Purchasing a house without a realtor?

My wife and I have found a house that is FSBO (For Sale By Owner) and we do not have a realtor ourselves. How much additional work are we setting ourselves up for by not involving a realtor in the process and what things should we especially be looking out for? We have looked around and did our own market analysis so we know that the house is priced correctly. We are thinking about making a first offer of 95% of the asking price since the 3% - 6% is being taken out of the equation for not using a realtor. We are also first time home buyers so the entire process is new to us. I know that we will need the house inspected, appraised, surveyed, and we will have to find an attorney to look over the paper work (by the way we are pre-approved for our loan). We also know to put an opt out option or a home repair clause just in case something major comes up in the house inspection so we are not bound to the contract. Is there anything else that we should especially be on the outlook for?

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  • ?
    Lv 4
    1 decade ago
    Favorite Answer

    I actually take a huge offense to the comment earlier about Realtors being over rated. Our job is to protect you as our clients. There is so much on time and what needs to be in. Our job is to not only get you into a home safely, but get you in with out hassle and lawsuits! I understand some people have a bad experience and it makes the rest of us look bad.

    So next...for you I would find a real estate lawyer who can guide you though the contract and inspections. You dont need a survey, your appraisal will look at the facts of the home info. If you can call some local real estate brokers they have agents sometimes who (for a small fee) will help you too. Agents are not bad people. I have been a Realtor for many years and I have helped so many people. If you have any questions regarding this answer please let me know. Good luck and congrats!!

  • 1 decade ago

    As a Realtor for 15 years, You basically did most of the work yourself - you don't really need a Realtor at this point - but there are alot of inherent benefits to bringing one in and finishing the transaction.

    You did the hard part (finding a home) contact a "fee for service" Realtor in your area to draw up the correct documents (not just the contract) and over see the entire transaction. They should charge you a realatively small fee for thier time and services. The most important part is that you are not getting burned, your Realtor will have E&O insurance to protect you, and that everything is done correctly. A bargain is not a bargain if you are getting screwed!

    Source(s): www.hqhomes.com www.cabellahomeloans.com
  • 1 decade ago

    What sort of market analysis did you do? If you looked it up in zillow, you're paying too much.

    You have an opt out for home repair. What other opt outs and Contingencies might you need?

    You've got an attorney, which is good. But the attorney may or may not know the market, and probably won't help you negotiate, especially if they're running the escrow.

    This is save some dimes mentality that are likely to cost you multiple dollars. Just sayin'

    Source(s): I regularly have people contact me to see if I can fix problems after the fact. There is no going back in time.
  • 1 decade ago

    Realators are overrated. Just go to your local Title Company and tlak to them. They are the ones that handle all of the paperwork. I bought my home from the owner, and It was just fine and I saved what the realtor would have cost me. Just ask the title company what needs to be done and inspected. They handle all of that stuff, too!!!!! You won't need an Attourney, the Title Company takes care of all of the legal paperwork. I have no idea why there are even realtors. I wish that I would have had more confidence when I sold my house! I would have sold it by owner!!!! ALSO, The Title Company will help you get a loan if you find one that is a Title and Loan Company.....You should have no problems.

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  • Anonymous
    1 decade ago

    It sounds like you've done your homework. However, as first time home buyers, I would highly suggest using a realtor. They really earn their money, and save you countless hassles.

    There's a tremendous amount of paperwork that needs to be done. They will know everything you need to do, all forms, all permits, etc.

  • 1 decade ago

    Offer the 95% and ask the seller to pay up to 3% of the closing cost. If it is in the country have them pump out the septic. If you have other mortgage related questions let me know.

    Source(s): Licensed Mortgage broker serving Wisconsin, Minnesota, and Florida.
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