UPDATED: Feb 20, 2024
So you’re in the market for a new abode? Exciting times! Finding your first or next home is one of the most thrilling, fun, and sometimes scary, endeavors you can undertake. Envisioning yourself and your loved ones in a new space, perusing available houses online, and touring candidates in person can be a blast.
There’s another side to this search though, that's, well, not all fun and games. Successfully purchasing real estate can be a winding road filled with possible pitfalls and speed bumps that a competent and experienced REALTOR® can help you navigate through. But, you may be wondering, do you need a REALTOR® to buy a house?
Can you buy a house without a REALTOR®? Yes. Should you buy a house without a REALTOR®? Probably not. You’re not legally required to use a REALTOR® or real estate agent to buy a house. Working with a REALTOR® will depend on your preferences and needs. However, many home buyers find it helpful to work with a REALTOR® due to their market expertise, negotiation skills and knowledge of the home buying process.
What’s the difference between a REALTOR® and a real estate agent, you ask? A real estate agent is a licensed professional who is able to help people buy and sell real estate. REALTORS® are real estate professionals who are members of the National Association of REALTORS® (NAR) which means that they subscribe to the NAR codes of ethics and standards. The ethical guidelines and best practices encourage REALTORS® to always keep their clients’ best interests in mind.
You may already be getting the sense that using a REALTOR® during your home buying process can be beneficial. That said, it’s important to look at the pros and cons of any decision before diving in.
There are a lot of steps to buying a home, and a REALTOR® can help navigate each of them. That said, if you’re going it alone, here’s how to get yourself to the closing table.
Hopefully you feel a little more informed about buying a house without a REALTOR® or real estate agent after reading this far. However, some questions may remain. Let’s take a look at some frequently asked questions about buying a house by yourself.
In rare cases, buying a house without a REALTOR might save you some money or help get you the house you want. If the seller is a FSBO, they may not want to pay a buyer’s agent commission on the sale. Since you don’t have a REALTOR®, they won’t have to. This might make them more agreeable to a lower sales price. In some cases, a FSBO might not be willing to work with a buyer’s agent no matter what. Doing the transaction on your own might be a necessity to make an offer on that particular house.
As mentioned above, it can be done with a FSBO. In addition, it sometimes can with a property that is listed for sale with a REALTOR® under the same principle. If you don’t have a buyer’s agent, the seller may reduce the sales price, because they are saving money by not paying an agent to represent you. Keep in mind though, a good REALTOR® will negotiate a sale that usually saves you much more money than their commissions cost you or the seller.
If you're working with a REALTOR® or agent and the seller isn't represented, your agent will typically handle communication directly with the seller or their representative, facilitating the transaction on your behalf. However, it's important to ensure all agreements and negotiations are clearly documented and understood by both parties.
No, but it’s usually a good idea. A REALTOR® can make sure everyone knows the mechanics of the transaction and can keep things running smoothly. They can also be a good buffer between you and your family member or friend when it comes to making sure negotiations don't get “personal.”
In almost all cases, the seller pays both real estate agents that take part in a transaction. They sign a contract with their listing agent defining how much they will pay them as well as how much they will offer to a buyer’s agent that brings them a purchaser for their home.
The benefits of working with a REALTOR® are plentiful, as outlined in this article. However, you aren't required to use one if you don’t want to. Do your research, ask your friends/family who have bought homes, and decide if buying a home with or without a REALTOR® is the right decision for you. Already decided you want to get started with a REALTOR®? A good next step is to connect with an expert agent today and start your home buying journey with confidence.
Home Buying - 5-Minute Read
Jamie Johnson - Feb 5, 2024
Dual agency means a real estate agent is working for both the buyer and the seller of a property. Discover the pros and cons of a dual agency situation.
Home Buying - 3-Minute Read
Miranda Crace - Nov 8, 2022
It's important to maintain a relationship with your real estate agent even after you close. Find out why staying in contact with your agent is beneficial.
Home Buying - 9-Minute Read
Melissa Brock - May 23, 2024
When buying or selling a home, working with a trusted real estate professional is a game changer. Learn how to find the right agent for your needs.