If you are looking for a house but want to avoid the real estate agency, you will have to do it yourself. Follow these tips to buy it without outside help.
Steps
Step 1. Try to get a mortgage pre-approved
Unless you want to pay for everything in cash, you will need to be financially secure in order to make this purchase. A mortgage pre-approval will specify the amount of the loan you qualify for (i.e. how much you can spend on the home) and will come in handy when negotiating with the seller.
Step 2. Find the houses that interest you
When you rely on real estate, their job is to find properties for you. By bypassing this figure, you will also be responsible for finding the houses. Try for example:
- Listings for properties for sale - however, it is important to consider that they must be sold by the owner if you want to buy them freely.
- Online ads on sites like Craigslist make it possible to find a home without much effort.
- Local newspapers that published listings of properties for sale in both classifieds and agency sections.
- Take a walk around the area where you would like to buy and look for the "Direct Sale" signs with the owner number below.
- Sites like Homes.com and Trulia.com have a database of homes for sale where you can search using parameters related to location, price range, etc.
Step 3. Contact the owners of the home you are interested in
Ask questions then ask for a visit.
Step 4. Determine if the house is worth the amount asked
Once you decide you are interested you need to understand how much you are willing to offer. There are many ways to value a home without the help of a real estate professional:
- Pay someone to value the property. He will study it methodically by providing you with the documentation that those who sell it to you require.
- Even on the internet there are tools that allow you to understand what are the specifics of a house to be evaluated and taken into consideration. An online search will give you a list of valuable calculators that you can use to make a decision.
- A Comparative Market Analysis (CMA) considers home structure, property, and neighborhood to provide an accurate figure of the current market value. You can make a free one on sites like RedFin.com.
Step 5. Choose a real estate attorney
Once you have found and chosen the house and want to make an offer, you will need a professional to have the necessary legal documents.
Step 6. Make an offer
Let the lawyer work for you by presenting the offer to the sellers. Negotiate until you come to an agreement.
Step 7. Contract
The lawyer will draw up the purchase agreement that both you and the seller will have to sign.
Step 8. Bring the contract to the mortgage issuer
Your mortgage will be disbursed and closing times will be defined.
Warnings
- Many choose to buy a house without an agency to avoid paying a commission. Know that you don't always pay for it though. Agents usually get paid by the seller. The seller usually includes this percentage (usually 6%) in the total price. The price goes down if you remove real estate developers from the equation.
- Statistically, homes sold directly by the owner cost the same or more than would be sold by an agency. So you might not make a big deal in the end.
