How to Buy w/out a Realtor?

[sdduuuude]

Some thoughts for you here.

First of all, you should know that I have purchased exactly 1 house w/ an agent, and exactly 1 house w/o an agent.

The purchase w/o an agent was from a neighbor who also did not have an agent. So, I didn’t have a seller’s agent to deal with. We made the offer very easy. The seller got a check of a certain size and we, the buyer, paid for everything else.

For the purposes of this discussion, when I say “agent,” I mean a good agent who does their job.

Keep in mind – not all of the reasons below will apply to you.

WHY USE AN AGENT? – 3 reasons
The first reason to use an agent is – they save time. A good buyers agent will look at 12 homes and show you 3 of them. If you have time and know how to legally get into the houses w/o an agent (maybe ask the sellers agent to do it), then this isn’t much value. But, most underestimate the pain.

Also, not all of the web sites have perfect MLS visibility. Sometimes agents see stuff you can’t, or see stuff earlier than you can.

Agents know to ask for and what they can get away with. I can’t even expound on this because I’m not an agent. But, at some point an agent will say “you should ask for this” and you will get something you never thought you could.

———–

As far as getting a portion of the commission for yourself, just put it in the offer. The seller’s agent is used to giving up some of the commission.

Perhaps you could sign a contract w/ a buyer’s agent who would work for 1% if you find the house on your own.

Lastly – if you don’t have an agent, find a superb escrow officer and make using that officer part of the offer. Escrow agents understand the process as well or better than most agents, I think, and can explain how contingencies work, ways you can lose your deposit, ways to get out of the deal, etc. as an impartial party to the transaction.

Use your loan, escrow, and title people to the fullest extent. Every time you learn something new, ask them if it impacts the process at all – XBoxBoy’s heater, for example.

[ybitz]

have you considered using Redfin? A discount broker like Redfin might be a good compromise between saving $ and the “hassle” and “risk” of going at it alone.

[ybitz]

have you considered using Redfin? A discount broker like Redfin might be a good compromise between saving $ and the “hassle” and “risk” of going at it alone.

[ybitz]

have you considered using Redfin? A discount broker like Redfin might be a good compromise between saving $ and the “hassle” and “risk” of going at it alone.

[ybitz]

have you considered using Redfin? A discount broker like Redfin might be a good compromise between saving $ and the “hassle” and “risk” of going at it alone.

[ybitz]

have you considered using Redfin? A discount broker like Redfin might be a good compromise between saving $ and the “hassle” and “risk” of going at it alone.

[bearishgurl]

matt-waiting,

As a licensee going on three decades with nearly that amount of concurrent legal experience as well (much of it in the field of land use), I can tell you that there is NO substitute for contracting with a buyers agent who knows like the back of their hand the area you are seeking to purchase in, to help you locate and negotiate the purchase of an acceptable property. Better yet, they should possess a photographic memory of intersections of and major thoroughfares in their market area and be familiar with the nuances of all its subdivisions, no matter what their age. It’s also helpful if they are familiar with the original houseplans as they were built, longtime small businesses in the area and their owners, locations of the premium lots, exact school attendance boundaries, what lies over the ground, what lies under the ground (easements), which complexes were/are in litigation and what the outcome of it was, etc. . . and this is only inventory knowledge. If you are using an agent without inventory and market knowledge of the particular area you want to purchase in, you are doing yourself a HUGE disservice, as there are MANY agents who have lived and/or worked in that particular area all of their lives.

There are many things in a RE transaction that can be easily hidden from a buyer and/or their non-astute agent. There is A LOT of disclosure that needs to be demanded of a private seller. ALL KINDS of things can go wrong in an escrow . . . too numerous to mention here. To name a few, if your agent is incompetent and/or doesn’t possess the requisite knowledge to properly complete your transaction, you can easily lose your earnest money deposit, pay too much for the property, never get your offer presented or presented properly, be in “perpetual escrow” waiting for a lender to agree to sell “short enough” (which will never take place), take possession without the agreed-upon items fixed, get taken to the cleaners by your mortgage broker, sign away your contingencies before they are met or satisfied . . . the list goes on . . . and on.

Much of the history and knowledge of particular subdivisions and properties in a market area can only be gleaned by working the same streets over a long period of time. You can’t get it any other way and you, as a buyer, can’t possibly know these things yourself, nor could an out-of-area agent possibly know it.

