that overpromises and under delivers doesn’t bode well with a real estate agent.  So, ask your agent and shop around. 

However, beware of internet-based companies that may be working out of state.  Although they are held accountable by federal guidelines, there is no relationship accountability.

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📋Know the Contract the Builder is Going to Use

Too many buyers get blindsided by the 30-100 page contract the builder is going to present to you.  The builder’s purchase agreements are written by the builder, for the builder.  It is a one-sided contract, meaning it leans towards their best interest.  

Knowing what you are up against before it is too late may save you from losing your deposit if things do not work out.

I recently had a large, experienced builder attempt to have my buyer sign an addendum that was not referenced in the original contract. That addendum, if signed by the buyer, could have cost them thousands of dollars.  

The salesperson for the builder tried to tell my buyer that if the addendum was not signed, they would lose their $15,000 deposit.  Not true. But remember, that salesperson works for the new construction builder, not you.

Please, even if you do not hire an agent to help you through the building process, don’t just believe everything you are told.

Hire an attorney to review the builder’s contract if you are not seeking advice from your Realtor. 

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⚒How Are the New Homes Constructed?

building a new house

Since we live in a Hurricane state, there are building standards that must be met.  However, some builders will do the bare minimum to comply.

Comparing builders just on price point may leave you a little disappointed after that fact.

For example, not all electrical panels are created equal. Since most of us use computers or have home offices, we use power on demand, which may mean your electrical breaker is going to trip every time your printer turns on.  I am truly speaking from experience.  Ask and inspect.

Find out the construction process, and the materials used, such as wood studs vs metal. In addition, what type of material is the builder using for plumbing?

Don’t take for granted that the county ordinances and building codes will be good enough for you.  I was surprised that one local builder is using plastic tubing for water instead of PVC pipes.  It doesn’t mean their building practice is wrong, it is just something you should know before you sign the purchase contract.

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🔎Can I Look in the Showroom?

All those selections!  Ah yes, that wonderful showroom where you get to choose your cabinets, flooring, even the towel racks.  Upgrades!  Upgrades=$$.  And yes, some upgrades make sense.

Doing a little homework about how much certain things cost, like a garage door opener from a hardware store, vs paying for it during the new construction process, can keep you from losing a lot of money.

Having your Realtor there with you during the selection process can help you determine the cost of some items and what can be done cheaper after you own the home.   

We can prepare a summary of values in the neighborhood and use that as a guideline for your improvements.   Sometimes your agent will play devil’s advocate too.  We are that person sitting on your shoulder asking you, do you really need this?

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You Might Be Interested in the New Neighborhood: Esplanade Golf & Country Club

💸Can I Over-Improve My New Home?

Building a new home

Yes and this ties into the appraisal and resale of your home.  Going into the builder’s showroom and making upgrade selections can put you in a position of having a home that is overpriced, should you ever decide to sell. 

You may not get your money back out of your home, should you have to sell within a few years.

Knowing that the average sales price in the new construction community is crucial to the purchase of your home.  A real estate agent can provide you with sales data before you choose your selections. 

Do not rely on the showroom salesperson.  They get compensated by the builder for all those upgrades they sell to you.

Let’s face it, life happens and although you think you are going to live in your brand new home for years to come, things happen.  Don’t get stuck bringing money to closing or getting back less money than you put down.

Since I personally built a new home, I understand how easy it is to get so caught up in wanting everything perfect. The builder’s showroom is designed to be exciting and of course, it is human nature to want nice things.

Having a third party there who works for you can put perspective on your experience.

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🔑Resale and Appraisal

New home checklist

Some builders will ask you to sign a form that requires you to bring the difference between your appraisal price and the purchase price should your home not appraise.  

All those selections chosen by you in the showroom increased the purchase price of your home and therefore, your upgrades must appraise if you are getting a mortgage.  

So, be prepared to bring extra money to closing.

Selections=Resale too! Although you may have fallen in love with the dark chocolate tile to put in your bathroom, a real estate agent can at least advise you on market resale. 

Things that are permanent or expensive to replace should be evaluated on aftermarket resale. 

An agent has heard countless times from buyers looking at homes say, “I really like the house, but…”  We try to eliminate that BUT because that is where you lose money.  Maybe you have even said that yourself, which is why you want to buy (build) a new home.

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🔓Research and Select Home Insurance Company

If you are building a home with a builder in Florida, it is important to ask about insurance for your home before you sign the builder’s purchase contract. 

Homeowner’s insurance policies in Florida can be expensive compared to other parts of the United States, especially the Midwest region. Because Florida is in a hurricane state and the topography is flat (low lying areas) there may be extra fees that you are not aware of. 

For example, flood insurance and additional insurance riders for storm damage to pool cages and fences. It is not uncommon in some areas of Florida to pay for at least two policies, which can equate to thousands of dollars.  Also, you want to pay attention to the deductibles for hurricane damage. 

These are expenses you do not want to ask about after the fact.  If you are getting a mortgage, most lenders require the policies to be included in your escrow and therefore could raise your house payment by hundreds of dollars.

Asking your real estate agent about flood zones, and obtaining a few insurance quotes before you start to build could keep you from an unexpected hike in a house payment.

You may be interested in the article: Top 15 Must Know FHA Guidelines

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📈Is the Builder’s Lender Giving You the Best Deal? 

buying new construction

Realtors understand the mortgage process. Do you really want to finance that garage door opener option into your mortgage for 30 years? It will cost you 4 times the amount you could have paid for it at a local hardware store.   

Let’s see the costs associated with doing that mortgage.  A Realtor has seen countless closing statements and knows generally how much fees are for processing and underwriting a mortgage, etc. 

