It took almost 2 years to do it, but she figured it out and bought her first home without an agent.

88% of buyers use an agent. This buyer was one of the 12%

Why?

Personally, I wouldn't have done it this way. But here's her reasoning:

• On principle, she felt agents are overpaid for opening doors
• She felt like she could negotiate terms on her own
• She didn't want the salesy aspect that comes with agents, persuading her to buy a home that she didn't actually want
• She didn't want to waste anyone's time. She had a very specific radius with a very specific list of requirements for the house. Not many houses would show up that fit that criteria, and it could take a very long time to find it. (and it did take a long time)

I helped her on the mortgage side, but let her know how the process typically works, not as legal counsel, but in general, start to finish how it usually works and the role agents play.

I have some thoughts on what I would've done differently if I were her, and I'll get into those.

But here's what she said worked for her going alone without an agent, and I'll cover each point:

• She gained a competitive advantage with the seller
• She saved thousands
• She didn't feel pressured

Here's what she said about disadvantages

• She was at a competitive disadvantage with the agents
• She couldn't see homes as easily
• It took her a long time
• She could have gotten into a bad contract without realizing it

Here's what I think she could've done differently

• Use a real estate attorney

Here's each point in more detail:

She gained a competitive advantage with the seller

This one makes sense from a seller's perspective.

No agent, no agent commission. On a $600,000 purchase, that's $15,000 - $18,000 saved in costs you don't have to spend, that you were probably expecting to spend.

She saved thousands

This one sounds hypothetical to me.

She saved thousands from a hypothetical scenario.

Because the seller was saving thousands on realtor fees, she felt bold enough to ask for thousands in closing costs.

Again, this is all hypothetical. It's possible that a really good agent could've seen that the home was priced too high, and could have gotten a much lower purchase price.

Or the agent could have negotiated a lot of seller concessions toward closing costs, possibly more than she negotiated, on top of paying an agent commission.

Nobody knows how it could've played out.

But I'll give her this: the area was very desirable, and her price range was very competitive for buyers.

If the goal was getting the house AND get closing costs paid for in a competitive market, one would have an easier time negotiating that without the added buyer agent commission.

She had to negotiate a little

There were two things she had to negotiate:

• How much the seller paid in closing costs
• The cost for a roof replacement

At first she asked for almost 2% in closing costs ($12,000), which the seller did a counteroffer for $9,000

She accepted.

After an inspection, it was discovered that the roof needed to be replaced 2 years ago.

The cost for the roof replacement: $14,000

Here's how she went about the roof replacement.

She had a very specific loan amount that she was aiming for, and paid the rest as a down payment.

Rather than ask the seller to replace the roof before moving in, she just asked for a $14,000 reduction in purchase price.

By doing that, she kept the loan amount the exact same (her loan-to-value percentage increased, but stayed under 80% so she avoided MI) and the reduction in purchase price meant she would bring $14,000 less at closing. She saved that $14,000 to do the roof repair herself.

The seller was willing, and I believe they rationalized it, considering they still saved on not paying the buyer agent commission.

If they passed on the buyer, they'd still be aware that the roof needs to be replaced, and another inspector would come to the same conclusion.

She didn't feel pressured

She didn't want to hear the sales pitch on how great it is to live just outside of her preferred area.

She didn't want to hear sales pitches on how she didn't need a yard.

She didn't want to go out and see homes that didn't fit her criteria.

She didn't want someone who would treat her as a deal, rather than a cautious first time buyer.

Selecting a good real estate agent can be a gamble, and getting in a long term buyer-agent agreement with a bad agent can kill your motivation.

She was at a competitive disadvantage with agents

"It feels like a club, and I can't get in" -buyer

Here are thoughts she had while making offers and then getting ghosted:

• I'm not speaking the agent's language
• It's a system rigged against unrepresented buyers
• Selfish agents don't want me to set a trend
• It's a club, and I can't get in
• These agents aren't even passing my offer along to the seller
• If I could speak directly to the seller, it would be much easier

Most of these thoughts are just stories she put in her head without evidence. But there's one thought she had that helped her out:

"I'm not speaking the agent's language."