I DO NOT BELIEVE IN DUAL AGENCY AND BELIEVE THE LEGISLATURE SHOULD REPEAL THIS SECTION. And I am not alone here. There is NO WAY a listing agent can properly represent a buyer for his/her listed property. THIS IS A CONFLICT OF INTEREST! A listing agent’s fiduciary duty is to the seller. This is the first contract they sign and even if you later sign a buyer agency agreement with them, their FIRST CONTRACT TRUMPS IT. Therefore, they are unable to represent the buyer’s best interests.

matt-waiting, as an unlicensed principal representing yourself, I don’t see you legally being able to claim ANY COMMISSION when placing your own offer. The right to your commission and percentage thereof has to be invoked when you make your offer and you can’t legally ask for any. Commission can only be paid to licensed RE brokers. An agent is paid pursuant to the contract they have with their broker. Brokers and agents are free to distribute any part of their commission back to a buyer at the close of escrow in the form of a rebate. However, this agreement for a commission rebate would be separate from any offer you place and should be executed in writing PRIOR to the acceptance of any offer, if you want to assure your payment upon the successful close of escrow.

I recommend you find a very knowledgeable LOCAL RE agent whose primary market is the exact neighborhood or area you are seeking to purchase in. You HAVE EVERYTHING TO GAIN and NOTHING TO LOSE by being properly represented. A competent and knowledgable agent can save you from making a mistake from which there would be no recovery.

[bearishgurl]

matt-waiting,

As a licensee going on three decades with nearly that amount of concurrent legal experience as well (much of it in the field of land use), I can tell you that there is NO substitute for contracting with a buyers agent who knows like the back of their hand the area you are seeking to purchase in, to help you locate and negotiate the purchase of an acceptable property. Better yet, they should possess a photographic memory of intersections of and major thoroughfares in their market area and be familiar with the nuances of all its subdivisions, no matter what their age. It’s also helpful if they are familiar with the original houseplans as they were built, longtime small businesses in the area and their owners, locations of the premium lots, exact school attendance boundaries, what lies over the ground, what lies under the ground (easements), which complexes were/are in litigation and what the outcome of it was, etc. . . and this is only inventory knowledge. If you are using an agent without inventory and market knowledge of the particular area you want to purchase in, you are doing yourself a HUGE disservice, as there are MANY agents who have lived and/or worked in that particular area all of their lives.

There are many things in a RE transaction that can be easily hidden from a buyer and/or their non-astute agent. There is A LOT of disclosure that needs to be demanded of a private seller. ALL KINDS of things can go wrong in an escrow . . . too numerous to mention here. To name a few, if your agent is incompetent and/or doesn’t possess the requisite knowledge to properly complete your transaction, you can easily lose your earnest money deposit, pay too much for the property, never get your offer presented or presented properly, be in “perpetual escrow” waiting for a lender to agree to sell “short enough” (which will never take place), take possession without the agreed-upon items fixed, get taken to the cleaners by your mortgage broker, sign away your contingencies before they are met or satisfied . . . the list goes on . . . and on.

Much of the history and knowledge of particular subdivisions and properties in a market area can only be gleaned by working the same streets over a long period of time. You can’t get it any other way and you, as a buyer, can’t possibly know these things yourself, nor could an out-of-area agent possibly know it.

I DO NOT BELIEVE IN DUAL AGENCY AND BELIEVE THE LEGISLATURE SHOULD REPEAL THIS SECTION. And I am not alone here. There is NO WAY a listing agent can properly represent a buyer for his/her listed property. THIS IS A CONFLICT OF INTEREST! A listing agent’s fiduciary duty is to the seller. This is the first contract they sign and even if you later sign a buyer agency agreement with them, their FIRST CONTRACT TRUMPS IT. Therefore, they are unable to represent the buyer’s best interests.

matt-waiting, as an unlicensed principal representing yourself, I don’t see you legally being able to claim ANY COMMISSION when placing your own offer. The right to your commission and percentage thereof has to be invoked when you make your offer and you can’t legally ask for any. Commission can only be paid to licensed RE brokers. An agent is paid pursuant to the contract they have with their broker. Brokers and agents are free to distribute any part of their commission back to a buyer at the close of escrow in the form of a rebate. However, this agreement for a commission rebate would be separate from any offer you place and should be executed in writing PRIOR to the acceptance of any offer, if you want to assure your payment upon the successful close of escrow.

I recommend you find a very knowledgeable LOCAL RE agent whose primary market is the exact neighborhood or area you are seeking to purchase in. You HAVE EVERYTHING TO GAIN and NOTHING TO LOSE by being properly represented. A competent and knowledgable agent can save you from making a mistake from which there would be no recovery.

