How to Buy a House Without a REALTOR®: Your Step-by-Step Guide

If you’re thinking about purchasing a home, you can enlist a real estate agent or REALTOR® to guide you through the process, or you can go it alone. According to the National Association of REALTORS® (NAR), 14% of buyers purchased a home without an agent last year.

Deciding not to use a licensed real estate agent gives you complete control over the homebuying process and can save you money on commission fees. But some real estate transactions can be complicated, especially if you have limited experience.

Before buying a house without an agent, weigh your options and the pros and cons of each carefully.

When should you buy a house without a real estate agent?

Working with a real estate agent can help make the entire homebuying process easier. An agent can help you from the initial home search to negotiations to simplifying legal documents to closing.

But not everyone feels the need to work with a real estate agent. In some cases, you might do just as well handling the process yourself.

“Buying a house without a realtor can work in specific scenarios, like when you're purchasing from someone you know, such as a family member, or if you’re experienced with real estate transactions and confident navigating the process,” says Brett Johnson, a licensed Colorado real estate agent and owner of New Era Home Buyers. “However, it’s important to know what you’re stepping into.”

Here are two instances where you might consider buying a house without an agent:

• You’re buying a for sale by owner (FSBO) property that doesn’t require a complex transaction.
• You’ve purchased property before and are familiar with the process.

“Homebuyers with some previous experience are perfectly capable of buying a home without a real estate agent,” says Robert Washington, Founder and Broker at Savvy Buyers Realty. “First-time homebuyers should exercise caution when attempting to buy a home without an agent.”

Steps to buying a house without a real estate agent

Here’s a step-by-step process of buying a home without a REALTOR® or other agent:

1. Determine your homebuying budget: Aim for homes that cost no more than two or three times your gross household income. If your household earns $150,000 a year, your home purchase budget would be $300,000 to $450,000. This depends on your other financial obligations and goals, however.
2. Shop around for mortgage lenders: Interest rates, terms, loan types, and eligibility criteria vary by lender. Compare options from multiple lenders and narrow down your list.
3. Get pre-approved with several lenders: Pre-approval gives you a better idea of what you may qualify for, while showing sellers you’re a serious buyer. Applying for pre-approval involves a hard credit check that can lower your credit score, typically by a few points. 
4. Research the local real estate market: With your budget in mind, start the house hunt. Review listings in your desired neighborhoods on homebuying platforms like Zillow or Realtor.com. You can also look into new construction developers in the area.
5. Review the seller’s disclosure: This is a real estate document that lists any known issues about the home’s condition, defects, or other issues that could hurt the value of the home. This may include structural issues, the presence of harmful chemicals or materials (like radon, soil toxins, lead paint, or asbestos), and mold or water damage.
6. Hire a real estate attorney: You may want to find an attorney to guide you through legal issues or look over complex documents.
7. Put in an offer: If everything looks good, make your initial offer. Be sure to compare the values of similar homes in the area to get a better idea of a fair price.
8. Order an appraisal: An appraisal determines the value of the property. Most home lenders require an appraisal to be completed before they’ll approve a loan.
9. Get a home inspection done: You may also want to hire a third-party inspector to assess the home for any defects or recommendations. The home inspection process is primarily visual, so keep that in mind.
10. Negotiate with the seller: Based on the home inspection report and appraisal results, you can begin negotiating with the seller on necessary repairs or the final sales price. If they refuse or you can’t come to an agreement, you can back out of the sale.
11. Formally apply for financing: Unless you’re paying in cash, you’ll need to apply for a home loan. You can request several mortgage quotes before applying for a loan. Comparing at least four quotes could save you about $600 to $1,200 per year.
12. Close on your home: A few days before closing, you’ll receive several documents, including the final closing disclosure. Review everything for accuracy, then head to the scheduled closing meeting. Be prepared to show a government-issued ID and sign the final documents before receiving the keys. You’ll also need to pay any upfront costs — like a down payment and closing fees — prior to closing on the home.

