It’s a smart idea to get a real estate agent if you are looking to purchase a house.

A home can be purchased without the help of a realty agent. However, it all depends on your personal situation and knowledge of the realty industry.

Most homebuyers use a qualified agent. According to a survey by the National Association of Realtors, 86% of respondents purchased their homes through a broker or real estate agent.

Real estate agents are sometimes referred to by the names Realtors or brokers. Although there are some differences, they all can assist you in the purchase of your home. These terms will be used interchangeably throughout this article.

Let’s look at the pros and cons to using a realtor and the steps you will have to take if you don’t hire one.

What are your risks?

You will most likely need to hire a real estate agent. This process is very difficult to navigate on your own. Working with an agent is usually free for the seller, as they typically pay the commission.

Here are other reasons you should consider working with an agent.

  • Market intelligence A real estate agent might know about a new neighborhood or development that you haven’t been to before. Agents spend their time in real estate trenches so they can have the most up-to-date information on the market. This is crucial to find the right home at the right price.
  • Listing access You can view real estate listings online and sometimes the local MLS (multiple listing system), but you won’t be able to access as many details about properties as real-estate agents. Real estate agents might also learn about “pocket listing” properties that are not listed on the MLS. It can make the difference between landing a property on a hot market and missing out.
  • Professional advice Realtors can offer suggestions for details that you might not have thought of.
  • Time-saving Buying your home can be stressful. The process can be time-consuming and complicated, as well as complex because of the many paperwork involved. Your agent can be a great resource if you are a first-time buyer. They can help you plan for closing, assist you with financing, and arrange a home inspection.
  • Professional connections Home buying requires many specialists. This includes home inspectors, lenders and mortgage brokers (if you are applying for a loan). The network of contacts that a real estate agent has can help you find the right partners to help you navigate the process.

Can I buy a house without a realtor?

You shouldn’t in most cases. However, there are situations where an agent might be beneficial.

  • Save on the purchase price — A seller does not need to pay an agent a commission. This is generally 2.5% to 3.3% of the purchase price. The seller may pass this discount on to you, which will reduce the home’s cost.
  • Industry expert If you are an experienced investor in real estate or an agent, you might want to skip hiring an agency.
  • Family property You may want to make the process easier if you have already agreed on a price.
  • New construction According the National Association of Realtors Report, 7% of buyers bought their home directly from a builder/builder’s agent.

How to purchase a house without the help of a real estate agent

Here’s an overview of what you can expect if you are determined to buy a house without the help of a real estate agent.

  • Your budget and your wish list are important. Based on your local market knowledge, determine what you can reasonably expect within your budget.
  • Secure Mortgage preapproval HTML3_ If you are not paying in cash, request a conditional letter from your lender indicating the amount of the loan that you might be eligible for.
  • View listings, schedule showings, and view homes. Consider the comparables (or similar prices) for properties that have sold in your area before you make an offer.
  • Request a Seller’s Disclosure . This document will help you determine if there are any problems with the house, such as mold.
  • Make an offer . Do not forget contingencies. These are situations where you could back out or revise your price. You might write a letter to the seller if the property is in high demand. The seller’s agent or seller may need to negotiate the price, or you might be denied.
  • Hire a qualified inspector to inspect your home and determine the final price.
  • Close the loan and finalize the transaction. Schedule the closing and choose closing service providers like title insurance. The final walkthrough should be done a few days before closing.

What’s next?

A real estate agent is your best option in most cases. These questions are important to ask if you doubt that you can work with a real estate agent.

  • What type of home do I really want?
  • Do I have a good understanding of the local market?
  • Can I handle this without the help of a realty agent?
  • Are I an experienced, skilled negotiator
  • Are you able to reduce the cost of buying a home?
  • Do I want to buy the house from a friend?
  • Are I an experienced real-estate agent or investor?
  • Do you plan to purchase a property under construction from a builder