[bearishgurl]

matt-waiting,

As a licensee going on three decades with nearly that amount of concurrent legal experience as well (much of it in the field of land use), I can tell you that there is NO substitute for contracting with a buyers agent who knows like the back of their hand the area you are seeking to purchase in, to help you locate and negotiate the purchase of an acceptable property. Better yet, they should possess a photographic memory of intersections of and major thoroughfares in their market area and be familiar with the nuances of all its subdivisions, no matter what their age. It’s also helpful if they are familiar with the original houseplans as they were built, longtime small businesses in the area and their owners, locations of the premium lots, exact school attendance boundaries, what lies over the ground, what lies under the ground (easements), which complexes were/are in litigation and what the outcome of it was, etc. . . and this is only inventory knowledge. If you are using an agent without inventory and market knowledge of the particular area you want to purchase in, you are doing yourself a HUGE disservice, as there are MANY agents who have lived and/or worked in that particular area all of their lives.

There are many things in a RE transaction that can be easily hidden from a buyer and/or their non-astute agent. There is A LOT of disclosure that needs to be demanded of a private seller. ALL KINDS of things can go wrong in an escrow . . . too numerous to mention here. To name a few, if your agent is incompetent and/or doesn’t possess the requisite knowledge to properly complete your transaction, you can easily lose your earnest money deposit, pay too much for the property, never get your offer presented or presented properly, be in “perpetual escrow” waiting for a lender to agree to sell “short enough” (which will never take place), take possession without the agreed-upon items fixed, get taken to the cleaners by your mortgage broker, sign away your contingencies before they are met or satisfied . . . the list goes on . . . and on.

Much of the history and knowledge of particular subdivisions and properties in a market area can only be gleaned by working the same streets over a long period of time. You can’t get it any other way and you, as a buyer, can’t possibly know these things yourself, nor could an out-of-area agent possibly know it.

I DO NOT BELIEVE IN DUAL AGENCY AND BELIEVE THE LEGISLATURE SHOULD REPEAL THIS SECTION. And I am not alone here. There is NO WAY a listing agent can properly represent a buyer for his/her listed property. THIS IS A CONFLICT OF INTEREST! A listing agent’s fiduciary duty is to the seller. This is the first contract they sign and even if you later sign a buyer agency agreement with them, their FIRST CONTRACT TRUMPS IT. Therefore, they are unable to represent the buyer’s best interests.

matt-waiting, as an unlicensed principal representing yourself, I don’t see you legally being able to claim ANY COMMISSION when placing your own offer. The right to your commission and percentage thereof has to be invoked when you make your offer and you can’t legally ask for any. Commission can only be paid to licensed RE brokers. An agent is paid pursuant to the contract they have with their broker. Brokers and agents are free to distribute any part of their commission back to a buyer at the close of escrow in the form of a rebate. However, this agreement for a commission rebate would be separate from any offer you place and should be executed in writing PRIOR to the acceptance of any offer, if you want to assure your payment upon the successful close of escrow.

I recommend you find a very knowledgeable LOCAL RE agent whose primary market is the exact neighborhood or area you are seeking to purchase in. You HAVE EVERYTHING TO GAIN and NOTHING TO LOSE by being properly represented. A competent and knowledgable agent can save you from making a mistake from which there would be no recovery.

[bearishgurl]

matt-waiting,

As a licensee going on three decades with nearly that amount of concurrent legal experience as well (much of it in the field of land use), I can tell you that there is NO substitute for contracting with a buyers agent who knows like the back of their hand the area you are seeking to purchase in, to help you locate and negotiate the purchase of an acceptable property. Better yet, they should possess a photographic memory of intersections of and major thoroughfares in their market area and be familiar with the nuances of all its subdivisions, no matter what their age. It’s also helpful if they are familiar with the original houseplans as they were built, longtime small businesses in the area and their owners, locations of the premium lots, exact school attendance boundaries, what lies over the ground, what lies under the ground (easements), which complexes were/are in litigation and what the outcome of it was, etc. . . and this is only inventory knowledge. If you are using an agent without inventory and market knowledge of the particular area you want to purchase in, you are doing yourself a HUGE disservice, as there are MANY agents who have lived and/or worked in that particular area all of their lives.