If you are getting a super-duper interest rate, believe me, you are paying for it somewhere else.  The federal government sets the interest rate.  It’s like buying a 2×4 at one hardware store vs another. 

They should almost be the same price, right?  If one is so much cheaper than the other, believe me, they are making it up in the price of nails they are selling to you!  It’s the same thing with mortgages.  Rates do change daily but every company should be quoting you basically the same rate.

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✅What is Punchout?  

What’s a punch-out?  It’s the walkthrough.  New homes are made by humans and humans make mistakes.  Nothing is perfect, but sometimes they can be made better. 

When you buy a new home, the builder should be doing a punch-out with you.  At least when you work with an agent, they will.  An agent will attend the walkthrough with you and with their trained eye, look for errors.  It’s the tricks of the trade we learn.

For instance, I always take my shoes off to walk on the carpet along the outside walls of all the rooms. 

Why? because that is where you will find the drywall remnants that were not swept up.  That debris will eventually show through and your flooring will wear in those spots.  Home inspections on a new home?  I would.

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🏠Buying a New Home

Buying a new home can be rewarding, after all, you are the first person to live in it.  The inside of your home is what you choose and everything is brand new for you to enjoy. 

A Realtor should make sure that your experience is positive and your investment is protected. We are your partner and advocate throughout your entire building process.  

However, you have to bring us to the beginning. We must go with you on your first visit to that model home or register your name with the builder, otherwise, you may be on your own.

If you have questions about New Construction Neighborhoods or Builders,  contact me, Sandy Williams direct at +1 (305) 962-5464

or email me at [email protected]

✴️Frequently Asked Questions

*Can You Use Your Own Realtor for a New Build?

Yes, you can! Choose a real estate agent that is experienced in selling new construction in the area that you are interested in. They will be able to research home prices in that area so you do not overspend.

*Who Pays the Realtor’s Commission if You Buy New Construction?

Almost all production builders have a marketing budget that includes paying Realtors a commission.
More than likely, the builder will not reduce the price of the home should you not hire a Realtor.

*What Does the Realtor Do During the Building Process?

This is important and you need to interview the real estate agent. A good Realtor should be there with you during the entire process.

I am there during your lot selection (super important), I can advise you on the mortgage process (and if you are getting a good deal on rates) and during both home inspections.

*What is the Role of a Realtor in New Construction?

The Realtor that you hire works for you. They should be looking out for your best interest.

That means when the builder pushes back, cuts corners, etc., your agent should be using their clout to have them perform.

The salesperson that you meet in the builder’s sales center or showroom works for the builder. If you decide to not have a real estate agent help you, then you have zero representation on your side.

*When is the Best Time to Buy a New Construction House?

If you are looking in South Florida, there are better times to buy a newly built home. Both would involve buying a builder’s spec home.
1. Buy a new construction home offseason. In South Florida offseason for real estate in June-August. If a builder is sitting on inventory homes, they become a little more motivated to sell them (think hurricane season + vacant home). There are fewer buyers this time of year. So, it becomes more of a buyer’s market.
2. The second best time to buy a new construction home is close to the end of the builder’s fiscal year. Large tract builders have stockholders and they want to report great earnings, right? I have saved my buyers thousands of dollars in price reductions by negotiating during the end of the company’s fiscal year.

Sandy Williams

I have been in real estate sales for over 20 years. I am originally from the Midwest and have been living in beautiful Florida for over a decade. My career sales are over 2,100 homes sold. There aren’t too many obstacles I haven’t encountered throughout my work history. I provide you with honest advice backed by years of experience and understand that a real estate purchase or sale is a top priority for you. Nationally recognized. Licensed FL Real Estate Instructor. Contact me at [email protected] or call 941-564-9491

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New Construction, Do I need a Realtor?

Article Name

New Construction, Do I need a Realtor?

Description

Should use hire a Realtor to represent you if you are building a new home? How does a Realtor get paid on new construction? Learn the role of a real estate agent during the new construction process.

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Sandy Williams

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Sarasota Sandy

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Sarasota Sandy
Posted in: Buying a Home Tagged in: Builders in Lakewood Ranch, building a home in Lakewood ranch, buying a new home, buying a newly built home, Buying from a builder, buying new construction, New homes in Lakewood Ranch, process of buying new construction home, Tips for buying new construction View All Buying a Home PostsИсточник: https://sarasotasandy.com/buying-new-home-need-realtor/
August 3, 2021 September 14, 2021by Hannah Tan

Updated on September 14th, 2021

While it may not be for everyone, it’s possible to buy a house without a realtor. Whether you’re looking into buying an investment property or are a first-time homebuyer, here are questions to ask when buying a house without a realtor as well as what to look out for when navigating the housing market on your own.

What to know when buying a house without a real estate agent

Let’s start by looking at some frequently asked questions about buying without an agent. 

Can one opt to buy a house without a realtor?

Yes, but keep in mind that every home purchase is unique, and you’ll have a few added responsibilities when taking the home buying process on solo. 

If you work without an agent, can you only buy homes that are for-sale-by-owner (FSBO)?

No. You can make an offer on any home just as you would if an agent were representing you.

If you buy without a real estate agent, will the seller’s agent keep the extra commission?

If you’re not careful, this can happen. Many listing agents, also known as seller’s agent, have contracts with their clients with variable commissions. If the buyer doesn’t have an agent, the listing agent automatically gets the “leftover” commission that would typically go to the buyer’s agent.

Even if you’re buying a house without a real estate agent, do you still need to hire an attorney?

