How to buy a house without a real estate agent?
As a buyer, your goal is to buy a house that you love, that suits your needs and that you’ll pay a reasonable price for.
That hidden gem may be for sale with or without a real estate agent. It is therefore important to know the implications of buying with or without an agent.
What does it meant to buy a house without a real estate agent?
Buying a house without a real estate agent means that you will deal directly with the seller, rather than with a third party charged with the sale of the property.
The same legalities apply in both situations: transactions conducted without a real estate agent are the same as those conducted with an agent.
Why buy a house without a real estate agent?
According to a survey conducted by Extract Recherche Marketing, the majority of Quebecers agree that buying a home directly from the homeowner is more pleasant than buying with a real estate agent. In fact, the majority of those who bought their homes directly from the owner are VERY satisfied with the process and say they will deal directly with a homeowner in the future.
Whether you buy a house with or without a real estate agent can be a question of personal preference or of perceived advantages.
- Buying a house directly from the home seller can often simplify exchanges. The owner and the buyer are in direct contact and do not need to go through an intermediary for information, to schedule visits, negotiate or complete an offer to purchase.
- Without an intermediary, the buyer can get information about the house from the person who knows it best: the owner. No one is better qualified to describe it.
- Without a real estate agent, the transaction can happen at a pace set by both parties.
- By not engaging a real estate agent, certain costs can be avoided. When buyers want to work with an agent to purchase a property that is being sold directly by the home seller, the buyer must sign an agreement with the agent, thus ensuring the agent’s remuneration.
Does a house cost less when it is sold without a real estate agent?
Some people mistakenly believe that a house for sale without a real estate agent will be less expensive, seeing as the owner will not have any commission to pay. This is simply not the case.
The value of a property is influenced by its location, its size, its condition, its finishings and the state of the real estate market. The fact that a house is being sold with a real estate agent does not give it any additional value. How a home is sold has no effect on its value.
Are there risks involved in buying a house without an agent?
The legalities of purchasing a property are the same with or without a real estate agent. In fact, the presence of a real estate agent in the transaction:
- Does not protect the buyer from hidden defects;
- Is no substitute for home inspection conducted by a professional;
- Does not remove the only legal obligation of closing the transaction with a notary.
In addition, a real estate agent is not qualified to give legal advice since he or she is neither a notary nor a lawyer.
Whether you’re buying with or without an agent, the purchase of a property is an important transaction that should be undertaken with care and all proper precautions. The best protection is to be well informed. Keep reading to learn more about the home buying process.
What are the steps to follow to buy a house without a real estate agent?
The steps to buy a house remain the same whether you’re working with an agent or dealing directly with the home seller.
These steps are detailed throughout this section.
Are there more risks to make an offer on a house without a real estate agent?
A person certainly doesn’t make an offer to purchase every day, but that doesn’t mean that it’s particularly complicated or implies many risks, as some would have us believe.
Simplified and annotated documents and forms are available on DuProprio, and clearly explain the clauses of the offer to purchase.
Homeowners selling using DuProprio’s services have access to a legal assistance hotline where notaries answer any questions that may come up at this juncture.
A private notary can help a buyer complete an offer to purchase for about $250. To find a notary, visit the Chambre des notaires du Québec’s website.
You can find a list of notaries in your area on DuProprio.biz.
What precautions should be taken when purchasing a home without a real estate agent?
Buying a house without a real estate agent involves no more risk that not (see the previous section). However, purchasing real estate is an important transaction and certain precautions should be taken. Here are a few a buyer should keep in mind:
- Engage a qualified home inspector to check to the property’s condition before purchasing
- Pay the right price by checking comparables in the area or asking the opinion of a qualified appraiser.
- Seek the advice of a notary if legal questions come up during the process, or to check certain legal documents.
- Inform oneself on the steps to follow for a successful transaction
- Buying a house without a real estate agent is not more risky: the legal implications are the same.
- Whether buying through an intermediary or directly from the owner, the steps to follow remain the same.
- How the home is sold does not influence the property’s value
- With our without an agent, the purchase of a property is an important transaction that deserves to be conducted with care
- Buying without an agent implies several advantages (see above)