Many prospective home buyers - at least one out of every five, according to recent surveys - state that they would like to be able to buy a house without using a real estate agent. There are very good reasons why some people wish to buy without using a traditional buyer’s agent - not the least of which is the opportunity to save thousands in realtor fees!
You may be the type of person who could buy a home without an agent. If you are thinking about doing that, you need to understand the steps of the transaction process, and the information and actions you need to take at each step.
Every real estate transaction has three basic steps:
So, no matter what, you will need to complete these steps.
Let’s assume, for simplicity sake, the sale price of the home is $1,000,000. Below are three options for buying a home without a real estate agent. Each option varies in the costs for the buyer and in the time and effort needed to complete the transaction. :
OPTION 1: Use the seller’s agent.
COST: $15,000 - $30,000
TIME: More time intensive than using a traditional buyers agent (the buyer takes on then workload of communicating with the seller’s agent directly).
HOW IT WORKS: You (the prospective buyer) find a home, tour it using open houses or the seller’s agent, and decide to make an offer. Most seller’s agents will commit your offer to a contract for you to deliver to the seller. The seller’s agent will help you reach a deal, but keep in mind they are a professional negotiator working for the seller, and thus have a duty to represent the sellers interests first and foremost. Once you have come to terms, the seller’s agent will process the closing through a Title and Escrow company.
The seller’s agent will have lender referrals, inspector referrals and contractor referrals, but keep in mind these vendors all have working relationships with the seller’s agent (who of course represents the seller). You will have to use the seller’s agent to gain access to the property for any additional showings, inspections, or walk throughs.
If you are comfortable negotiating with a seller’s agent to determine a sale price and negotiate inspection remedies, this is a good option for you. The seller’s agent is motivated by the additional commission ($15,000 - $30,000) they will make if you have them commit the deal to writing.
OPTION 2: Use an attorney.
COST - $2,000-$10,000
TIME: Usually significantly more time intensive than using a traditional buyer’s agent (the buyer takes on the time commitment to work and communicate back and forth with both the lawyer and the seller’s agent).
HOW IT WORKS: You (the prospective buyer) find a home, tour it using open houses or the seller’s agent, and decide to make an offer. You then seek out and find a real estate attorney to assist you with the transaction.,The attorney will commit your offer to a contract for you to deliver to the seller agent. They will not help you reach a deal, so you must be comfortable negotiating with the seller’s agent. Once you have come to terms, the seller’s agent will process the closing through a Title and Escrow company.
The attorney helps you ensure the contract is properly written and advises you and all legal considerations that are important to protect your interests when reaching a deal. But they will not have lender referrals, inspector referrals, contractor referrals and will most likely not be help you negotiate post-inspection remedies. They will not provide additional customer service (aka “hand holding”). You will have to use the seller’s agent to gain access to the property for any additional showings, inspections, or walk throughs.
If you do not need showings, are comfortable with the mechanics of a real estate transaction, are comfortable negotiating with a seller’s agent, and are willing to pay an attorney for additional hours when challenges arise, working directly with a real estate attorney may be an acceptable solution for you.
OPTION 3: Use Alokee.
COST - $8,900
TIME: For buyers who like to search homes on their own, Alokee is much less time intensive than using a traditional buyer’s agent. Buyers can submit offers in a matter of minutes on the app, rather than communicating back and forth with a buyer’s agent and then waiting for the agent to draft and submit the offer.
HOW IT WORKS: You (the prospective buyer) find a home, tour it using open houses or Alokee and decide to make an offer. You can make your own offer to the seller agent directly on Alokee’s website. You negotiate your own deal through the Alokee’s website, with the ability to talk and/or chat with Alokee real estate attorneys when you need guidance. Once you have come to terms, Alokee will process the closing through a Title and Escrow company digitally (your interactions will happen via our site versus through phone calls).
Alokee has lender referrals, inspector referrals and selected contractor referrals in our portal. You can negotiate any post-inspection remedies, with the ability to talk and/or chat with Alokee real estate attorneys when you need guidance.
If you prefer doing business digitally, are confident in your ability to learn about basic real estate terminology, and don’t need a lot of hands-on customer service, Alokee is a great option for you.
As you can see, there are a few ways to buy a house without using a traditional buyer’s agent. If you have any questions about buying a house - with or without a real estate agent. For more information, please check out our website at www.alokee.com or follow us on social media.
CA DRE# 02201041