Yes. You’re dealing with multiple legal contracts and processes when you buy a house, and taking this on without a lawyer can be risky. A lawyer’s services will generally cost far less than the commission collected by a buyer’s agent. (Keep in mind that a real estate attorney is required in some states even when you work with a real estate agent.)

Will sellers take you seriously if you don’t use an agent?

Every seller is different. Some might be happy to work with you, and others may not be interested. However, if you’ve done your homework, can offer proof of finances, and have all your paperwork in order (such as a pre-approval), you’ll raise your chances of a good reception from a home seller.

You don’t pay for your agent anyway; the seller does. Does buying a house without a realtor save you any money?

There’s a debate as to whose money pays the agents, but for most people, the important part is this: it’s the seller who determines what percent of a commission is paid to their agent and the buyer’s agent. If you can negotiate with the seller to lower the price of the home in exchange for them having to pay nothing to a buyer’s agent, then that’s money you can save. Learn more about real estate agent commission.

Do you need an agent to be present for inspections and appraisals?

Usually, a licensed agent is required to be present for the home inspections or appraisal process, and typically, this is the buyer’s agent. You may be able to get the listing agent to agree to be there for these tasks in the interest of closing the deal. Again, everyone is different; some listing agents will be happy to go the extra mile to close the deal, while others will insist on at least a partial cut of what would have been paid to your real estate agent. 

Should you buy a house without a real estate agent?

If you choose to go down the route of buying a house without a realtor, you’ll need to put in a little extra work to prepare yourself for the home buying process. Real estate agents have the industry knowledge and experience to navigate a home sale, so they can offer insights on what you should expect. They’re also assets when touring homes, negotiating with the seller, making an offer, and understanding the local market. 

Another important consideration is your level of comfort when dealing with the paperwork involved in a home sale. Working with a real estate agent can give you peace of mind knowing that there’s a pro on your side who understands all the contingencies, legalities, and other fine-print that you may have missed.  

However, if you’re comfortable undertaking the process yourself, here’s what you need to do when buying a house without a realtor. 

How to buy a house without a realtor 

1. Search for the right home for you

Start as you would with any home purchase — by scoping out your local housing market and narrowing down the list of neighborhoods to find homes for sale that fit your criteria. From there, you can begin budgeting for how much you can afford and find homes that fit within your price range.

2. Find a real estate attorney

Buying a home is an investment, so before you get too far down the road, it’s important to find and hire a good real estate attorney to work with. 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.

3. View homes for sale

Once you find a home online, you should see it in person either by attending an open house or scheduling a tour to view the listing. You should also be clear with the listing agent that you’re buying a house without a real estate agent. If the listing agent asks you to sign any forms, have them reviewed by your attorney first.

4. Get pre-approved for a home loan

Before you make your offer, be sure to get pre-approved for a mortgage with a lender. A pre-approval letter specifies the amount you can spend on a house and gives you an estimate on how large of a mortgage loan you can borrow and the interest rate you can expect to pay. It also reassures the seller that you can back up your offer, which is especially important when buying a house without a realtor as it confirms that you’re a serious and qualified buyer.

5. Review the seller disclosure 

Before you dive headfirst into making an offer, your next move is to find out everything you can about the home. Ask the seller for the seller’s disclosure, which lists any known issues like water damage, infestations, asbestos, and other information such as easements or repairs. You can also prepare some key questions to ask when buying a house to ensure that you’re leaving no stone unturned. 

6. Make and negotiate an offer

Once you find the right home, you’ll want to make an offer. However, you’ll want to do your due diligence and review comps in your area to make sure you’re paying a fair price. You’ll also want an eye on the local housing market to determine if you’re buying in a buyer’s or seller’s market. These pieces of information are key guides when it comes to pricing your offer. 

The listing agent may also expect to collect the share of the commission that would typically go to your agent. Make sure your offer spells out that the seller will not need to pay out the buyer’s agent’s share of the commission. This should be agreed to in writing and reviewed by your attorney. Also, be prepared to renegotiate and ensure that your offer includes all the contingencies that will protect your earnest money if the deal falls through during closing.

7. Deal with inspections and appraisals

After making an offer, you’ll need to deal with two essential tasks – the home inspection and home appraisal. You’ll need an agent present during both of these tasks; usually, the buyer’s agent handles this. Since you don’t have a buyer’s agent, you’ll need to get the listing agent to pick up the extra work regarding the home inspector and appraisal. Some may be happy to go the extra mile to close the deal, while others may demand compensation or a flat fee.

8. Close the deal

Closing on the home involves plenty of paperwork, and this is where your attorney really earns that fee. Make sure they’ve reviewed all contracts and forms. Once you’re done, the ink dries, and the seller receives the purchase funds, the home is yours.

Note: The information on this page is not intended to be legal advice. Before making a home purchase without an agent, you should consult a licensed and qualified real estate attorney.

Источник: https://www.redfin.com/blog/everything-to-know-about-buying-a-home-without-a-real-estate-agent/

Most of the time, home buyers opt to use a Realtor to help guide them through one of life’s largest financial transactions. A real estate agent’s job is to match you with a home that fits your budget and lifestyle needs, and help you navigate making an offer, negotiating, getting the home inspection, and closing on your new place.

Some buyers hesitate to use a Realtor because they don’t want to be saddled with Realtor fees. Typically, though, buyers don’t pay the commission; sellers do. The commission is 5% to 6% of the home’s purchase price and is split between the listing agent and buyer’s agent. Oftentimes, sellers build this fee into the price, which means you might pay more for the house.

Do you need a Realtor to buy a house? No. Still, going it alone can be risky. Before making your decision, consider the pros and cons of buying a house without a Realtor.

