Buying a home is a big decision that requires a lot of time and effort. There are so many things to consider before finalizing a house offer: mortgages, location, budgets, renovations, work opportunities, commutes and more. And then there’s one of the biggest questions: Can you buy a house without a realtor?
It’s a loaded question without a simple answer. Some people may feel comfortable handling the process of buying a home themselves. Others prefer to rely on the expertise of a real estate agent to negotiate the biggest purchase of their lives. If you’re on the fence, here are seven pros and cons of purchasing a home without a realtor.
Con: You’ll Need to Learn the Legalities
A lot of paperwork goes into buying a home, and realtors have ample experience navigating that paperwork. If you decide to buy a home without professional help, brush up on all the legalities before taking the real estate plunge. Otherwise, you could pay a lot of money to fix little mistakes, skip important clauses you might need in the long run, or make other common gaffs that realtors often save home buyers from making.
Pro: You Could Save Money
In Canada, sellers are on the hook for paying realtor fees for both sellers and buyers. So, if you’re only working with a realtor to purchase a home, you aren’t technically saving by going solo. The seller may be willing to give you a lower price on the house because they’re hypothetically saving the 2.5 per cent commission of your realtor, but that’s something you’d have to negotiate. That negotiation ability can be an empowering experience that may save you a few thousand dollars if you’re really good at it.
Related: Real Estate Agents Across Canada Share Their 2024 Predictions
Con: You Might Not Have the Same Market Knowledge
Experienced realtors can provide you with a complex look at the current market in your desired area. By doing their research, they beef up their negotiating power before putting in an offer and can help you secure the best price. If you buy a home without a realtor, you must research the market and determine the best strategy and arguments for your purchase price before putting in an offer.
Pro: Direct Communication
If you’re the type who likes to handle a sales negotiation by yourself or want a direct line to the sellers of a home, you may want to skip hiring a realtor. By taking charge of negotiations, you will have more flexibility to proceed the way you want, perhaps leading to a better purchase price.
Related: Becoming a Real Estate Agent: The Good, Bad and Ugly
Con: Limited Access to the Market
Another benefit of hiring a realtor to help you buy your dream home is that they typically have access to more resources than the general public. That’s because they pay for them. Realtors can access Multiple Listings Services (MLS) in various markets and see homes that come up for sale before they make the public sites. Additionally, realtors may have other connections in their network and can put early feelers out there with their contacts to help you find the home that best suits you.
Pro: It Can Be a Valuable Learning Experience
Buying a home is a lengthy process between market research, booking showings, navigating legal complexities, and meeting all criteria for a successful close. By not hiring a realtor, you’re taking all that on yourself, which can be an incredible learning opportunity. Ensure you have the time and can put in the effort before navigating the process solo. If you have any doubts, it may be time to turn to a pro.
Related: 10 Things to Know Before Purchasing an Investment Property in 2024
Con: You’ll Be Dealing With Your Emotions
If you’ve never purchased a home before, you might be surprised at what an emotional experience it is. Searching for a new home can be long, expensive, and tiring, triggering maxed-out feelings. On the flip side, selling a home is often an equally emotional experience for sellers. Having a neutral, third-party realtor to help navigate the process and take feelings out of it can be beneficial and lead to more level-headed decisions.
