Author Topic: How to buy a house without a Realtor  (Read 3263 times)

Mirwen

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How to buy a house without a Realtor
« on: June 09, 2015, 09:27:18 PM »
I'm considering buying a house from my mother.  I don't want to pay a broker fee for a deal like this.  Explain like I'm 5 step-by-step how to handle the transfer.  House, Mom and I are in Nevada.

iamlindoro

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Re: How to buy a house without a Realtor
« Reply #1 on: June 09, 2015, 09:35:00 PM »
At it's simplest, you fill out and sign a purchase agreement, then enlist a title company to help you close.  Here is a Nevada purchase agreement I found online.  I did not review it for legality or accuracy, other than to glance at it and see that it seems fairly standard:

http://reno-reic.com/extras/Purchase%20agreement.pdf

In an all-cash transaction, you'd take the contract to a title company and they would guide you through getting the funds transferred.  This would be the simplest scenario, and one you could accomplish in days or a week.

If you aim to finance the home, it gets more complicated.  You would apply for the loan through your lender, sharing with them the contract and any other information they require, and they would guide you through their process.  This would include the vetting of your finances, as well as an appraisal of the property for value, and probably an inspection.  In the end, you still end up back at the title company for the closing, but there are three parties involved-- you, the lender, and the seller (your mom).

Basically you can lean on either the title company or the lender to help guide you through their requirements.  The only thing you have to do together with the buyer to cut out an agent is sign a contract.

Mirwen

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Re: How to buy a house without a Realtor
« Reply #2 on: June 09, 2015, 09:48:53 PM »
Thank you, that's very helpful.  So the title company and the ones that handle the escrow are the same people?  I just pick a title company and let them guide me.  That seems simple enough.

iamlindoro

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Re: How to buy a house without a Realtor
« Reply #3 on: June 09, 2015, 09:56:23 PM »
Generally, yes.  The title company receives and holds the title to the property until the terms of the contract are fulfilled (namely, the transfer of funds).  The title companies I have worked with have all been escrow agents as well, though I know it's possible for them to be two separate entities-- I just don't have any experience with that.

SUP

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Re: How to buy a house without a Realtor
« Reply #4 on: June 10, 2015, 06:10:00 AM »
The title company should have a good purchase agreement for your state as well. And a good one will even help you fill it out if needed. Very good place to start. I have done purchases and even lease options with payments etc. all through a title company.

Good Luck. After you do this with the title company, see all that they will do, and see how little it costs compared to a realtor, you will wonder why realtors get such a big chunk.

The_path_less_taken

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Re: How to buy a house without a Realtor
« Reply #5 on: June 10, 2015, 07:54:13 AM »
I'm glad this was a family thing.

I sold a house in Oregon to a guy who'd inspected it with my realtor months earlier, but waited until the day my contract with her ended to put in the offer. I intended to re-up with her, but was out of state and missed the date.

I told him I would only sell to him thru the realtor...he blew a gasket and sat on the deal 5 months but finally agreed.

If they do all the work of listing/signs/advertising/showing they should get the commission.

But if you've done all the work and found a house on your own...then by all means go without a realtor because the commission can add up.


lucy16076

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Re: How to buy a house without a Realtor
« Reply #6 on: June 14, 2015, 09:46:50 AM »
I am posting for the Canadians out there that watch this post...it seems the same both sides of the border. I bought my home privately just about 18 months ago & it was super simple.  The seller took from a friend of his, the realtor paperwork, whited out the company logo/name, & we used that.  He filled it all in & I took my copies to my lawyer to process.  Voila! The process was easy, & because there is no way of getting around using a lawyer, I leaned on him for any advice or questions I had.  The seller took the signed papers to his lawyer, & the rest was history.  No glitches, just a couple thousand dollars to the lawyer & the house was mine.
Now for my most recent purchase I did use a real estate agent to buy because it was a friend of a friend just getting started, and I'm not sure if it's the same state side, but the buyer never pays the real estate agent. The seller pays that percentage fee to both agents.  So, I did her a favor by earning her a commission & she took care of all the contacting/negotiations/paperwork for me, with no money spent from my pocket.  Again, the lawyers bill was my only expense.
Hope this helps clear up any thoughts for us Canadians. I know that there are a lot of us on here following MMM, but our posts a few & far between.  I wouldn't hesitate to buy/sell a home privately again, as it truly is not that difficult as long as you do your homework & have a good lawyer!
Cheers eh!