Buying a house without a REALTOR® is possible in the United States. You do not generally need a REALTOR® or buyer's agent to search for a property, submit an offer, arrange inspections and financing, or close the purchase.
Without a buyer's agent, you may take on 10 separate tasks, from finding suitable properties to tracking closing deadlines. The NAR practice changes discussed below should be checked against the rules in effect on ****.
A buyer's agent can still be useful for first-time buyers, people purchasing in competitive markets and anyone who does not want to manage pricing, negotiations, contracts and deadlines alone. State laws and closing procedures vary. Some purchases also require or benefit from a real estate attorney, title company or escrow agent.
Buying a House With or Without a Realtor: At a Glance
| Question | Without a Buyer's Agent | With a Buyer's Agent |
|---|---|---|
| Can you view homes? | Yes, through open houses, sellers or listing agents | Yes, with your agent's assistance |
| Can you submit an offer? | Yes, directly or through the listing agent | Yes, your agent prepares and presents the offer |
| Who negotiates for you? | You | Your buyer's agent |
| Who explains local contracts and deadlines? | You, an attorney or the closing professional | Your agent, with legal advice where appropriate |
| Who represents your interests? | No buyer's agent unless you hire one | Your buyer's agent, subject to the agency agreement |
| Do you avoid every real estate fee? | No. Other transaction and closing costs still apply | Buyer-agent compensation is negotiable and may be paid by the buyer, seller or another agreed arrangement |
A REALTOR® is a real estate professional who belongs to the National Association of REALTORS® and follows its Code of Ethics. "Real estate agent" is the broader term. Not every real estate agent is a REALTOR®.
What Does a Buyer's Agent Do?
A buyer's agent helps manage the home search, offer process and transaction. That may include:
- Finding homes that fit your budget and requirements
- Arranging private showings
- Reviewing comparable sales and local market conditions
- Helping you decide how much to offer
- Writing and negotiating the purchase offer
- Tracking inspection, financing and appraisal deadlines
- Recommending inspectors, lenders and other service providers
- Communicating with the listing agent
- Reviewing contingencies, repair requests and other contract terms
The agent does not replace the other professionals involved in the purchase. A home inspector evaluates the property's condition, a lender handles mortgage underwriting, and a title or settlement professional manages the ownership transfer and closing process. Depending on the state, an attorney may also be required or advisable.
What Happens If You Buy Without a Realtor?
You can buy a house without a buyer's agent, but you take responsibility for work the agent would normally coordinate.
You will need to:
- Find suitable properties.
- Research comparable sales and the local market.
- Contact the seller or listing agent.
- Decide on your offer price and terms.
- Submit an offer using the correct state or local forms.
- Negotiate the price, contingencies, repairs and closing date.
- Schedule a professional inspection.
- Meet your lender's financing and appraisal requirements.
- Review title, insurance and closing documents.
- Track every deadline through closing.
The Consumer Financial Protection Bureau recommends getting a home inspection and shopping for homeowner's insurance, title insurance and closing services after an offer is accepted.
The difficult part is usually protecting yourself during negotiations and contract execution. A missed contingency deadline, unclear repair provision or misunderstanding about who pays a cost can lead to financial or legal problems.
The Listing Agent Does Not Automatically Represent You
The listing agent generally represents the seller, not you.
That agent may market the property, present offers and help the seller negotiate favorable terms. State law may require the agent to treat you fairly, but that is different from owing you undivided loyalty as your buyer representative. HUD advises buyers to understand whether a broker represents the seller, the buyer or both.
Some states allow dual agency or other forms of limited representation. The rules and disclosures vary by state. An agent who answers your questions is not automatically acting as your advocate.
When Buying Without an Agent May Make Sense
Buying without a buyer's agent may be reasonable when:
- You have bought several homes before.
- You understand purchase contracts and contingencies.
- You are comfortable researching comparable sales.
- You have time to manage inspections, lenders and deadlines.
- You are buying directly from someone you know.
- You are purchasing a straightforward new-construction property and understand the builder's contract.
- You have an independent real estate attorney reviewing the documents.
- You are comfortable negotiating directly with the seller or listing agent.
A cash purchase removes mortgage underwriting, but it does not remove the need for title research, inspections, contract review or careful closing coordination.
When Hiring a Buyer's Agent Is Usually the Better Choice
Hiring a buyer's agent is usually the better choice when:
- This is your first home purchase.
- You are buying in a competitive market.
- You are unfamiliar with local prices and neighborhoods.
- You are relocating from another city or state.
- The property is older, unusual or likely to need significant repairs.
- You are buying a condominium, co-op, multi-unit property or rural property.
- You expect difficult negotiations with the seller.
- You have limited time to manage the transaction.
- You are uncomfortable reviewing contracts and deadlines.
The main value is pricing analysis, negotiation, transaction coordination and help spotting problems before they become expensive.
Do You Have to Pay the Buyer's Agent?
You may have to pay the buyer's agent, depending on your written agreement and the arrangement with the seller.
Under current NAR practice changes, many MLS-participating professionals require a written buyer agreement before touring a home with a buyer. The agreement must describe the services provided and the compensation arrangement. Compensation is negotiable and may take the form of a percentage, flat fee, hourly fee or $0, depending on the agreement and state law.
A seller may pay some or all of the buyer-agent compensation. You may also request seller-paid compensation as part of your offer. If the seller does not pay the agreed amount, your buyer agreement may make you responsible for the difference or the full fee.
Before signing a buyer agreement, confirm:
- How much the agent will be paid
- Who is responsible for paying
- What services are included
- How long the agreement lasts
- Whether the agreement is exclusive
- How you can terminate it
- Whether a post-termination or "carryover" period applies
You generally do not need a buyer agreement to attend an open house on your own or ask an agent about their services.
What Professionals Do You Still Need Without a Realtor?
Even without a buyer's agent, you may need several other professionals:
- Mortgage lender: Provides financing and manages underwriting.
- Home inspector: Evaluates the property's physical condition.
- Appraiser: Estimates market value for the lender.
- Title company or title attorney: Searches ownership records and identifies title problems.
- Settlement or escrow agent: Handles documents, funds and the transfer of ownership.
- Real estate attorney: Reviews contracts or conducts the closing where required or where you want independent legal advice.
- Insurance provider: Arranges homeowner's insurance and, where relevant, flood or other specialty coverage.
The CFPB states that the closing professional may be a settlement agent, escrow agent or closing attorney, depending on the location. Some states require an attorney at closing, while others do not.
The Bottom Line
Choose the agent-free route only if you can handle the research, negotiations, paperwork and deadlines, or if you have an attorney and other professionals covering the areas you do not know well.
A buyer's agent is more useful when the purchase involves an unfamiliar market, complex property, difficult negotiation or tight schedule. Whichever route you choose, put the services, compensation and responsibilities in writing before moving forward.