There are many things in a RE transaction that can be easily hidden from a buyer and/or their non-astute agent. There is A LOT of disclosure that needs to be demanded of a private seller. ALL KINDS of things can go wrong in an escrow . . . too numerous to mention here. To name a few, if your agent is incompetent and/or doesn’t possess the requisite knowledge to properly complete your transaction, you can easily lose your earnest money deposit, pay too much for the property, never get your offer presented or presented properly, be in “perpetual escrow” waiting for a lender to agree to sell “short enough” (which will never take place), take possession without the agreed-upon items fixed, get taken to the cleaners by your mortgage broker, sign away your contingencies before they are met or satisfied . . . the list goes on . . . and on.

Much of the history and knowledge of particular subdivisions and properties in a market area can only be gleaned by working the same streets over a long period of time. You can’t get it any other way and you, as a buyer, can’t possibly know these things yourself, nor could an out-of-area agent possibly know it.

I DO NOT BELIEVE IN DUAL AGENCY AND BELIEVE THE LEGISLATURE SHOULD REPEAL THIS SECTION. And I am not alone here. There is NO WAY a listing agent can properly represent a buyer for his/her listed property. THIS IS A CONFLICT OF INTEREST! A listing agent’s fiduciary duty is to the seller. This is the first contract they sign and even if you later sign a buyer agency agreement with them, their FIRST CONTRACT TRUMPS IT. Therefore, they are unable to represent the buyer’s best interests.

matt-waiting, as an unlicensed principal representing yourself, I don’t see you legally being able to claim ANY COMMISSION when placing your own offer. The right to your commission and percentage thereof has to be invoked when you make your offer and you can’t legally ask for any. Commission can only be paid to licensed RE brokers. An agent is paid pursuant to the contract they have with their broker. Brokers and agents are free to distribute any part of their commission back to a buyer at the close of escrow in the form of a rebate. However, this agreement for a commission rebate would be separate from any offer you place and should be executed in writing PRIOR to the acceptance of any offer, if you want to assure your payment upon the successful close of escrow.

I recommend you find a very knowledgeable LOCAL RE agent whose primary market is the exact neighborhood or area you are seeking to purchase in. You HAVE EVERYTHING TO GAIN and NOTHING TO LOSE by being properly represented. A competent and knowledgable agent can save you from making a mistake from which there would be no recovery.

[bearishgurl]

matt-waiting,

As a licensee going on three decades with nearly that amount of concurrent legal experience as well (much of it in the field of land use), I can tell you that there is NO substitute for contracting with a buyers agent who knows like the back of their hand the area you are seeking to purchase in, to help you locate and negotiate the purchase of an acceptable property. Better yet, they should possess a photographic memory of intersections of and major thoroughfares in their market area and be familiar with the nuances of all its subdivisions, no matter what their age. It’s also helpful if they are familiar with the original houseplans as they were built, longtime small businesses in the area and their owners, locations of the premium lots, exact school attendance boundaries, what lies over the ground, what lies under the ground (easements), which complexes were/are in litigation and what the outcome of it was, etc. . . and this is only inventory knowledge. If you are using an agent without inventory and market knowledge of the particular area you want to purchase in, you are doing yourself a HUGE disservice, as there are MANY agents who have lived and/or worked in that particular area all of their lives.

There are many things in a RE transaction that can be easily hidden from a buyer and/or their non-astute agent. There is A LOT of disclosure that needs to be demanded of a private seller. ALL KINDS of things can go wrong in an escrow . . . too numerous to mention here. To name a few, if your agent is incompetent and/or doesn’t possess the requisite knowledge to properly complete your transaction, you can easily lose your earnest money deposit, pay too much for the property, never get your offer presented or presented properly, be in “perpetual escrow” waiting for a lender to agree to sell “short enough” (which will never take place), take possession without the agreed-upon items fixed, get taken to the cleaners by your mortgage broker, sign away your contingencies before they are met or satisfied . . . the list goes on . . . and on.

Much of the history and knowledge of particular subdivisions and properties in a market area can only be gleaned by working the same streets over a long period of time. You can’t get it any other way and you, as a buyer, can’t possibly know these things yourself, nor could an out-of-area agent possibly know it.

I DO NOT BELIEVE IN DUAL AGENCY AND BELIEVE THE LEGISLATURE SHOULD REPEAL THIS SECTION. And I am not alone here. There is NO WAY a listing agent can properly represent a buyer for his/her listed property. THIS IS A CONFLICT OF INTEREST! A listing agent’s fiduciary duty is to the seller. This is the first contract they sign and even if you later sign a buyer agency agreement with them, their FIRST CONTRACT TRUMPS IT. Therefore, they are unable to represent the buyer’s best interests.

matt-waiting, as an unlicensed principal representing yourself, I don’t see you legally being able to claim ANY COMMISSION when placing your own offer. The right to your commission and percentage thereof has to be invoked when you make your offer and you can’t legally ask for any. Commission can only be paid to licensed RE brokers. An agent is paid pursuant to the contract they have with their broker. Brokers and agents are free to distribute any part of their commission back to a buyer at the close of escrow in the form of a rebate. However, this agreement for a commission rebate would be separate from any offer you place and should be executed in writing PRIOR to the acceptance of any offer, if you want to assure your payment upon the successful close of escrow.

