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Buying a Home Without a Realtor

A big question for home buyers is, "Should I consider buying a home without a Realtor?" This is particularly important with "for sale by owner - fsbo" properties you might encounter as well as when you buy a home that is listed by a Realtor and you aren't represented by your own agent.

The real question is do you have enough knowledge, experience and skill to "go it alone"?

For example, here is a "partial" list of factors to consider when negotiating a contract. If you are considering buying a home without a Realtor, you need to understand the complexities of the home buying process. Developing a successful negotiating strategy is but one part of the entire home buying process. Review this list as well as the home buying checklists in the section, Home Buying Tips. Then decide whether or not buying a home without a Realtor is really for you.

Factors to Consider When Developing a Negotiating Strategy:

What price should you offer?

What other terms should you consider?

What closing date?

What contingencies?

Subject to attorneys approval?
Subject to financing?
Subject to bank appraisal being equal to or greater than purchase price?
Subject to home inspections?
What inspections?

Should you ask the seller to make certain repairs, ask for a repair credit, or offer a lower price and handle repairs yourself?

What did the seller pay for the property?

How is that relevant in determining an asking price?

What improvements has the seller done since they have owned the property.

What is the value of these?
How does that figure into the negotiating process?

What are other homes similar to this one selling for in the area?

What adjustments should be made for comparable sale properties that are different than the one you are buying?

What is this home really worth?

What defects or potential defects are there in the home?

What deferred maintenance is there?

How is the neighborhood?

Crime?
Noise?
Smells?
Ease of access?

What about low-balling?

What price should you start out at?
If the seller senses that you are in fact low-balling, they won’t take your offer serious and in fact may not counter it at all. They also may be so put off by your actions that they won’t even consider a reasonable offer from you later.

What are your strengths?

Pre-approved for a mortgage?
Able to close quickly or able to delay closing and allow the seller to rent-back for a period of time?

What's the seller’s real motivation to sell?

Is the home vacant or soon to be?
Have the sellers purchased another home or do they have another home under contract subject to selling the home you are interested in?
Has the property been on the market for an extended period of time including expired listings with the current agent or other previous agents?
Are the sellers divorcing?
Was there a death in the family?
Is the property being foreclosed on?

What is the likely counter offer from the seller?

What will your next counter offer be?

How should my negotiating strategy change if I know there are other offers being presented?

What can you give up in the negotiating that isn’t as important to you as it is to the seller?

Successful negotiating is a complex process. You need to be very aware of the nuances of negotiating in order to get the best price and terms. That is one of the strengths that experienced buyer agents bring to the table. They negotiate on behalf of buyer clients every day. They have developed the experience and special techniques to consistently help their buyer clients achieve success in the home buying process. Are you able to handle the negotiating as well as a trained real estate professional? Do you really feel confident that you can consider buying a home without a Realtor?

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SBI!