• Register
settingsLogin | Registersettings
Show Menu

how to make an offer on a house without a realtor?

0 votes
67 views
How to make an offer on a house with no Realtor?.
Hi, I'm looking at the houses in 400-450k range and know what i want. Don't feel like paying 10 000 to someone to help me make offers and give advice I don't need.I want to get at least some money from real estate commissions to pay closing cost.  Can I just draw offer with Real estate attorney help and put my terms about getting let say 2% commission back, letting selling agent have his 4% or 3%.

Searches related to how to make an offer on a house without a realtor
how to make an offer on a house for sale by owner
buying a house without a realtor checklist
buying a for sale by owner home without a realtor
how to buy a house without a realtor or attorney
cost of real estate attorney
buying a house for sale by owner with a realtor
buying land without realtor
closing without a realtor
asked Feb 25, 2017 in Business and Finance by psihiart

6 Answers

0 votes
Make an offer with an agent who isn't a member of the National Association of Realtors.  The term Realtor describes a member and agents don't need to belong to the Association.
And who says the Seller won;t discount the price by 3-4%? You'll never know if you're working with their representative.
answered Feb 25, 2017 by John Stewart
0 votes
Go ahead and do what you want to do.  A good understanding of the system will help you, but you seem to know what you are doing so I say, go and do your search, make the appointments, search for the comps,  write the offer, negotiate, monitor the process, organize the loan and the closing, there isn't much to it.  By the way, the fact that you will not be using a buyer agent representing your interests does not guarantee you that the seller will give you a discount. Commissions are set with the agency and oftentimes they are non-adjustable., which means that the seller will pay the full commission to the listing agent that represents the property. Give it a try on your own though, and see what happens.  I wish you good luck!
answered Feb 25, 2017 by Ofe Polack
0 votes
Certainly you can make a proposal to the listing agent that you would like to be represented by an attorney, and ask if your idea would be acceptable. From the replies by the agents here, you can see that they take pride in the value that they provide the buyer.  A great agent will know the market very well, and won't let you overpay.  Knowledge of the best home inspectors, so deferred maintenance doesn't go undetected, and positive working relationship with the listing agent can go a long way toward getting you the very best value, and making sure you don't lose out on a great home.  They can help show you properties that meet your needs that you might not have seen on your internet searches, and will often have previewed them, saving your time.  As a broker, I could certainly represent myself in a transaction, but would not do so.  The listing firm has a contractual right to the total fee, which could mean that the half of the fee that was earmarked for the selling agent, your agent, will simply all go to the listing side of the sale.
answered Feb 25, 2017 by Janet Burchfield
0 votes
In addition to all answers. Even with an agent you can make an offer that you need credit for closing cost and most mortgage company will allow you up to 3% of purchase price.
Of course you can do the leg work yourself and have a lawyer handle the purchase documentation for you. But a good agent is not only one who finds the right property and negotiates but they also serve as a mediator. Buying a property can be stressful and emotional and it is always a good idea to have a qualified agent to act as your go between.  One of the functions of the listing agent is to get the highest price for the seller... not less, and Buyer agent is fighting for your best price. Negotiating process can be very dynamic and in this coming up market its more happening multiply offer situation where you really would like to have an agent working for you.
The lawyer likely won't continue to check on progress and keep you updated and make calls, remind you of deadlines, etc, they most likely will do the paperwork and then show up at closing.
answered Feb 25, 2017 by Maja Brajic
0 votes
As previously stated, the listing commission is between the listing Brokerage and the seller.  The listing Broker then agrees with the MLS service to provide a percentage of this to the buyers agent/office.

As a buyer, the commission is paid by the seller...not by you, so as you may feel you are paying it, the seller has already calculated this fee and is aware of his costs.

 When you choose an agent to help you, interview several in order to find someone who will truly do this.  A Realtor can help you with solid negotiations (as your agent and not a dual agent) between the other agent and yourself...from closing costs credits to repairs needed, there are always unforeseen issues with every sale.

Just get involved with a professional that is ONLY representing you...and not both sides. When its all over, I am certain you will be pleased that you had a professional in your corner.
answered Feb 25, 2017 by Scott Cary
0 votes
How can you make an offer on a house without an Agent?
What if I want to offer below asking? Is there a form I can download online? I live in Los Angeles, CA and appreciate the insight.
answered Feb 25, 2017 by Lj
I just purchased my first house without an agent after going through an extensive, offer-counter-offer-negotiation period with the seller and the seller's agent. It is definitely doable, especially with all the great resources online for finding homes and learning about the real estate transaction process, however, I must say that it is not for everyone.

