You can purchase a home directly from a seller, without bringing in a real estate agent. One of the main reasons to do this is the cost savings. Since no part of the purchase price will pay agent commissions for either the buyer or the seller, you may be able to negotiate a lower price on the home than you could otherwise. Here are some details on the process if you are considering it:
There Will Still Be Third-Party Fees
Unless you are paying cash for the entire value of the home, you and the seller will need to bring in a few third parties to finish off the transaction. This usually includes a title company and a real estate attorney. The title company fees are a normal part of the closing cost, so you can negotiate for whom pays these or split them between the both parties, just as you would an agent-represented transaction.
Attorney fees are generally much less than a real estate agent's commission. Their main job is to ensure that the all the details are correct on the paperwork, and to show up at closing to ensure nothing is missed. Since they don't put in the start-to-finish time of a real estate agent, their costs are less.
Problems aren't worse just because you aren't represented by an agent. Most issues that come up right before or during closing can be avoided. On your end, you can do the following to avoid last minute hiccups:
- Get a pre-approval, not a pre-qualification, from your lender. This better ensures that there will be no issues securing the loan.
- Make sure the home you choose is competitively priced compared to recent sales in the neighborhood. This ensures the appraisal goes well.
- Complete any lender-required work on the home and have the house reinspected before closing day.
Any further requirements usually occur because of problems with the title search or lender paperwork errors. This is where your attorney will step in. They will review title issues and make sure they are handled by the title company before anything proceeds. They are also there to catch anything that is off in the paperwork.
When selecting an attorney to work with, it's best to choose one that specializes in residential real estate and one that is local. This ensures they will know the common pitfalls and how to avoid them in your area. Although the attorney is primarily there for support during closing, they may also be able to advise you on other parts of the process, so it's a smart idea to retain their services early in the home buying process.
To learn more, contact a company like Iannello Anderson with any questions you have.