Real estate agents are professionals who advocate for your interests. In most cases, sellers have an agent working for them so you want someone on your side who has your back in negotiations and can help you understand the complex lingo in contracts, for example.

Laurie Blank, a licensed Realtor with Edina Realty in Minneapolis, says that unless you’ve been through the process of buying property before, it’s a better idea to go with a Realtor than not.

“There are too many legal loopholes and fancy terms that can get overwhelming and confusing for someone who’s not well-versed in the real estate business,” Blank says. “It seems too risky, considering real estate agents are there on a daily basis to help people make decisions, using their experience and continuing-education requirements.”

Here’s what you’ll have to do yourself if you buy a house without a Realtor:

  • Find homes that match your budget and needs. Property search sites give you a sampling of what’s available, but you’ll have to research whether asking prices are justified based on comparable home sales in the area.

  • Dig up facts on a neighborhood, including ones that a seller might not disclose that could be important to you.

  • Negotiate an offer, including the price and other clauses and contingencies in the purchase agreement.

  • Navigate the home inspection, and negotiate repairs or credits with the seller.

  • Decipher paperwork that could be filled with complex jargon and terms you don’t understand.

  • Request and review seller disclosures. You have to research what to ask for or what sellers in your state are required to disclose.

A Realtor evaluates prices of homes on the market and those sold in recent months — comparable sales (or “comps” in real estate speak) — to determine whether a seller’s asking price is in line with market data. Otherwise, you could end up overpaying for a home.

You also could wind up with a home that has serious issues, requiring repairs without help from the seller because you didn’t have an inspection contingency in place or, worse yet, skipped the inspection altogether.

“I’ve heard stories where buyers worked out terms for a contract and found multiple, serious problems after they moved into the home,” Blank says. She adds that legal jargon in the contract left those buyers with no recourse to get their money back or require the seller to pay for repairs.

Mark B. Huntley, a former real estate lawyer who now runs a personal-finance blog in San Diego, says he worked with a buyer who purchased a home without an agent and relied on his own inspection to justify why he wanted to forgo contingencies. That didn’t end well for the buyer, Huntley says.

“Turns out, the house was riddled with termites, and the buyer had no legal way to get out of the contract, so he lost his $5,000 deposit,” Huntley says.

Buying a home without a real estate agent might make sense if you have a strong handle on how the process works and confidence in your ability to navigate the deal on your own. Here are some common reasons for buying a house without a Realtor:

  • You’re purchasing a home from a trusted friend or family member.

  • You have a specific home you want to buy and have a good idea of its value.

  • You’ve hired an experienced real estate attorney to walk you through the paperwork and offer advice.

  • You’ve purchased multiple properties and understand the process.

  • The seller isn’t willing to pay the commission for a buyer’s agent, and you don’t want to pay it, either.

Buying a house involves a lot of moving parts, so you’ll want to ensure that you have all the details down. Using a Realtor can save you time and possible headaches down the road. If you do decide to buy without a Realtor, consider hiring a real estate lawyer to review the offer and purchase agreement.

    SL

    Sarah Li Cain, Bankrate.com

Источник: https://www.inquirer.com/real-estate/housing/pros-cons-of-buying-house-without-realtor-20190817.html

7 Pros And Cons Of Purchasing A House Without A Real Estate Agent

The purchase of a home is typically the single most significant financial investment that most people will ever make. Many buyers want to save money and are unsure if buying a home without a realtor a property without a real estate agent is a wise decision. There are several advantages to hiring an agent, but there are times when doing it alone is preferable. It has the potential to save you time, money, and a lot of aggravation. So, what’s the best course of action for you?

The first step is to consider the benefits and downsides of buying a house without using a real estate agent.

Pros Of Purchasing A House Without A Real Estate Agent

You Have The Control

There’s no getting around it: some people like to control their own destiny, and that’s precisely what today’s purchasers get when they don’t connect your services with an agent. You are effectively demonstrating confidence in your competence by skipping the assistance of a professional real estate agent.

If you know what you’re doing, buying a house without a realtor can be an intelligent choice. If you’re familiar with a particular community, your own knowledge could be advantageous. Furthermore, since you have no one but yourself to blame, there will be no trust issues. When it comes to buying a property, having control is a significant selling point.

You Might Save Some Money

Most buyers choose not to deal with a Realtor for one simple reason: cost. Unsurprisingly, hiring a Realtor or real estate agent is costly. In most cases, their efforts result in a percentage of the purchase price, which may be a substantial sum in today’s market.

You are not bound to pay anyone if you purchase a home without the assistance of an agent. You won’t have to pay any fees, which can turn into tens of thousands of dollars if you refuse to engage an agent while purchasing a house.

Cons Of Purchasing A House Without A Real Estate Agent

It’s Possible That Your Knowledge Base Isn’t Strong

Due to their connections with other real estate agents, inspectors, and other stakeholders, agents access information that isn’t always available online.

There’s also the matter of experience. The majority of agents work for a seasoned broker who supervises and advises them on various transactions. It may take a lot of effort to figure out what a Realtor has learned over the years on the job and through ongoing education.

That learning curve may not be worth your time, especially if the seller pays the buyer’s agent commission with no visible increase in the purchase price based on comparable listings. Check this website for a better understanding of real estate agents and their methods of working.

The Real Estate Language Is Tough To Comprehend

Like legalese and tax papers, real estate is riddled with jargon buying a home without a realtor is inherently confusing to outsiders.

Sure, you can use Google to look up the meaning of a complicated real estate phrase or acronym, but do you really want to trust Google with one of the most important investments you’ll ever make or risk legally committing yourself to something you don’t completely understand?

