Buying without agent: what are the concrete steps I need to take?

[Anonymous]

I know it's been discussed to death, but couldn't find a comprehensive list of how to actually make an offer / close on a house if I'm self-representing. I might end up going with a rebate broker, but would at least like to understand all of the steps were I to self-represent. Here are the steps I understand so far along with questions on stuff I don't understand:
- Get pre-approved
- See house, either by: 1) open house; 2) contacting listing agent but pre-clearing with them that I'd be self representing and would want to put buyers agent commission towards closing. If neither of these are options, I have to go with a rebate agent?
- Pre inspect: need to see if the listing agent will open home for inspection; if not, presumably I need an agent, or have to forgo an inspection, correct?
- Make offer: work off of template from friends' offers or engage lawyer to draw it up. Get details from listing agent on how to submit? Include an stipulations on how buyer's agent commission is handled in this offer?
- Choose title company, lean on their attorneys for help with closing if offer accepted.
- Wire EMD to title company for escrow (or give them a check to hold for the seller in the EMD amount).

Am I missing anything? And for some of the steps (seeing house, pre-inspection), it seems like I need an agent if the seller's agent won't play nice, correct? I'll likely go with a rebate agent, or see if the seller's agent is amenable to take dual repping and taking 1% for herself, rebating me the rest. If it matters, we are buying in DC, will decide on the house we want without the help of a buyer's agent.

Thanks!

[Anonymous]

At least buy an offer template or something. Don’t just steal someone else’s work.

[Anonymous]

IME the commission part is tough because most sellers don't think to include a stipulation for a reduced commission in the event of an unrepresented buyer.

I think if you're going to buy without representation the best path would be to figure out an appropriate price for the house and submit your offer X% below that rather than asking for a rebate of the commission.

[Anonymous]

No agent is giving you commission. You are not a broker. There also may be no commission to give.

Sold my house two years ago. Deal was 4 percent or 2.5 percent. Meaning someone walks into open house Unrepresented and buys it I pay 2 percent commission. If a person walks in with buyers broker I pay 4 percent.

Let’s say house is one million commission can be $40,000 or $25,000 so I will take up to 15k less someone without a broker.

It depends arrangement, just use Redfin

[Anonymous]

I've done it twice and highly recommend it. I would suggest offering to pay the listing broker a 0.5% extra fee to draft the contract for you (they do not need to represent you and you would want to dictate the terms and carefully review, etc.). Also agree that in that case you would just negotiate a lower purchase price (e.g. -2.0%) or else you could also use it to be a very competitive buyer and still offer full price which would net the seller 2% more.

[Anonymous]

I have done it several times. Got the contract executed, let my attorney and settlement company go over it and got the property cheaper. It works fine if both buyer and seller have good intention of making it work.

Paying 4% commission to agents is useless if you are in a HOT market.

[Anonymous]

Anonymous wrote:I have done it several times. Got the contract executed, let my attorney and settlement company go over it and got the property cheaper. It works fine if both buyer and seller have good intention of making it work.

Paying 4% commission to agents is useless if you are in a HOT market.

This, but as a buyer you aren't saving any more as the seller already has a contract with a realtor so this only works if its for sale by owner.

[Anonymous]

Why would you go unrepresented as a buyer? It costs you nothing to have an agent, and you're clearly out of your league given the questions you're asking.

[Anonymous]

Anonymous wrote:I have done it several times. Got the contract executed, let my attorney and settlement company go over it and got the property cheaper. It works fine if both buyer and seller have good intention of making it work.

Paying 4% commission to agents is useless if you are in a HOT market.

FFS, this only applies if the seller is FSBO. So, maybe you should say that up front rather than give misleading shit advice.