I recommend you find a very knowledgeable LOCAL RE agent whose primary market is the exact neighborhood or area you are seeking to purchase in. You HAVE EVERYTHING TO GAIN and NOTHING TO LOSE by being properly represented. A competent and knowledgable agent can save you from making a mistake from which there would be no recovery.

[UCGal]

I purchased my first two homes with agents, and my current home without. So similar experience to sdduuuuude.

Like sdduuude – the non-agent transaction was with someone I knew – in my case it was my father. I knew the house well because it’s the house I grew up in. Since I hadn’t lived in the house for over 20 years, I had my husband (an architect) go over it. Even in a family transaction we negotiated what would be fixed/addressed before COE.

We used a title/escrow company. I think it would be foolish to skip this step.

I know someone who had a similar experience purchasing a SFR in Clairemont from a church member. Title and escrow company were agreed upon, specific terms were put in writing.

If you are looking at inventory on the MLS – I think you’re pretty much locked into having an agent in the process… Since the agents’ fees come from the seller, your best bet is to get a GOOD buyers agent who can find you the right home, help you negotiate the best deal, etc. IMO it only makes sense to go w/out an agent if the home isn’t on the MLS and the terms are pretty straightforward between buyer/seller.

[UCGal]

I purchased my first two homes with agents, and my current home without. So similar experience to sdduuuuude.

Like sdduuude – the non-agent transaction was with someone I knew – in my case it was my father. I knew the house well because it’s the house I grew up in. Since I hadn’t lived in the house for over 20 years, I had my husband (an architect) go over it. Even in a family transaction we negotiated what would be fixed/addressed before COE.

We used a title/escrow company. I think it would be foolish to skip this step.

I know someone who had a similar experience purchasing a SFR in Clairemont from a church member. Title and escrow company were agreed upon, specific terms were put in writing.

If you are looking at inventory on the MLS – I think you’re pretty much locked into having an agent in the process… Since the agents’ fees come from the seller, your best bet is to get a GOOD buyers agent who can find you the right home, help you negotiate the best deal, etc. IMO it only makes sense to go w/out an agent if the home isn’t on the MLS and the terms are pretty straightforward between buyer/seller.

[UCGal]

I purchased my first two homes with agents, and my current home without. So similar experience to sdduuuuude.

Like sdduuude – the non-agent transaction was with someone I knew – in my case it was my father. I knew the house well because it’s the house I grew up in. Since I hadn’t lived in the house for over 20 years, I had my husband (an architect) go over it. Even in a family transaction we negotiated what would be fixed/addressed before COE.

We used a title/escrow company. I think it would be foolish to skip this step.

I know someone who had a similar experience purchasing a SFR in Clairemont from a church member. Title and escrow company were agreed upon, specific terms were put in writing.

If you are looking at inventory on the MLS – I think you’re pretty much locked into having an agent in the process… Since the agents’ fees come from the seller, your best bet is to get a GOOD buyers agent who can find you the right home, help you negotiate the best deal, etc. IMO it only makes sense to go w/out an agent if the home isn’t on the MLS and the terms are pretty straightforward between buyer/seller.

[UCGal]

I purchased my first two homes with agents, and my current home without. So similar experience to sdduuuuude.

Like sdduuude – the non-agent transaction was with someone I knew – in my case it was my father. I knew the house well because it’s the house I grew up in. Since I hadn’t lived in the house for over 20 years, I had my husband (an architect) go over it. Even in a family transaction we negotiated what would be fixed/addressed before COE.

We used a title/escrow company. I think it would be foolish to skip this step.

I know someone who had a similar experience purchasing a SFR in Clairemont from a church member. Title and escrow company were agreed upon, specific terms were put in writing.

If you are looking at inventory on the MLS – I think you’re pretty much locked into having an agent in the process… Since the agents’ fees come from the seller, your best bet is to get a GOOD buyers agent who can find you the right home, help you negotiate the best deal, etc. IMO it only makes sense to go w/out an agent if the home isn’t on the MLS and the terms are pretty straightforward between buyer/seller.

[Author]

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