Small mistakes can have significant implications in real estate, so it’s usually preferable to have an expert on your side.

You Run The Risk Of Failing To Ask The Appropriate Questions

Before a contract closes, many questions should be answered, including big ones south carolina state university college board who pays what at closing and whether seller disclosures need to be made public.

If you’re working alone, you’re taking a big chance by expecting that you’ll get answers to all of your critical inquiries, even if you don’t know what to ask.

Working with someone who knows exactly what those aspects are and can not only ensure that the questions are asked but also that the answers come out in your favor is the only way to ensure that all of your bases are covered.

Risk Of Improper Inspection

When you go to the home for an inspection, you’ll always be obligated to bring an agent with you, and that person will always be a realtor in addition to the inspector who will examine the property.

You can ask the seller’s agent to accompany you, but this may cause issues with your own negotiating position and how the commission is split.

It’s allen edmonds boulder sale to have an agent with you during the inspection who is solely focused on representing your interests, which is usually a buyer’s agent rather than a seller’s representative.

You’re Not Getting The Full Picture Of What’s Available

The internet has made it easier than ever to view what’s available in terms of homes for sale. Still, if you buy a property without the help of a realtor, you’ll be losing out on a lot of properties that aren’t advertised through regular channels.

Real estate brokers have access to a wide range of available homes, including some that are currently available but aren’t listed on any of the online marketplaces. Furthermore, you may be overlooking other homes that meet your criteria but aren’t shown in your search keywords, such as a reasonably priced property in a nearby town with the same school district.

Working with someone who has their buying a home without a realtor on the pulse of all the data is your best chance if you want to cast as wide a net as possible in your quest.

Conclusion

Is it possible to buy a home without using a realtor? The response isn’t as straightforward as the question suggests. While failing to hire a real estate agent puts the ball in your court and gives you the chance to save money, the consequences aren’t always as straightforward as many would want. To this question, there is only one conclusive answer: maybe.

True, you won’t have to pay for their services, but you’ll also be missing out on some considerable benefits. Their skill and knowledge of a specific region could buying a home without a realtor you a significant amount of time and money – far more than what you would pay them in commission. So, before you consider buying a house without a Realtor, assess the pros and cons.

Ricardo is a freelance writer specialized in politics. He is with foreignpolicyi.org from the beginning and helps it grow. Email: richardorland4[at]gmai.com

Источник: https://foreignpolicyi.org/purchasing-house-without-real-estate-agent/

Your car has a blown engine, and needs a new one. Can you replace it on your own?

Of course you can. But that doesn’t mean that you should.

If you’re an experienced auto mechanic, it might make sense to do the work yourself. But if you’re just a weekend tinkerer, or if you don’t know the difference between a Chevy and a Tesla, it’s probably best to rely on an expert to do the work. Otherwise, the damage you could do might end up costing a lot more to repair than you’d be saving in labor costs.

Here’s the lesson, and you undoubtedly know what we’re going to say next: of course you can buy a house without a realtor, but that doesn’t mean that you should.Compare mortgage offers and save money. Get Started.

Home sales are complicated. And real estate agents (or realtors, who are simply agents who belong to a specific industry group) have knowledge, contacts and experience that most of us don’t. After all, helping people buy or sell houses is what they do every day.

They know the market and its pricing trends, they’re experienced in negotiation and the required paperwork, they’re familiar with the best outside professionals (inspectors and title companies, for example), and they often have inside knowledge about houses that are about to hit the market or aren’t listed on MLS. Many times, they know the seller’s agent personally and can find out if the listing price is realistic, or exactly what it will take to get a deal done.

Here’s what may be the most important reason for using a good real estate agent. The buyer usually doesn’t pay for their real estate agent; the seller does. In other words, using a realtor or buyer’s agent doesn’t cost you anything, but pays huge dividends – especially if you’re a first-time home buyer who’s completely new to the home buying process.

Even so, some people want to do it themselves. Here’s a look at when that may make sense, and a step-by-step guide to buying a house without a realtor.

When You May Want To Go It Alone

There are a few cases when home buying without a real estate agent could make sense.

  • You’re a realtor or former realtor, or have a close friend or relative who is a realtor.
  • You’re buying the house from a friend or relative who you completely trust.
  • You’ve bought lots of homes or other properties, and know exactly what to do and how to do it.
  • The seller doesn’t want to pay your agent’s commission – and neither do you. This happens most commonly when the house is a FSBO (For Sale By Owner), because the seller isn’t paying a listing agent commission for his side of the sale either. (Caution: some FSBOs don’t use realtors because the seller doesn’t want to disclose a serious problem with the house to an agent, who would then have to disclose it to prospective home buyers. Proceed at your own risk.)

In that last case, the many advantages of using a real estate agent buying a home without a realtor make it worth your while to swallow hard and pay a buyer’s agent on your own. But if you’re still determined to buy a house without a realtor, here are the steps to take. If you're looking for a comprehensive checklist for buying a house, you can find it here.)

How To Buy a House Without a Realtor

Before anything else, you should narrow down the list of communities or neighborhoods in which you’d like to live, do a complete budget to figure out your how much house you can afford, check your credit score to get a good idea if you’ll qualify for a mortgage, and do some general research on home prices in your target area (Zillow, MLS or other real estate websites are fine for that). Armed with that initial information, you can move forward.

  1. Get a Mortgage Pre-Approval: This not only saves time during the mortgage approval process, but shows the seller and her agent that you’re a serious and qualified buyer. It also confirms how much you can afford to spend on a house, because you’ll know approximately how large a mortgage loan you can obtain and what interest rate you can expect to pay.

