Can you buy a house without a real estate agent?

Technically you don’t need a real estate agent to buy a home, but it’s probably for the best. An experienced local Realtor has insight into your neighborhood and the housing market — and you won't have to shoulder the cost of agent fees as the homebuyer. In 2022, 86% of people used a Realtor to help them find and buy a home.¹

While it may not seem like it at first glance, buying a house without a Realtor by your side is a very real option. A real estate agent or a Realtor (a licensed real estate salesperson who belongs to the National Association of Realtors) provides you with a lot of support during the home buying process, but if you want to fly solo, you can. 

Do you need a real estate agent?

Legally, you aren’t required to work with a Realtor or real estate agent to buy a house. Finding and hiring an agent though can make the whole process go a lot more smoothly, but you don’t have to work with one, if you don’t want to. (Because many real estate agents are in fact Realtors, we will be using these terms interchangeably to explain what your options are as a buyer.)

Only 14% of homebuyers did not use an agent to buy their home in 2022 and all buyers who did found their agent to be a useful source of information. Even people buying new construction homes can benefit from using an agent; these licensed experienced professionals can help negotiate with the builder on your behalf.

There are a few select circumstances when you can forgo a realtor. If you plan to buy a house from a family member, friend, or neighbor, you may not need an agent as much as someone does in a normal sale when they're buying from a stranger. You may however want to hire an attorney or a transaction coordinator to make sure everything checks out legally.

Can you be your own real estate agent?

If you have a real estate license, it's perfectly legal to act as your own agent when you're buying (or selling) your own house.

If you aren’t a Realtor and decide not to work with one, here are a few important steps you'll need to handle on your own. 

• Negotiate with the listing agent: Most likely the seller of the home you want will choose to work with a listing agent. Instead of having your Realtor make an offer for you and negotiate on your behalf, you will do this yourself.
• Review closing disclosures with the mortgage lender: The closing disclosures will include key information about the terms of your mortgage and closing costs. Normally your agent would be able to help walk you through this information — regarding interest rates, payments, and closing costs — so pay close attention.
• Navigate the home inspection process: A home inspection can help you identify any issues with the house and negotiate seller concessions.

→ Here are 19 questions to ask when buying a house

Pros and cons of buying a house without a Realtor

Before you make a decision regarding whether or not you want to work with a real estate agent while you hunt for the perfect home, keep these advantages and disadvantages of doing so in mind.

Pros

• You won’t deal with a middleman: If you want to expedite a sale and work directly with the seller, cutting out the agent can make the communication process simpler. 
• You’ll learn something new: By being involved in every step of the process, you will gain a deeper understanding of the buying process, which can be helpful for future real estate transactions.
• You might save money: Because the seller won’t need to pay commission for your agent if you don't have one, you can try to negotiate a lower purchase price for the home. But on the otherhand… 

Cons

• You don’t have negotiation help: A confident and experienced Realtor can help you get the best deal possible and put in a competitive offer below the asking price based on their comparative market analysis. Without an agent you'll have to negotiate with the seller's agent on your own. 
• You may be overwhelmed. Buying a new home isn't easy and Realtors have a high level of expertise that usually makes the whole process run smoother. Not to mention, they take on a lot of the forms and paperwork to keep the process moving and make sure you have all of your ducks in a row. 
• You won’t have industry insight: Agents have access to the MLS, which lists a ton of information about homes for sale and as a normal consumer you can’t access that information. A good Realtor is familiar with neighborhoods in your area, what fair prices are, and what warning signs to look out for when you buy a home. 
• You could overpay for your home: Without an agent's insight on pricing, the seller or their agent might convince you to skip inspections or appraisals. You may even find you are stuck with a lot of pricey repairs once you move in.
• You could miss out on homes: Real estate agents may have access to off-market properties or homes that haven’t been listed yet that you wouldn’t be able to find otherwise. 
• You may spend more on lawyer fees. If you skip out on hiring an agent and things go awry, you may end up seeking legal advice from a real estate attorney, and the seller won’t cover the fees, so you'll have to pay out of pocket.

Should you buy a home without a real estate agent?

If you are very familiar with the homebuying process, have bought homes in the past, or are purchasing a home from a friend or family member, you may be able to navigate the process without hiring a Realtor. It’s important to negotiate a discount if you do make an offer without the help of agent. If the seller won’t budge on price, you’re better off bringing your own Realtor in to help you finalize the sale since you aren’t the one footing the bill.

But if you’re a first-time homebuyer, still house hunting, or buying in a competitive market, you may benefit from having an agent. A good Realtor can help you find a home that meets your budget and suits your specific needs. (If you need a home in a good school district with a mother-in-law's suite and double ovens for under $800,000, your agent will research all the comparable homes in your area to find the ones that meet your unique specifications.) 

Having an agent can save you a lot of time and stress, by helping you negotiate your offer to make sure you not only get the best deal financially and logistically, too. Because buyers don’t pay the realtor fees, money shouldn’t be the reason why you decide not to work with an agent when searching for a home. 

A home is likely the biggest purchase you will ever make, and more often than not using a real estate agent will better your odds of making the right moves during the process. Buying and selling a home at the same time? When you work with Orchard, you'll have a dedicated local agent who'll help you find a home that checks all the boxes. 

Related: Here are 19 question to ask when buying a house

Checklist for buying a house without a Realtor or agent

Buying a house is one of the biggest investments you'll ever make, so it's important to have a plan in place to ensure a smooth and successful process. If you're considering buying a house without a realtor, here's a checklist to help you get started:

• Determine your budget: Calculate how much you can afford to spend on a house, taking into account your income, debts, and expenses.
• Research neighborhoods: Look for areas that match your lifestyle and budget. Check crime rates, school ratings, and property values.
• Get pre-approved for a mortgage loan: Obtain a pre-approval letter from a lender to ensure you have the funds to purchase a home. This will also give you a better idea of the amount you can afford to spend.
• Look at listings: Check websites such as Zillow, Redfin, and Trulia to find houses for sale in your desired area. Make a list of potential homes to visit and contact the seller or the listing agent to arrange a time to view the properties.
• Evaluate homes carefully: You won’t have a professional to point out flaws here and there so you’ll need to be extra vigilant during a home tour. Pay close attention to the condition of the roof, appliances, and other important components of the home. 
• Request a seller’s disclosure: Once you’ve found a home that you like, it’s imperative that you ask the seller for this document since it outlines any known problems or issues with the property. This information can be used to negotiate the price or make a more informed decision about purchasing the home.
• Make an offer: Once you've chosen the perfect home, negotiate the price with the seller. You can even try to run your own real estate comps, to see if the house is worth the asking price.
• Get a home inspection: If you're serious about purchasing a particular property, hire a professional inspector to thoroughly examine the home and report on any issues.
• Hire an attorney: If you’re forgoing an agent, then it’s a good idea to at least consult with a real estate lawyer who can look over the paperwork. 
• Close the deal: Finalize the sale by signing a purchase agreement and closing documents, and don’t forget to do a final walkthrough.

Article sources:

1. National Association of Realtors: “2022 Profile of Home Buyers and Sellers.”