Can I Buy or Sell a Home Without a Real Estate Agent

Today’s real estate market is one of the fastest-moving in recent memory. With record-low inventory in many market segments, we’re seeing multiple offers—and sometimes even bidding wars—for homes in the most sought-after neighborhoods. This has led some sellers to question the need for an agent. After all, why spend money on a listing agent when it seems that you can stick a For Sale sign in the yard then watch a line form around the block?

Some buyers may also believe they’d be better off purchasing a property without an agent. For those seeking a competitive edge, proceeding without a buyer’s agent may seem like a good way to stand out from the competition—and maybe even score a discount. Since the seller pays the buyer agent’s commission, wouldn’t a do-it-yourself purchase sweeten the offer?

We all like to save money. However, when it comes to your largest financial asset, forgoing professional representation may not always be in your best interest. 

Here are 5 potential disasters that can happen when you don’t hire an experienced, qualified Realtor…

…WHEN SELLING YOUR HOME:

POTENTIAL DISASTER #1: You could lose a lot — and I mean A LOT of money.

A report from the National Association of Realtors (NAR) shows that FSBOs (For Sale By Owner) sell for 10%-24% LESS than homes sold by agents. If we were to calculate that based on the current Scottsdale average price of $760,000 — that’s a potential $76,000-$182,400 loss!

POTENTIAL DISASTER #2: You will be doing ALL THE WORK yourself.

Without the services of a real estate professional, it will be up to you to get people in the door. You’ll need to gather information for the online listing and put together the kind of marketing that today’s buyers expect to see. This includes bringing in a professional photographer, writing the listing description, and designing marketing collateral like flyers and mailers—or hiring a writer and graphic designer to do so.

Once someone is interested, you’ll need to offer virtual showings and develop a COVID safety protocol. You’ll then need to schedule an in-person showing (or in some cases, two or three) for each potential buyer. In addition, you’ll be on your own when evaluating offers and determining their financial viability. You’ll need to thoroughly understand all legal contracts and contingencies and discuss terms, including those regarding the home inspection and closing process. 

POTENTIAL DISASTER #3: You may end up spending WAY MORE on top of doing all the work.

It may seem like you’re saving a lot of money because you won’t have to pay for the Realtor’s commission. However, experienced real estate agents have a network of vendors, whose services are necessary in real estate transactions, that offer special rates to the agent’s clients. Handling the transaction yourself, you will need to find appraisers, handymen, cleaners, etc., vet them to make sure they’re well-qualified, and pay the commercial rates out of your pocket. And, while you’re doing all of this work, it’s likely that you’ll still need to pay the buyer agent’s commission. So be sure to weigh your potential savings against the significant risk and effort involved.

…WHEN BUYING YOUR HOME:

A buyer’s agent is with you every step of the way through the home buying process. From finding the perfect home to submitting a winning offer to navigating the inspection and closing processes, most homebuyers find their expertise and guidance invaluable. Still, you may be considering negotiating your home purchase directly with the seller or listing agent, especially if you are accustomed to deal-making as part of your job. And if you are familiar with the neighborhood where you are searching, you may feel that there is no reason to get a buyer’s agent involved.

POTENTIAL DISASTER #4: You do all the work yourself, but you end up not winning from a sea of multiple offers.

Putting together a winning offer package can be challenging. This is especially true in a multiple-offer situation where you’ll be competing against buyers whose offers are carefully crafted to maximize their appeal. 

If you decide to forego an agent, you’ll have to write, submit, and negotiate a competitive offer all on your own. You’ll also need to schedule an inspection and negotiate repairs. You’ll be responsible for reviewing and preparing all necessary documents, and you will need to be in constant communication with the seller’s agent and your lender, inspector, appraiser, title company, and other related parties along the way.

POTENTIAL DISASTER #5: You might end up OVERPAYING for a property.

The home-buying process can get emotional. A trusted agent can help you avoid overpaying for a property or glossing over “red flags” in your inspection. In addition, buyer agents offer a streamlined, professional process that listing agents may be more likely to recommend to their clients. Buyers pay nothing out of pocket for expert representation that can help them avoid expensive mistakes all along the way from contract to closing - you’ll obtain fiduciary-level guidance on one of the most important financial transactions of your life.

SO, IS A REAL ESTATE AGENT RIGHT FOR YOU?

It is important for you to understand your options and think through your preferences when considering whether or not to work with a real estate professional. If you are experienced in real estate transactions and legal contracts, comfortable negotiating under high-stakes circumstances, and have plenty of extra time on your hands, you may find that an iBuyer or FSBO sale works for you. 

However, if, like most people, you value expert guidance and would like an experienced professional to manage the process, you will probably experience far more peace of mind and security in working with a real estate agent or broker. 

A real estate agent’s comprehensive suite of services and expert negotiation skills can benefit buyers and sellers financially, as well. On average, sellers who utilize an agent walk away with more money than those who choose the FSBO or iBuyer route. And buyers pay nothing out of pocket for expert representation that can help them avoid expensive mistakes all along the way from contract to closing.

According to NAR’s profile, the vast majority of buyers (91%) and sellers (89%) are thrilled with their real estate professional’s representation and would recommend them to others. That’s why, in terms of time, money, and expertise, most buyers and sellers find the assistance of a real estate agent essential and invaluable.

QUESTIONS ABOUT BUYING OR SELLING? WE HAVE ANSWERS

The best way to find out whether you need a real estate agent or broker is to speak with one. We’re here to help and to offer the insights you need to make better-informed decisions. Let’s talk about the value-added services we provide when we help you buy or sell in today’s competitive real estate landscape.

We at the Connie Colla Group at RETSY are a local Arizona business and we care about our community and are dedicated to bringing you the important news and information as it happens.  Please reach out to us anytime if you have questions about this story or about buying or selling your home here in the Valley.

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Jeff Hernandez, Esq., Realtor  | 602-550-1114 | Jeff@ConnieCollaGroup.com 

Connie Colla, Realtor  | 480-599-5058 | Connie@ConnieCollaGroup.com | ConnieCollaGroup.com 

The Connie Colla Group | RETSY | Forbes Global Properties