[Anonymous]

Anonymous wrote:I know it's been discussed to death, but couldn't find a comprehensive list of how to actually make an offer / close on a house if I'm self-representing. I might end up going with a rebate broker, but would at least like to understand all of the steps were I to self-represent. Here are the steps I understand so far along with questions on stuff I don't understand:
- Get pre-approved
- See house, either by: 1) open house; 2) contacting listing agent but pre-clearing with them that I'd be self representing and would want to put buyers agent commission towards closing. If neither of these are options, I have to go with a rebate agent?
- Pre inspect: need to see if the listing agent will open home for inspection; if not, presumably I need an agent, or have to forgo an inspection, correct?
- Make offer: work off of template from friends' offers or engage lawyer to draw it up. Get details from listing agent on how to submit? Include an stipulations on how buyer's agent commission is handled in this offer?
- Choose title company, lean on their attorneys for help with closing if offer accepted.
- Wire EMD to title company for escrow (or give them a check to hold for the seller in the EMD amount).

Am I missing anything? And for some of the steps (seeing house, pre-inspection), it seems like I need an agent if the seller's agent won't play nice, correct? I'll likely go with a rebate agent, or see if the seller's agent is amenable to take dual repping and taking 1% for herself, rebating me the rest. If it matters, we are buying in DC, will decide on the house we want without the help of a buyer's agent.

Thanks!

You're buying in DC, and think you have a chance without an agent?

[Anonymous]

Anonymous wrote:

Anonymous wrote:I have done it several times. Got the contract executed, let my attorney and settlement company go over it and got the property cheaper. It works fine if both buyer and seller have good intention of making it work.

Paying 4% commission to agents is useless if you are in a HOT market.

FFS, this only applies if the seller is FSBO. So, maybe you should say that up front rather than give misleading shit advice.

Actually it does not, the seller’s agent still gets paid and the fee they would have paid to the buyer’s agent is just used to reduce the purchase price. Pretty simple. All fees are negotiable.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I know it's been discussed to death, but couldn't find a comprehensive list of how to actually make an offer / close on a house if I'm self-representing. I might end up going with a rebate broker, but would at least like to understand all of the steps were I to self-represent. Here are the steps I understand so far along with questions on stuff I don't understand:
- Get pre-approved
- See house, either by: 1) open house; 2) contacting listing agent but pre-clearing with them that I'd be self representing and would want to put buyers agent commission towards closing. If neither of these are options, I have to go with a rebate agent?
- Pre inspect: need to see if the listing agent will open home for inspection; if not, presumably I need an agent, or have to forgo an inspection, correct?
- Make offer: work off of template from friends' offers or engage lawyer to draw it up. Get details from listing agent on how to submit? Include an stipulations on how buyer's agent commission is handled in this offer?
- Choose title company, lean on their attorneys for help with closing if offer accepted.
- Wire EMD to title company for escrow (or give them a check to hold for the seller in the EMD amount).

Am I missing anything? And for some of the steps (seeing house, pre-inspection), it seems like I need an agent if the seller's agent won't play nice, correct? I'll likely go with a rebate agent, or see if the seller's agent is amenable to take dual repping and taking 1% for herself, rebating me the rest. If it matters, we are buying in DC, will decide on the house we want without the help of a buyer's agent.

Thanks!

You're buying in DC, and think you have a chance without an agent?

Don’t listen to the fear mongers, I did this in DC not too long ago in a very competitive situation.

[Anonymous]

Fwiw as a seller, this would have been a red flag for me. We had 7 offers and I think someone being without an agent would have been comparable to an inspection contingency or creative financing in terms of which offer we picked. It might not matter, but for me it would have put you at a slight disadvantage. Hard to know if that would have balanced the 2% or whatever.

[Anonymous]

OP here: thanks for the advice. I fully understand the position of fear monger say say I'll be disadvantaged, or that I'm "not paying the buyers agent fee", those topics have been done to death here. I'm looking for the specific mechanics of how to make it work.

Per the above, the piece that still seems clear is inspection: am I correct that, if not using an agent, I need to rely on the goodwill of the seller's agent to open the home to an inspector or I need to waive it?

Again, we know the house we want to purchase, I'll ultimately feel out the seller's agent on whether they'll take our offer seriously. If not, we'll use a (cheap) buyers agent.
Or if it takes giving the seller's agent a cut (as suggested above), that's on the table too. Just trying to understand all the logistics were we to do it ourselves.

[Anonymous]

Anonymous wrote:Why would you go unrepresented as a buyer? It costs you nothing to have an agent, and you're clearly out of your league given the questions you're asking.

Yes, this!