Going it alone The pros and cons of buying a home without a real estate agent

Many vacationers, actors, writers and professional athletes have gotten by without one for a long time now. So who says homebuyers can’t do the same? For generations, the top rule of real estate was you needed a good agent or Realtor to help you find and purchase a home. But today’s better-educated consumer, armed with Internet tools, can complete the process without one, say the experts — provided they’re aware of the risks involved. “It’s absolutely easier now than ever before to buy and close a home without a real estate agent, thanks to the availability of online property listings and accurate home value data from companies like Redfin, Zillow, and Realtor.com,” says Mike Qiu, a licensed broker/ real estate investor in Seattle. “In the past, only Realtors had information on current listings, and they provided their clients with the information consumers couldn’t get without being a member of the Multiple Listing Service. But nowadays, this information can be easily found through publicly available websites without much of any delay.” The main advantage of forgoing a buyer’s agent is the potential to save money. “Closing without an agent can save thou

searching the internet, attending open houses on your own and scheduling private showings directly with a listing agent or the actual homeowner,” Saadeh suggests. Eventually, you’ll want to hire a closing attorney and/or reputable title company in your area to draw up and review a purchase contract as well as enlist a professional to perform a full property inspection (required by most lenders). “A lawyer, acting as your advocate in place of an agent, can spot any legal issues involved with the property, the purchase contract, or the closing process,” Walzer says. property-licensed real estate attorney and professor in Somerville, New Jersey, explains that the buyer can make an offer on a home at a lower price but include terms that reduce the seller’s agent commission. “If the seller’s agent agrees, the cost savings go to the buyer, and the seller can net the same as if the buyer had an agent.” Those savings can be substantial. Say you desire a home priced at $500,000. Cutting the expected 6% commission in half equates to $15,000 — an amount you may be able to persuade the seller to lower their price by. Another plus of purchasing without an agent? “Many don’t have their client’s best interests at heart and may encourage and facilitate a bad deal just so the agent can get a commission,” Saadeh cautions. But make no mistake: Cutting a buyer’s agent out of the equation has its downsides. “For many buyers, working with an agent will make the process easier. A good agent can help you find the right home more quickly, understand each step of the complicated process and provide useful advice throughout. Someone buying their first home will rarely have that knowledge,” says William Walzer, an attorney with Davidoff Hutcher & Citron LLP in New York City. “You also risk overpaying or buying a home with serious problems that the agent could have warned you about. And you’ll miss out on the valuable contacts an agent can recommend, like a reputable home inspector, lawyer, moving company and mortgage broker.” Also, sellers fielding multiple offers may consider a self-representing buyer to be higher-risk, which could nix your chances of landing the home, Hunt adds. If you’re still determined to drive solo on the route to a home purchase, prepare to do your homework. “You must find your own homes for sale by sale of the home, which they split with the buyer’s agent. Technically, the buyer doesn’t pay this commission outright, but rather the commission percentage is included in the seller’s listing price.” Rajeh Saadeh, a sands on agent commissions,” notes Liam Hunt, market analyst at SophisticatedInvestor.com. “Generally, the seller’s agent earns a 6% commission on the