She used this thought, and adapted.

She received help from her father-in-law on how he went about buying a home without a realtor 30 years ago.

The problem: he paid cash... 30 years ago.

He wrote a letter of intent that looked something like this:

"I'd like to buy your home for $_ please"

I'm exaggerating, but only a little.

Her father in law is a smart and successful man, but he didn't speak the language, or use the same documents, that real estate agents use today.

Rather than make an offer on a home with a letter of intent, she switched to use the standard real estate purchase contract that the state provides as a template.

She studied that document, learned what each section meant, and used that to make offers.

She adapted, and sent in an offer that made sense to the agent. Not a letter of intent. She spoke the agent's language.

Here's where I would've done things differently

Get an attorney

Real estate attorneys will help you draft contracts and offers, and will walk you through why each section is important, and how to protect yourself.

This buyer could have written up a contract/offer that might have put her in a bad spot, or lost earnest money.

The part of making offers and writing contracts can be very risky to do on your own.

She couldn't see homes as easily

If her schedule didn't align with the seller's open house, she had an impossible time seeing the property.

She would call the listing agent, which the majority showed no interest in showing her the property unless they could represent her.

Most states require a buyer-agent agreement signed before a buyer can tour homes. You can't just pay an agent a fixed amount to help you see a home if you're in one of these states.

Again - "it feels like a club, and I can't get in"

Open houses were key for her. That and a little bit of luck allowed her to see the house she finally ended up purchasing.

Almost two years after initially speaking with me and getting pre-approved, she found the perfect home.

"I want this home so bad" she told me as soon as it listed.

She called the listing agent as soon as she was notified of the listing. She explained she was an unrepresented buyer that would like to see the home.

"I'm at the property now if you want to come over"

The listing agent is letting me see the property? Without asking or requiring to represent me?

So, she immediately went to see the home, loved it, and made the offer, working hard to speak the agent's same language and use the same paperwork.

She could have gotten into a bad contract without realizing it

"They'll accept, but they need flexibility on the move out date. They want a leaseback."

What's a leaseback?

She agreed. 4 weeks. Free of charge. No deposit.

I can already hear some people reading this and groaning.

Not a leaseback!

This puts the buyer into the position of being a temporary landlord. It opens up the possibilities of all of the negative outcomes landlords can face with bad tenants.

Specifically the eviction process.

If the sellers overstay their welcome, the buyer has to consider how to evict a tenant.

It ended well, and the sellers left earlier than the 4 weeks, and she's sitting in her house with a literal new roof over her head.

But without the right person guiding her, she could have easily missed something in the contract that could have put her in a bind.

From start to end

From memory, here's the timeline the buyer went through

Pre-approval

This part was easy. She left the meeting with a pre-approval letter and motivation.

Under Contract

After two years of waiting for the right house to hit the market, swinging and missing on a few offers, and losing most of her motivation, they finally went under contract.

Contract details

• She offered full asking price with 2% concessions.
• Seller countered with 1.5% concessions and a free 4 week leaseback.
• Counteroffer was accepted.
• Inspection was scheduled, roof needed replacement.
• Seller agreed to lower the purchase price by the amount needed to replace the roof.

The appraisal was waived due to a 20%+ down payment and enough market data for a Conventional Fannie Mae appraisal waiver.

The loan closed and ownership recorded in 2 weeks from the contract date.

The sellers moved out 2 weeks later.

Summary

This isn't a promo to say "everybody should buy a home without an agent" but I wrote it to help people think about what they should consider when deciding whether or not to use an agent.

I also wrote it to let people know it's possible.

Reach out if you need any help, you can DM.

I'm rooting for you

Sam