Pros and cons of buying a home without an agent

Here are the main advantages to buying a house without an agent:

• You’ll save money on fees: Both the buyer’s and seller’s real estate agents charge commission fees. These are usually 5% to 6% of the home sale price, split between both agents. This means you could save up to 3% by forgoing a buying agent.
• You’ll have more control over the process: An agent acts as a middle-man between you and the seller. Without one, you can communicate and negotiate with the seller directly, which could save you some time.
• You’ll learn as you go: Since you’re on your own, you’re more likely to learn more about the homebuying process than you thought possible. This can be useful if you plan to buy property again in the future.
• The process could be quicker: If you’re purchasing an FSBO home, meaning the seller also doesn’t have an agent, the transaction could be quicker. In fact, the National Association of REALTORS® found that FSBO homes sold in a median of one week, compared to three weeks for homes sold via an agent.

“The biggest benefit of using a REALTOR® is the ability to utilize their knowledge and expertise. Every transaction is their own beast and odds are that an experienced agent has dealt with any issues that may arise in the homebuying process,” says Washington.

Going through homebuying alone has a few drawbacks as well, including:

• The process can be lengthy: Buying a home is often a complicated process with many legal and financial documents and real estate jargon to sift through. If you’re not prepared, you could spend a lot more time on research and negotiations than you expected.
• You may have trouble negotiating a fair price: Negotiating without a REALTOR® can be tricky. An agent will typically do a comparative real estate market analysis to ensure you’re putting in a fair offer. Without their expertise, you could end up paying too much.
• You may have limited home options: Only brokers and licensed real estate agents have access to the multiple listing service (MLS), which gives them access to a large pool of property listings. Without one, you’ll be limited to third-party platforms and their listings.

“You’ll need to handle the intricate details, like paperwork, inspections, and navigating local real estate laws, which can be overwhelming,” said Johnson. “In my experience, buyers who skip hiring a realtor often underestimate the time and expertise required to avoid costly mistakes.”

Take some time to consider your options and whether using an agent is the best option for you.

Key professionals you’ll need without an agent

Even if you decide to buy a house without an agent, you may want to enlist the help of a few other professionals, including:

• Home inspector: A third-party inspector could find defects or other serious issues with the house, like an old roof that should be replaced. This can save you money down the line.
• Real estate appraiser: The appraiser will evaluate the property to determine its fair market value. Mortgage lenders typically require an appraisal, but knowing the home’s assessed value can also help you during negotiations.

It might also be a good idea to have a real estate attorney for your home purchase. An experienced attorney can review the purchase agreement and any other legal documents to ensure you’re making an informed decision.

Other professionals typically involved with residential real estate transactions include:

• Closing representative
• Mortgage lender or servicer
• Loan officer
• Loan processor
• Loan underwriter

Tips for negotiating without a realtor

Negotiating without a realtor is crucial to ensuring you’re getting a good deal. The process can take time, but don’t try to rush. You’ll want to get a fair price and finalize any issues or repairs before committing to anything.

“For negotiations, research is your best tool,” Johnson says. “Start with a comparative market analysis (CMA) to understand fair market value.”

Also, take some time to understand the seller’s motivations.

“I’ve successfully negotiated deals by identifying sellers’ motivations — if they’re moving for a job, for example, they might prioritize a fast closing over the highest price,” Johnson says. “Asking strategic questions like ‘Why are you selling?’ can reveal opportunities to craft an offer that benefits both parties.”

Last but not least, try to stay objective and work with the seller to ensure you’re both walking away satisfied.

“Sellers are often concerned about timing and being amenable to their schedule can really help a buyer get a leg up in any negotiation,” Washington says. “Buyers should keep their emotions in check during the negotiation process. Sometimes negotiations feel like a battle and people walk away from deals due to issues that end up being petty and irrelevant.”