  2. Hire a Real Estate Attorney: In some states you’re not required to use a lawyer when you buy a home. It’s highly advisable, though, if you don’t have an experienced realtor who can review the mountains of paperwork required for a real estate purchase. A small legal mistake can cost you dearly. Fortunately, real estate lawyers aren’t usually as expensive as you’d think, since you only need their services a few times during the process.

  3. Find Your Dream House: As you house hunt, you’ll be dealing directly with sellers or their agents. Remember that neither is your “friend,” even if you have a lengthy, pleasant  discussion with them at an open house. You’ll be advocating for yourself, so the more research you’ve done on the neighborhood, homes in the area and real estate in general, the better.

  4. Get the Seller Disclosures: By law, home sellers have to disclose structural and safety issues with a house to potential buyers. Since you’re acting as your own agent, it’s up to you to obtain that disclosure. (Disclosure laws vary by states – you should research the specific laws in your own state before going any further. At the very least, most states require lead paint disclosures, and require that the owners give truthful answers if asked direct questions.)

    Home sellers generally have to disclose issues like the use of lead paint, asbestos and radon in the home, damage done from insect infestations, water and mold, and major defects in the foundation, heating and plumbing systems.

    This is also a good time to ask questions about other structural or safety concerns you may have, and to find out how recently important items like the roof and furnace were replaced. You can also clarify at this time which fixtures or appliances will be staying with the home, and which might be available for inclusion in the sale or purchase.

  5. Research Comparable Sales and the Market: Before making a formal offer, it’s important to know how realistic the asking price is, and whether the market is a hot or cold one. That information, particularly data on recent selling prices for comparable properties in the area, and how great the competition might be for the home, are key guides to whether the house is worth its proposed sale price or how much you should offer.

  6. Make an Offer and Negotiate: Offers are made on formal real estate documents, as are all counter-offers during the negotiation process. This is one of the times when having a lawyer will be extremely important, since these are binding legal documents. When submitting an offer, you’ll have to include a check for earnest money; the amount depends on customary practice in your area.

    Offers and counteroffers should include more than just the purchase price you’re proposing. They should include contingency clauses involving closing date, inspection periods and other conditions that must be met before closing. They should also include any requested financial concessions such as cash toward closing, as well as a list of all fixtures and appliances which will be included in the sale. Each offer and counteroffer should state a firm deadline for response.

  7. Formally Apply for a Mortgage: The approval process can take weeks, so don’t delay. Stay in touch with the mortgage lender throughout, so you’re not surprised with bad news just before closing. Be sure to receive a final rundown of all closing costs before the actual closing date.

  8. Find a Title Company: You’ll need to protect yourself by having a title search done and obtaining title insurance. A buyer’s agent usually recommends a title company, but since you’re on your own, ask your lawyer (if you have one) or do some research. Don’t ask the seller’s agent, though, just to be safe.

  9. Get a Home Inspector: The same goes with finding a good home inspector, who will spend several hours going through the house from top to bottom to find any problems and will deliver a complete written report. If the home inspection doesn’t include pest and termite inspection, hire a separate company for that.

  10. Renegotiate (if necessary) and Sign Off on Contingencies: It would be terrific if the home inspector finds no problems whatsoever. That almost never happens, though. Before you formally remove the home inspection contingency from your contract, it’s time for another talk with the home seller or their agent to ask for repairs, price reductions or allowances in order to remediate any issues. Once you’ve buying a home without a realtor to terms on the bottom line numbers and everything’s agreed to, you can remove the contingencies and get ready for closing.

  11. Closing: Do a final walk-through the day of the closing, to make sure everything’s ready for you to take possession. At the closing you’ll have to have your ID, a cashier’s check (or proof of wire payment) for the down payment and closing costs – and if you have one, your lawyer should be with you to go through the piles of documents and make sure everything’s in order.

Congrats – you’ve bought your new home.

There are three common thoughts that people have after buying a house without a realtor:

  • “I’m never doing that again!”
  • “That wasn’t as hard as I thought!”
  • “Maybe I should look into getting my real estate license!”

Hopefully you’re in the second or third group, meaning your home purchase went through smoothly.

Источник: https://resources.ownup.com/buying-a-house-without-a-realtor

Buying a house without an agent through private sale

When Becky Irvine Stone decided to sell her investment property back in 2011, she was concerned by the $10,000 fee quoted by a prospective real estate agent.

In a very Carrie Bradshaw-esque way, the mum-of-three couldn't help but wonder: what if she sold the joint herself and saved the cash?

People tend to use real estate agents because they can make it easier to meet the legal requirements of selling a home as well as preparing the property for sale, listing it, marketing it, running viewings, dealing with prospective buyers and the actual sale bit.

But "in the same way you're entitled to sell your sofa yourself, you're entitled to sell your house yourself", says Dr Cathy Sherry, an associate professor at UNSW who teaches property law.

There's no legal requirement that you have to use a real estate agent to buy or sell, she adds.

A bit of online research later and Becky decided she didn't mind putting in the work if it meant ending up with more money.

But is it that simple?

What have you done yourself to save money? If you have a story or experiences you'd like to share, send an email to [email protected]

Hosting viewings yourself

Becky signed up for a website for private home sales, created her listing and put the big sign the company posted her in front of her house.

For good measure, she also paid $2 to place an advert in the local school newsletter.

It was enough to drum up some potential buyers.

About three Saturdays in a row, Becky took five to 10 people a day through for viewings.

She channelled the energy of real estate agents she'd observed on walkthroughs to turn her house into a place others could imagine themselves living in.

