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How to buy your next home without a realtor?
Yes, it does make your life simple

By Peter Foss

You are probably skeptical right away that you can actually simplify your life by buying your next home without a realtor?  Isn't the realtor supposed to be the one who does all the work so that you simply show up and sign on the dotted line.  Yes, of course, but have you ever wondered what you could do with all that money (depending on the price of your home, it can run into tens of thousands of dollars)?  You could do so many other things that will make your life simpler and better.  In my case, I used the money to make a bigger down payment (which means smaller monthly mortgage payment due to the low interest rate that I got) and now I have more disposable income each month.  May not enough to buy a private jet, but enough to give me small luxuries.  (Related:  Should I refinance?)

Is it possible to buy your home without a realtor?

Yes, of course and it is not as much pain as you think.  Everyone who benefits from the existence of realtors (banks, lawyers, and realtors themselves) will tell you what a bad idea it is.  Remember that is how travel agents used to scare us that if we bought airline tickets without a travel agent there would be no one to help us if we got into any trouble.  Travel agents are now an endangered species and most realtors will disappear in a couple of years.  (Related:  How to survive falling property prices)

How to buy a home without a realtor?

  • Do your research.  If you are totally new and if this is going to be your first home, then you will need to work a bit harder.  I bought my first home in 2001 and basically I surfed the Internet to learn more about buying a home.  Since 2001, the Internet has a lot more help and you should take your time to do your research.  I did not spend a single penny on buying a book or a guide or visiting any websites that required me to pay.  The best quality information is available on the websites of banks (after all they want you for mortgages), personal finance websites, lifestyle websites (like MYNIPPON), and believe it or not, the websites of the realtors themselves.  So visit as many websites as you can, read thoroughly, take notes, and keep researching till all your questions are answered.
  • Talk to friends and family members and ask for help from those that have bought a house.  (Related:  Home inspection checklist)
  • Develop a checklist of what you need to do and when (this will vary for each person so it is best to have your own list).  
  • Don't sign anywhere without reading it first.  If you don't understand something and need time to read it again, tell them that you need to bring the papers home with you and you will sign them later.  Ask the person who is making you sign it to explain if you don't understand something or have a question.  If that person is unable to do so, ask for a person who will be able to answer a question to your satisfaction.  A lot of the documents are fairly standard and other than add personal information, there is nothing else that is changed any way.  (Related:  How to avoid foreclosure)
  • At the time of closing, you don't need your own lawyer.  The mortgage bank will definitely have a lawyer and there is no reason for you to worry that your bank will try to screw you, particularly if you have a mortgage with a respectable bank.  If you are still worried and think that you need some legal advice, don't hire an attorney for the whole thing (as a local lawyer will try to do).  Instead, just find a lawyer on a website like Lawyers.com and pay by the hour for whatever issues you have.  That way you can get a lot done in one hour of a lawyer's time (which will cost you less than $100) versus hiring a lawyer for the whole thing, which can cost you several hundred dollars.
  • If you still need unbiased and fair advice, you must call your state/city/county offices.  It is their job to help you and point you in the right direction.  Ask as many questions you need answered, be persistent, and ask to speak to a supervisor if someone gives you a hard time.
  • Finally, don't waste the money you will save.  Treat yourself to something nice and save the rest for a better lifestyle.

Recommended links:  Home improvement and remodeling  Buying a car at employee discount

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