Skip to content

Why Buying a House Without a Realtor Is a Bad Idea

Buying a house is one of the most significant financial decisions you will make in your lifetime. While it can be tempting to go it alone and purchase a home without the assistance of a real estate agent, doing so can come with significant risks and drawbacks. This blog post will explore why buying a house without a realtor is a bad idea. 


Why Do People Buy a House Without a Realtor?

While working with a real estate agent when buying a home is generally recommended, some people may purchase one without one. There are several reasons why someone might make this decision.

One reason people may buy a home without a realtor is the desire for more control over the process. When working with a real estate agent, the buyer may feel they have less say in important decisions, such as which properties to view or how much to offer. Buyers can have more direct input by purchasing a home without an agent.

Additionally, some buyers may simply prefer to handle things on their own. They may feel confident navigating the home-buying process and want to take on the challenge themselves. However, it is essential to note that buying a home without a realtor can be risky and may not be the best choice for everyone.

There are also rare instances when buyers must pay for the use of a real estate agent when purchasing a For Sale By Owner (FSBO) house. Contrary to popular belief, however, these instances are few and far between, as the seller almost always pays the real estate agent’s commission fee instead of the buyer. 


5 Times When it May Be an Advantage Buying a House Without a Realtor

Although most people rely on a buyer’s agent for a home purchase–about 88%, according to a 2020 survey by the National Association of Realtors (NAR)–here are five scenarios in which buying a house without an agent might be preferable.

1. You’re Related to the Seller

If you are selling a home within your family, you might be able to avoid hiring a real estate agent. In that case–as long as you have agreed on a price and other key details of the transaction–you likely could handle it without the seller paying several thousand dollars in commission. Consider consulting a lawyer to conduct a title search on the home and ensure all the paperwork is filled out, reviewed, and filed correctly.

2. You Know the Area

When buying a house in an area you’re intimately familiar with, you might not believe it’s worth hiring a buyer’s agent. However, there are more many services a real estate agent can provide than just “knowing the market,” such as helping you find the home and negotiating with the seller’s agent.

3. You Can Save Money

There are RARE cases in which a buyer might have to pay all or part of a buyer’s agent’s commission. For example, if it is a For Sale By Owner, they might clarify that they will not negotiate fees with a buyer’s agent. In this case, you might decide it’s worth working directly with the person selling the home instead of hiring an agent.

4. You Get to Work Alone

You might not trust dealing with a buyer’s agent, even though they are legally required to represent your interests. If you feel like an agent would push you toward a deal too quickly or set you up with the wrong home, you might feel more comfortable taking it on yourself.

You’ll want to be careful not to be overmatched when dealing with the seller’s agent, who only represents the seller’s interests. Think of it like negotiating a divorce settlement with just the counsel and expertise of the other party’s lawyer—it might not go well for you.

5. You’re Buying a New Home

If you are focused only on buying a newly built home, you likely could work out the arrangement directly with the builder. According to the NAR survey, about 6% of buyers worked with a builder or builder’s agent to purchase a home in 2020.


Disadvantages of Buying a House Without a Realtor

While there are some potential advantages to buying a House without a realtor, there are also several significant drawbacks. One of the biggest is the buyer’s lack of real estate expertise that an experienced real estate agent can provide. Agents have extensive knowledge of the local market, the home-buying process, and the legal and financial aspects of buying a home. Without an agent, the buyer may be disadvantaged when making informed decisions and avoiding potential risks.

Another potential disadvantage of buying a house without a realtor is the potential for legal and financial complications. Real estate transactions can be complex, with numerous forms, contracts, and legal requirements that must be met. Without an agent to guide them through the process, the buyer may risk making mistakes or overlooking important details that could lead to legal or financial issues.

Finally, buyers who choose not to work with a realtor may miss out on valuable connections and resources that agents can provide. For example, agents may have access to off-market properties or be able to connect buyers with local lenders, inspectors, and other professionals who can help facilitate the home-buying process. By not working with an agent, the buyer may be limiting their options and potentially missing out on valuable opportunities.


Will Buying a House Without a Realtor Save You Money?

One of the most common reasons people buy a house without a realtor is the belief that it will save them money. While it is true that working without an agent can eliminate some costs, it is essential to understand the full financial implications of this decision.

However, it is crucial to consider the potential costs of not working with an agent. Without an agent, the buyer may be less likely to negotiate a favorable purchase price, potentially resulting in a higher overall cost. Additionally, the buyer will still to pay for various services and inspections, such as a home inspection or title search.

Overall, whether buying a house without a realtor will save you money depends on several factors, including the purchase price of the home, the local market conditions, and the specific services required. It is essential to carefully weigh the potential costs and benefits before deciding. According to NAR, 86% of buyers recently purchased their homes through a real estate agent, and 10% purchased directly from the owner


If You Were to Move Forward in Buying a House Without a Realtor, Here’s What’s Involved

Buying a home without a realtor can be complex, but it is possible to do it successfully with the proper preparation and resources. Here are the general steps involved in buying a home without a realtor:

Determine Your Budget and Financing Options

Before you begin looking at properties, knowing how much you can afford and what financing options are available to you is essential.

Search for Properties

There are several ways to find homes for sale without a realtor, including online listings, local classifieds, and driving through neighborhoods.

View Properties

Once you have identified potential properties, you must arrange to view them in person. You may be able to contact the seller directly to schedule a viewing.

Make an Offer

If you are interested in a property, you must make an offer to the seller. This offer should include the purchase price, any contingencies or conditions, and a proposed timeline for completing the transaction.

Negotiate and Finalize the Sale

The seller may accept your offer, reject it, or counter with a different offer. If you reach an agreement, you must finalize the sale by completing any necessary paperwork, arranging for financing, and transferring the title.

Complete Necessary Inspections and Paperwork

It is highly recommended that you complete various inspections and paperwork to ensure the property is in good condition and that all legal requirements are met.

Close the Transaction

Finally, you must complete the transaction by paying the purchase price, transferring the title, and arranging any necessary funds or document transfers.


It is important to note that buying a house without a realtor can be challenging, and it may be in your best interest to seek the guidance of a real estate attorney or another professional.


Bottom Line

While buying a house without a realtor is possible, it is essential to consider the potential advantages and disadvantages of doing so. Some benefits of buying a house without a realtor include negotiating directly with the seller and moving more quickly through the process. However, there are also several potential drawbacks, including the lack of experience and resources that a real estate agent can provide.

Working with a real estate professional when buying a house is highly recommended. An experienced agent can provide valuable guidance and support throughout the process, helping you to avoid potential pitfalls and make informed decisions. By working with a real estate agent, you can also benefit from their extensive knowledge of the local market, connections with other professionals, and access to off-market properties.

Ultimately, deciding whether to buy a house with or without a realtor is personal and will depend on your circumstances and preferences. However, if you choose to work without an agent, being well-informed and prepared for potential risks and challenges is crucial.


Buying a House? Let Ahmad Azizi of Option Funding, Inc. Do Your Loan

If you are in the market to buy a house, consider working with me, Ahmad Azizi of Option Funding, Inc. As a local mortgage broker with years of experience in the industry, I’ve built strong relationships with many banks, which allows me to close even the most challenging home deals for my clients.

When you work with me, you can expect personalized guidance and support throughout the homebuying process. I will work with you to determine your budget and financing options and list potential properties that meet your needs and preferences.

One of the most significant benefits of working with me is my extensive knowledge of the local market and the mortgage process. I can provide valuable insight into your loan options.

If you have any questions, please contact me directly through Option Funding, Inc. – I’ll happily answer any questions and provide more information about my services and experience.