On the last Saturday, she got an offer on the spot.

Becky then spent about $600 engaging a conveyancing company to help with the nitty-gritty of transferring the title to the buyer.

"The whole thing ended up costing us maybe $4,000 to sell. We saved about $10,000 by doing it," she says.

But Timothy McKibbin, chief executive of the Real Estate Institute of New South Wales, says he wouldn't necessarily think about it that way.

"Initially [selling privately] looks very attractive … You say to yourself, 'I'm going to have to pay the agent so many thousands of dollars and that doesn't look very attractive', but what if the agent gets you an extra $100,000 as opposed to what you could do yourself?"

Despite the possibility of more money, Becky says she'd sell privately again if she ever does.

And when she needed to buy a new family home in 2017, she ended up going down the private road for that too — but not in the way she anticipated.

Hidden costs of buying a home

Illustration of real estate agent, building inspector, solicitor with shaded-out home buyers in the background.

If you're looking to buy a house, here's a quick who's who of the people you'll meet (and pay) and what they actually do.

Read more

Finding the perfect family home by chance

Because of her positive experience selling privately, Becky started her search on the website she'd sold her house on back in 2011, but struggled to find any that looked like a fit.

Time was running out, so she reached out to "all the agents" in her area in the hope they'd be able to find her somewhere, fast.

"But we just couldn't find anything. Either we'd find something we really liked and we'd miss it, or something was not quite right," Becky says.

Eventually, she heard a couple in the neighbourhood she was looking to buy in were thinking of selling and would soon be listing their place.

When she went to check out the exterior, the owner of the house came out and invited her in.

"We got on like a house on fire and the place was perfect. We ended up negotiating and she sold it to us for less than what she would have [put it on the market for] because she didn't have to pay the [agent]," Becky says.

A man stands behind a woman as they rest against a fence with a Queenslander house behind them.

Mr McKibbin says people tend to buy privately because, like Becky, they're either looking for a particular property, or because they believe they'll be able to buy a place for less if fewer people are competing for it.

But Antonia Mercorella, chief executive of the Real Estate Institute of Queensland, says this isn't a guarantee. "It can be difficult [for vendors selling their own homes] to remain emotionally detached," she says.

"[This means] they may have unrealistic expectations of the price, so they might be wanting under market value or be selling it for more than it's worth."

Becky was happy with the amount she negotiated.

She hired a conveyancing company again for help getting the legal documents sorted, which she says set her back about $300, and the family was soon download pnc bank mobile app in their new home.

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Want to buy privately? Here are some tips

Chance is just one way to find houses up for private sale — if you trawl through listings in local newspapers or on social media including community groups, you might find some, Dr Sherry suggests.

You could even try asking people you know or walking through neighbourhoods you like.

"There's no law against dropping notes in the mailboxes of houses you like and saying, 'If you're interested, give me a ring,'" Dr Sherry adds.

Why buying in the country is harder than ever

Jarred Holt with his wife and two children, for a story about housing in Castlemaine.

Jarred Holt moved to Castlemaine hoping to buy a home. With prices skyrocketing, he's had to put his plan on hold.

Read more

If you do find a place you'd like to buy, she advises keeping your feelings about the seller out of it.

"Don't, as a buyer, think, 'Oh, look, I met this person, they're really nice, I trust them, we got along really really well.' None of those things matter in commercial transactions."

Mr McKibbin says you should also expect to do more work finding out background information about the property you're looking at before signing any contracts than you would if you went through an agency.

"There are obligations on agents to disclose information that a DIY [seller] doesn't have to," he says.

"If there's been a violent crime or anything else that's a latent defect in the property, a vendor doesn't have to disclose, but a real estate agent does."

When the time comes to send the deposit over, Dr Sherry cautions the way they can be held for private purchases comes with a "very real risk".

If you've signed all the contracts but settlement doesn't happen and you've already paid your deposit to the seller, they're legally obliged to give it back to you, she says.

"But they [might not] have the money anymore. You might eventually get it back, but after heartache and litigation," Dr Sherry explains.

The experts stress there are legal requirements around selling and buying properties under all of the states and territories' conveyancing legislation.

This is why they each advise meeting those requirements by consulting with a conveyancer, as Becky did.

"When it comes to property, it's generally the largest asset any of us buy in our lifetime," Ms Mercorella says.

If you decide to take on the burden real estate agents are paid to, it's doable — but not without risks you'd be less likely to face when working with an agent.

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Источник: https://www.abc.net.au/everyday/buying-house-without-agent-through-private-sale/100343472

Most of the time, home buyers opt to use a Realtor to help guide them through one of life’s largest financial transactions. A real estate agent’s job is to match you with a home that fits your budget and lifestyle needs, and help you navigate making an offer, negotiating, getting the home inspection, and closing on your new place.

Some buyers hesitate to use a Realtor because they don’t want to be saddled with Realtor fees. Typically, though, buyers don’t pay the commission; sellers do. The commission is 5% to 6% of the home’s purchase price and is split between the listing agent and buyer’s agent. Oftentimes, sellers build this fee into the price, which means you might pay more for the house.

Do you need a Realtor to buy a house? No. Still, going it alone can be risky. Before making your decision, consider the pros and cons of buying a house without a Realtor.

Real estate agents are professionals who advocate for your interests. In most cases, sellers have an agent working for them so you want someone on your side who has your back in negotiations and can help you understand the complex lingo in contracts, for example.

Laurie Blank, a licensed Realtor with Edina Realty in Minneapolis, says that unless you’ve been through the process of buying property before, it’s a better idea to go with a Realtor than not.

