According to a November 2023 survey from the National Association of Realtors, 89% of buyers recently bought their home through a real estate agent or broker, and only 6% purchased directly through the owner.
However, after new policies governing real estate agent commissions were enacted in August 2024, home buyers may now be responsible for paying their own agent fees. Buyers can negotiate for the seller to cover the commission, but in a hot seller’s market, this can be tough to pull off.
With this in mind, you might wonder if it’s worth buying a home without a Realtor to make the purchase more affordable. To make the most informed decision possible, you should understand how to buy a house without a Realtor and the potential risks.
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Buying a house is one of the biggest financial investments you’ll ever make, and not having an experienced professional to help you out can be pretty risky. However, if you’re set on buying a house without hiring a Realtor, here’s a step-by-step guide on how to do so.
Before you start house hunting, you’ll want to get preapproved for a mortgage so you know what loans you could be approved for and how much a lender might be willing to loan you. Plus, having a mortgage preapproval letter shows sellers you’re a serious and credible buyer.
When you apply to get preapproved for a mortgage, lenders will look at your income, debt-to-income ratio (DTI), credit scores, and other financial information to determine your maximum loan amount and interest rate. You can skip this step if you’re an all-cash buyer.
Dig deeper: What documents do I need for mortgage loan preapproval?
Once you receive a preapproval letter and know your budget, it’s time to start narrowing your search for the perfect home. Websites like Zillow, Redfin, and Trulia are all solid places to find houses for sale in your desired area. These sites also come with filters to help refine your search based on factors that matter to you. Once you find a few properties that catch your eye, contact the listing agent or seller to arrange a viewing.
After viewing the property, ask for a seller’s disclosure to see if there are any potential issues with the home. A seller’s disclosure is a document for the current homeowner to inform buyers of known conditions on the property, and it’s mandatory in most states. Common disclosures include flood damage, pest infestations, roof leaks or defects, cracks in the foundation, and property boundary issues.
Once you’ve decided on a home, the next step is to submit an offer to the seller. Your offer should include information such as your price, the property’s address, the down payment amount, the date you’d like to close on the home, and more. Real estate contracts vary by state, so it’s a good idea to have a real estate attorney review your offer to ensure it complies with local laws and regulations — especially if you don’t have a real estate agent to guide you.
Learn more: How much are real estate attorney fees, and what do they cover?
5. Get an appraisal and home inspection
Most mortgage lenders require a home appraisal to help them determine the value of your property as collateral against the loan. Not all lenders require a home inspection, but it’s still worth getting one done since it can uncover potentially hazardous conditions in the house that may otherwise go unnoticed, such as unsafe heating or foundation cracks.
Read more: Your home inspection checklist
If the appraisal comes in lower than expected or the inspection reveals issues with the property, you could ask the seller to lower the price of the home or make repairs to address the issues identified in the inspection.
Lastly, you’ll finalize the sale by signing a purchase agreement and closing documents. In some states, you must have a real estate lawyer accompany you at closing. But even if it’s not required, having an attorney by your side is still recommended. They can go over the documents and paperwork with you at the closing table to ensure you understand what you’re signing.
If you’re buying a house without a Realtor, you’re essentially stepping into their shoes and taking on many of their responsibilities, including the following:
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Finding suitable properties
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Understanding local real estate market trends
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Arranging viewings
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Performing due diligence by researching property histories
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Negotiating, preparing, and submitting offers
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Communicating with appraisers, inspectors, and lenders
If any of this feels overwhelming or you simply don’t have the time and energy to do it yourself, hiring a Realtor might be a safer bet.
Dig deeper: What does a real estate agent do, and do you need one?
If you’re considering forgoing a Realtor during your homebuying journey, weigh these pros and cons before deciding.
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You won’t have to go through a third party. Without an intermediary, you get to communicate directly with the seller or their agent, which typically means less back-and-forth.
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You have more control. As your own real estate agent, you’ll have more control over every aspect of your home-buying journey, from searching for properties to making offers.
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You could save on commissions. Not working with a Realtor could save you commission fees, which could add up to thousands of dollars, depending on the home’s purchase price.
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No negotiation support. Without a professional to help you negotiate a purchase agreement, you could end up overpaying for a property or agreeing to unfavorable terms in the contract.
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Limited access to listings. Without Realtors, you may not have access to the Multiple Listing Service (MLS), a private database they use to access information about properties for sale and find available listings.
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You could end up spending more on lawyer fees. If things go wrong as you try to buy a home on your own, such as legal complications or a breach of contract, you may need to pay expensive lawyer fees to fix these issues.
Learn more: How much money do I need to buy a house?
It depends. In the past, sellers usually paid both the buyer’s and seller’s agent fees, so there wasn’t much financial benefit for you to buy a home without a Realtor. However, as of August 2024, things have changed. Home sellers are no longer automatically responsible for paying both agents in a real estate transaction.
Now, buyers are responsible for reaching an agreement about compensation with their agent before working together. While sellers can still compensate the buyer’s agent, it’s no longer a given. Generally, the buyer’s agent receives around 2.5% to 3% of the house’s purchase price as commission. On a $400,000 home, that comes to around $10,000 to $12,000 in Realtor fees for the buyer.
That said, while buying a house without a Realtor today could save you 2.5% to 3% commission, much more legwork is involved than if you hired one. Plus, if things go south, you could end up overpaying for your property purchase or face expensive legal issues.
In your offer letter, introduce yourself and explain your motivations for buying the house. You could also share details about your open house experience and explain why the property is the perfect fit for you — at the same time, you don’t want to provide too many personal or emotional details in the letter. Then, outline the financial details of your offer, such as your down payment amount and mortgage preapproval. In the last paragraph, make your final appeal and show you’re a serious buyer. Search for “Home offer letter templates” online for inspiration.
The risks of buying a house without a Realtor include overpaying for a home, running into legal trouble, having limited access to listings and market information, and not having support during negotiations. All these risks could cost you more money than you save by not hiring a Realtor.
Everyone is different, but in general, it’s a good idea to use a Realtor when buying a home. Though you aren’t legally required to use a real estate agent, having one can save you from many headaches in the home-buying process — especially if you have zero experience dealing with real estate transactions.
This article was edited by Laura Grace Tarpley.