Can I Buy a House Without a Real Estate Agent?

Yes, but it comes with some risks. If you’re ready to start touring houses, you may be weighing the benefits of finding a real estate agent. Finding an agent comes with a list of benefits, but there are cases in which it may be wise to go it alone. It could save you time, money, and some hassle. So, what should you do?

Here’s your first step: Examine the decision even closer, and weigh our pros and cons of buying a house without a real estate agent.

The Pros and Cons

The Pros:

Potential To Save Money

This is the biggest reason why buyers may choose to go solo. For some savvy buyers, the savings may be all the convincing they need. Typically, the cost of a real estate agent is 5% to 6% of the sale price, either paid by the seller or an even split between both parties. By not using a real estate agent, you may be able to negotiate for a lower sale price since there would be only one real estate agent involved (assuming that the sellers hired an agent to list their home).  

No Middleman

Removing the real estate agent from the homebuying process is appealing when you want to work with the seller directly. No dealing with the relaying of messages or waiting for callbacks. You essentially become your own agent. Meaning, you take complete control of communication with the seller, and make sure your thoughts are heard, needs are met, and offers are crystal clear.

Direct Connection

Looking to buy your family member’s house? Putting down an offer on your neighbor’s property? This is what we mean by a direct connection. In these cases, you don’t need an agent to find listings, nor are they as necessary for negotiating the home’s price and conditions, because you already have a relationship with the seller.

This becomes even more beneficial to you when the house is deemed “for sale by owner,” which is when a home is sold without an agent. On top of the established comfort level between you and the seller, your negotiations are (hopefully) less rigid, and easy in nature.

The Cons:

Less Expertise

You can’t match the knowledge of a real estate agent. Sure, you can memorize all the homebuying and mortgage terms in the book, but a real estate agent is trained to speak the language and educate you on the process. Who would you turn to if you have a pressing question in a stressful situation? Plus, buying a home requires a lot of documentation, forms, and reports, and an agent will help you manage the paperwork, while avoiding delays and costly missteps along the way.

Less Access to Information

You only have access to so much information. Real estate sites and home buying apps have taken the internet by storm. You can find up-to-date listings any time you want. And yet, you still aren’t privy to all the homes for sale in a given neighborhood whereas an agent has access to all the listings, most notably in the MLS real estate portal.

They also have the know-how to find those hidden gems for sale, and they may get advance notice on properties before they hit the market. Plus, if you’re looking to buy a house in a town you’re unfamiliar with, learning all the ins and outs of the new area can be difficult.

Less Home Knowledge

Information about a home is anyone’s guess. When viewing a house without a real estate agent, it’s solely up to you to determine the physical property and the “nuts and bolts” of the house are in good standing (before the home inspection process, of course). Are you confident in your ability to assess the house with the same attention to detail of an agent?

Agents can also help you get a home’s Comprehensive Loss Underwriting Exchange report, or CLUE. This report gives dates of claims, cause of loss, amount paid, and more. This report can provide comfort or apprehension for a buyer. 

No Negotiating Help

Negotiating isn’t a walk in the park. In a lot of ways, negotiating is an art form, especially for something as significant as a home. You may think you have the negotiation skills necessary to woo a seller into accepting your offer, but don't count on it. Most sellers aren’t naïve and will probably have an agent right next to them.

Real estate agents are seasoned negotiators and will lead the charge in making sure you get the best deal based on the many factors that influence the home’s value. Your inexperience or emotions could get the best of you if you don’t have an agent at the negotiating table.

Make sure you weigh the advantages and disadvantages of buying a house without an agent before you move forward. What may seem like the right decision for one buyer may not be for your situation.

If you chose to forgo a real estate agent, you need to demonstrate to the seller you mean business, which makes getting preapproved for a mortgage even more important. Get in touch with a Newrez mortgage consultant to discuss your mortgage options.

Be sure to check out our articles for even more helpful mortgage and homebuying tips.