“There are too many legal loopholes and fancy terms that can get overwhelming and confusing for someone who’s not well-versed in the real estate business,” Blank says. “It seems too risky, considering real estate agents are there on a daily basis to help people make decisions, using their experience and continuing-education requirements.”

Here’s what you’ll have to do yourself if you buy a house without a Realtor:

  • Find homes that match your budget and needs. Property search sites give you a sampling of what’s available, but you’ll have to research whether asking prices are justified based on comparable home sales in the area.

  • Dig up facts on a neighborhood, including ones that a seller might not disclose that could be important to you.

  • Negotiate an offer, including the price and other clauses and contingencies in the purchase agreement.

  • Navigate the home inspection, and negotiate repairs or credits with the seller.

  • Decipher paperwork that could be filled with complex jargon and terms you don’t understand.

  • Request and review seller disclosures. You have to research what to ask for or what sellers in your state are required to disclose.

A Realtor evaluates prices of homes on the market and those sold in recent months — comparable sales (or “comps” in real estate speak) — to determine whether a seller’s asking price is in line with market data. Otherwise, you could end up overpaying for a home.

You also could wind up with a home that has serious issues, requiring repairs without help from the seller because you didn’t have an inspection contingency in place or, worse yet, skipped the inspection altogether.

“I’ve heard stories where buyers worked out terms for a contract and found multiple, serious problems after they moved into the home,” Blank says. She adds that legal jargon in the contract left those buyers with no recourse to get their money back or require the seller to pay for repairs.

Mark B. Huntley, a former real estate lawyer who now runs a personal-finance blog in San Diego, says he worked with a buyer who purchased a home without an agent and relied on his own inspection to justify why he wanted to forgo contingencies. That didn’t end well for the buyer, Huntley says.

“Turns out, the house was riddled with termites, and the buyer had no legal way to get out of the contract, so he lost his $5,000 deposit,” Huntley says.

Buying a home without a real estate agent might make sense if you have a strong handle on how the process works and confidence in your ability to navigate the deal on your own. Here are some common reasons for buying a house without a Realtor:

  • You’re purchasing a home from a trusted friend or family member.

  • You have a specific home you want to buy and have a good idea of its value.

  • You’ve hired an experienced real estate attorney to walk you through the paperwork and offer advice.

  • You’ve purchased multiple properties and understand the process.

  • The seller isn’t willing to pay the commission for a buyer’s agent, and you don’t want to pay it, either.

Buying a house involves a lot of moving parts, so you’ll want to ensure that you have all the details down. Using a Realtor can save you time and possible headaches down the road. If you do decide to buy without a Realtor, consider hiring a real estate lawyer to review the offer and purchase agreement.

    SL

    Sarah Li Cain, Bankrate.com

Источник: https://www.inquirer.com/real-estate/housing/pros-cons-of-buying-house-without-realtor-20190817.html

People in California who want to buy a home without using a real estate agent can now do exactly that, thanks to Redfin.

The online real estate brokerage, which has been growing its mortgage and direct homebuying operations over the last several years, also now offers a program that allows homebuyers to buy a Redfin-listed home without utilizing a buyer’s agent.

And now, that program will be available to homebuyers in California.

Redfin announced earlier this week that it is expanding its agent-free homebuying program to “most” of its California markets, including Fresno, Inland Empire, Los Angeles, Orange County, Palm Springs, Sacramento, San Diego, and Santa Barbara.

Through the program, which the company calls “Redfin Direct,” buyers can visit and buy Redfin-listed homes without needing to contact or use a buyer’s real estate agent.

According to the company, this allows buyers to “make their offer more competitive by saving the seller from paying thousands in commissions to a buyer’s agent.”

But the program isn’t totally free of real estate agents. In fact, the program is only available on homes that are either listed by Redfin agents or owned by Redfin itself.

For Redfin-listed homes, buyers can schedule a home tour with a Redfin agent with a few clicks through the company’s “Book It Now” feature.

For homes that Redfin owns through its iBuying program, buyers can use “Direct Access,” which allows them unlock the door with their phone and tour properties on their own schedule, without an agent.

Then, when a buyer is ready to make an offer on either a Redfin-listed or Redfin-owned home, Redfin Direct offers tools that help guide the buyer through the process, including laying out the elements of the contract and providing information on typical Redfin seller preferences so the buyer can make their offer stronger.

“Redfin Direct is a new way to buy a home for people who are confident making an offer without an agent,” said Mark Bennett, Redfin’s state broker in California.

“In a multiple offer situation, helping the seller avoid paying a buyer agent commission is one way to make your offer stand out,” Bennett added. “For the buyers who are comfortable being unrepresented, we are making it easy to make an offer online. This is just one more way Redfin is redefining real estate and helping our customers save money.”

Redfin already offers lower than traditional commissions for homes it lists in California. The company’s commission rate varies from 1% to 1.5%, depending on the market in California.

According to the company, on a median-priced home of $650,000 in Los Angeles, a seller could save up to $26,000 by listing with a Redfin agent and selling to a Redfin Direct buyer when compared to paying the traditional 6% in commission fees.

Redfin Direct is also available to buyers in larger markets in Massachusetts, Northern Virginia, and Texas, and the company plans to expand the program to additional markets in the future.

[Update: This article is updated to reflect that sellers pay the commission on real estate deals, not buyers.]

Источник: https://www.housingwire.com/articles/redfin-will-now-let-people-buy-a-house-in-california-without-a-real-estate-agent/
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Источник: https://www.quickenloans.com/learn/should-you-buy-a-home-without-a-real-estate-agent