Do I Need a REALTOR® to Buy a House?

Your first step is to find the right REALTOR^® for your situation. You’ll want to identify one that’s a licensed member of the National Association of REALTORS^® (NAR). Ideally, you’ll also want a local REALTOR^® who has knowledge of the market in the area. 

Don’t be afraid to interview a few potential REALTORS^® to find an agent that aligns with your unique needs or buying strategy. For example, ask potential REALTORS^® about their approach to finding an ideal home and select an agent that prioritizes your needs. 

You can start searching for properties before you have a REALTOR^®. This may help you narrow down your neighborhood preferences. Many REALTORS^® have access to tools such as a multiple listing service that can expand your housing options to comparable homes. 

Some selling agents will host “open houses” to give you a closer look at the property. You can attend these events without a REALTOR^®. However, it’s best to have an agent secured to help you later negotiate with the seller’s agent. 

Your REALTOR^® may also be able to arrange a scheduled viewing of the property. This will give you a better idea of the property. 

REALTORS^® can be particularly helpful in the process of making an offer. Local REALTORS^® will have a clear understanding of the fair market value of a property. They can help you determine an offer that’s fair to both parties. REALTORS^® can help you create an offer, including the price of the home and any earnest money you might use to secure your purchase. 

Your REALTOR^® can also help you in negotiating a final purchase price. This can include contingencies in the offer itself, requiring sellers to make updates or repairs before closing. 

Once you accept the offer, your REALTOR^® can guide you through the closing process. This includes scheduling a home inspection and an appraisal to ensure your mortgage approval. 

The REALTOR^® helps with paperwork for a proper sale. They’ll also guide you through the closing documents, explaining the fees required. 

Before you start looking for an actual home, conduct careful research to learn as much as you can about your local real estate market. What is the fair market value for a home in your area? What is the average cost per square foot? Is it a buyer’s or seller’s market? 

Answering these questions can help you set a budget for what you want to spend on your home. This includes determining how much you have to put toward a down payment and your total loan amount. Always remember to leave some money in the bank to cover closing costs or any upgrades you plan to make. 

Once you set a budget, you’re ready to begin searching for a house that aligns with your needs. You can attend open houses or contact the seller’s listing agent to schedule a tour. 

Without a REALTOR^®, you’ll need extra care to ensure the property fits your needs. Ask for a seller’s disclosure, which will give you insight into any issues with the property, such as: 

• Structural issues 
• Mold or water damage 
• Problems with plumbing, heating, or electrical systems 
• History of damage from pests 
• The presence of lead paint, asbestos, or radon 
• Issues with the soil 

But be careful! Sellers must disclose only the issues they are legally required to and can choose not to disclose other information. Make sure to ask pointed, direct questions about the above topics. Most states require that sellers give an honest answer when asked direct questions. 

If you’re satisfied with the home’s condition, you can make an offer letter. Your offer letter should include: 

• The property’s full address 
• Your full legal name 
• The names of anyone buying the property with you 
• The amount of your offer 
• Any contingencies, such as a home inspection or repair 
• Any items you want included in the sale price, such as appliances 
• Seller concessions you’re requesting, such as discount points or cash for closing 
• A copy of your mortgage pre-approval letter 
• The date you want to close 
• The date you expect to move in 
• A deadline to accept or decline your offer 

Remember, you’ll be sending your letter to the seller’s agent unless the home is “for sale by owner” (FSBO). 

Your mortgage lender will require a home appraisal to ensure the sale price matches the mortgage amount. Lenders don’t always require an inspection. However, this can reveal issues that even the seller wasn’t aware of. This can include issues with the structure, plumbing, or utilities. 

Depending on your state, you may need a real estate attorney to complete the sale and transfer your title. If you’re not using a REALTOR^®, an attorney can help you deal with the paperwork and ensure you comply with all regulatory issues. 

Once you and the seller agree on a sale price, you can close on the loan. Your lender will send you a Closing Disclosure that outlines your loan terms, interest rates, closing costs, and more. 

Your next step will be to contact your lender to schedule your closing. You’ll pay your closing costs at this time and become a homeowner once you sign your paperwork.