I have a finance background and am a transactions attorney so the process was relatively easy for me. As far as legal documents go, the documents used in a typical residential sales transaction are extremely simplistic and easy to use. Running a CMA is very easy to do as well if you know where to look online. And of course, no one will advocate for your rights as much as you, yourself would.

Ultimately, both buyer and seller's agent want to get paid. That is the bottom line. The higher the price you pay for your house, the more both agents get. So your agent, in a sense, will have an inherent conflict of interests to start with. However, I do think an agent is useful to guide you through the process, though I would have to agree that 3% is too much.

If you are using an agent I would suggest using one that will give you back half or more of the 3%, especially in this market.

And as pointed out, no one works for free. We were able to work a deal with the seller's agent where we reduced the purchase price by 3% because we were not using a real estate agent.

Ultimately, buying a house by yourself, like almost anything else, is doable on your own. However it will take a lot of time and effort and you will have to do a lot of research to make sure you understand the ins and outs of a real estate transaction. Good luck whatever you choose.
Let me say up front that I'll not bore you with a longwinded explanation why I think you should not buy a house without a real estate agent representing you.

If the house you want to buy is listed with an real estate brokerage, buying without representation is not common as the listing agent and the seller have an agreement for commission and the total commission is due to the listing agent whether or not the buyer is represented. So if I were the seller, I would want the buyer to be represented because that's what was the intent when the seller and listing agent negotiated the total commission (usually half is earmarked for the buyer's agent).

So now you come and you want to make an offer below asking price and your rationale is that you want to offer less because you don't need or want an agent to represent you. To the seller it means that he proably will end up with the same amount of money, but he is dealing with an unrepresented buyer, which could mean trouble during the escrow. I don't mean any offense to you, but the common perception is that unrepresented buyers are more difficult than represented buyers. I am not taking a position on whether that's true or not.
For the listing agent, an unrepresented buyer also often means that the listing agent ends up doing double work, but gets only paid half of the commission if he agrees to renegotiate the commission with the seller in light of the offer from an unrepresented buyer.

It's not so much a matter what form you use to write up the offer. IT's a matter of convincing the listing agent that it's in the client's best interest that he reduce his commission so that the seller can accept a below asking price offer from an unrepresented buyer. I have no words of wisdom for you there as I don't know you and therefore don't know if it's a good or bad idea for the seller and listing agent to entertain such a proposal.

If you can convince everybody that it's in the seller's best interest to deal with you directly, then the listing agent can provide you with the necessary form and he'll most likely will require you to sign a form that acknowledges that he does not represent you.

If the house is not listed by a brokerage, you can buy one of the self-help books or you can also call a title and escrow company and they maybe able to assist you with the paperwork. I honestly, don't know exactly how it's done when there are no agents involved, but I think a title company would be able to at least point you in the right direction as they must have run into this kind of a situation before. Good luck to you.
Guest, with your attitude, any homebuying negotiation you entered into would probably go better if you didn't deal directly with a homeowner. Most people hire agents because they don't want to deal directly with the other side. When there is a lot of money involved an arms length transaction is generally the way to go. People's personalities tend to clash. My first home I bought FSBO, I vowed never to do it again. It takes a lot of time and effort to sell a house, there are a lot of things people could try do for themselves but don't because they acknowledge that they don't know as much as a professional does, and their time is better spent doing what they know how to do, and letting someone else do what THEY know how to do. I could do my taxes myself, but I find it tedious and time consuming, and there are many deductions I don't know about. I would rather let a professional handle it, even if---God forbid!--- I have to pay them.

Related questions

0 votes
3
answers
52 views
0 votes
6
answers
54 views
54 views asked Feb 25, 2017 in Business and Finance by jedlindsey
0 votes
3
answers
135 views
0 votes
0
answers
38 views
38 views asked Feb 25, 2017 in Business and Finance by Diane Tuman
0 votes
5
answers
101 views
101 views asked Feb 25, 2017 in Business and Finance by MeredithR
Welcome to Koees Questions and Answers, where you can ask questions and receive answers from other members of the community.
...