Do you need a REALTOR® to buy a house? What to know

So you’re in the market for a new abode? Exciting times! Finding your first or next home is one of the most thrilling, fun, and sometimes scary, endeavors you can undertake. Envisioning yourself and your loved ones in a new space, perusing available houses online, and touring candidates in person can be a blast.

There’s another side to this search though, that's, well, not all fun and games. Successfully purchasing real estate can be a winding road filled with possible pitfalls and speed bumps that a competent and experienced REALTOR^® can help you navigate through. But, you may be wondering, do you need a REALTOR^® to buy a house?

Can you buy a house without a REALTOR^®?

Can you buy a house without a REALTOR^®? Yes. Should you buy a house without a REALTOR^®? Probably not. You’re not legally required to use a REALTOR^® or real estate agent to buy a house. Working with a REALTOR^® will depend on your preferences and needs. However, many home buyers find it helpful to work with a REALTOR^® due to their market expertise, negotiation skills and knowledge of the home buying process.

What’s the difference between a REALTOR^® and a real estate agent, you ask? A real estate agent is a licensed professional who is able to help people buy and sell real estate. REALTORS^® are real estate professionals who are members of the National Association of REALTORS^® (NAR) which means that they subscribe to the NAR codes of ethics and standards. The ethical guidelines and best practices encourage REALTORS^® to always keep their clients’ best interests in mind.

Pros and cons of buying a house without a REALTOR^®

You may already be getting the sense that using a REALTOR^® during your home buying process can be beneficial. That said, it’s important to look at the pros and cons of any decision before diving in.

Pros

• FSBOs (sometimes)
• Commission savings for the seller
• Being in complete control

Cons

• Lack of knowledge
• Navigating a complex process alone
• Reduced access to off market homes
• Possible legal complications
• No access to the vast network most REALTORS^® can provide

How to buy a house without a REALTOR^®

There are a lot of steps to buying a home, and a REALTOR^® can help navigate each of them. That said, if you’re going it alone, here’s how to get yourself to the closing table.

1. Get a preapproval: Houses aren’t free. Oh, you knew that already? Purchasing a home is usually the largest investment most people make. If you aren’t paying cash, getting a loan (mortgage) is a must. The first step is to get a mortgage preapproval. This involves selecting a lender, giving them a clear picture of your financial situation, and getting a preapproval letter that will accompany your offer when you find the right house.
2. Make an offer: So you have found your dream home (or one good enough for right now). Hurray! Time to go get it by submitting an offer. Understanding how to make an offer on a house is critical. The key is understanding what the seller is looking for in terms of price, closing timeline, and other variables that will make your offer attractive enough for them to accept, but not so attractive that you don't feel like you're getting a good deal. Your offer should include, at a minimum, a sales contract, your preapproval letter, and signed Seller’s Disclosures.
3. Ask for a Seller’s Disclosure: A Seller’s Disclosure statement is a document signed by the seller that describes the condition of the house. This includes what is and isn't working, what is and isn't included, and any significant damage that has occurred while the seller has lived in the home. If there has been water in the basement, for example, that is something the seller should disclose to any potential buyers. 
4. Find a real estate attorney: Working with a real estate attorney is important because you won't be using a REALTOR^® to review the mass amount of paperwork involved in purchasing your new home.
5. Get a home inspection: Getting a home inspection is an important part of the home buying process because it helps minimize the nasty surprises that can come up after the sale. If the roof is leaking, for example, you’ll want to know that, and possibly ask for a fix or reduction in price, before you close the deal.
6. Negotiate: It’s hard to negotiate without a REALTOR^® since they know all the “tricks of the trade,” but it’s not impossible. Items to think about and possibly negotiate on include the sale price, items that need to be fixed, and the sale timeline, just to name a few.
7. Close on the home: The closing process occurs after all the negotiation and details of the sale have been ironed out between you and the seller. This usually occurs at a title company. What title company to use should be decided upon once your offer is accepted and then constant communication with them throughout the process will help ensure a smooth closing.

Buying a house without a REALTOR^®: FAQs

Hopefully you feel a little more informed about buying a house without a REALTOR^® or real estate agent after reading this far. However, some questions may remain. Let’s take a look at some frequently asked questions about buying a house by yourself.

What is the value of buying a house with a REALTOR^®?

In rare cases, buying a house without a REALTOR might save you some money or help get you the house you want. If the seller is a FSBO, they may not want to pay a buyer’s agent commission on the sale. Since you don’t have a REALTOR^®, they won’t have to. This might make them more agreeable to a lower sales price. In some cases, a FSBO might not be willing to work with a buyer’s agent no matter what. Doing the transaction on your own might be a necessity to make an offer on that particular house.

Does buying a house without a REALTOR^® save you money?

As mentioned above, it can be done with a FSBO. In addition, it sometimes can with a property that is listed for sale with a REALTOR^® under the same principle. If you don’t have a buyer’s agent, the seller may reduce the sales price, because they are saving money by not paying an agent to represent you. Keep in mind though, a good REALTOR^® will negotiate a sale that usually saves you much more money than their commissions cost you or the seller.

What if I’m working with a REALTOR^® or agent, but the seller isn’t?

If you're working with a REALTOR^® or agent and the seller isn't represented, your agent will typically handle communication directly with the seller or their representative, facilitating the transaction on your behalf. However, it's important to ensure all agreements and negotiations are clearly documented and understood by both parties.

Do I need a REALTOR^® if I’m buying a house from a family member or friend?

No, but it’s usually a good idea. A REALTOR^® can make sure everyone knows the mechanics of the transaction and can keep things running smoothly. They can also be a good buffer between you and your family member or friend when it comes to making sure negotiations don't get “personal.”

Who pays the REALTOR^® or real estate agent?

In almost all cases, the seller pays both real estate agents that take part in a transaction. They sign a contract with their listing agent defining how much they will pay them as well as how much they will offer to a buyer’s agent that brings them a purchaser for their home.

The bottom line

The benefits of working with a REALTOR^® are plentiful, as outlined in this article. However, you aren't required to use one if you don’t want to. Do your research, ask your friends/family who have bought homes, and decide if buying a home with or without a REALTOR^® is the right decision for you. Already decided you want to get started with a REALTOR^®? A good next step is to connect with an expert agent today and start your home buying journey with confidence.