Is it a good idea to buy property without a real estate agent?

[laura888]

I'm wondering if anyone has experience with this?

I am considering bypassing an agent because I know the person selling me the house.

My landlord is selling me the house I've been renting for over 2 years.

I've researched prices of comparable houses in my area and I'm certain she is giving me a good deal.

She lives out-of-state and is trying to get the property off her hands.

thanks for any wisdom.

[seaglass]

1. We didn't use one though we did get a lawyer for the closing.

And we did all the other things you are required to do for the mortage, the title search, home inspection etc. We had looked at a number of houses through an agent so we felt comfortable that this house was fairly priced.

I don't see the point of an agent in this transaction - they didn't find the property for you and they didn't sell the property for the landlord. Why pay an unnecessary fee?

[Maineiac]

2. I agree with that an agent is not necessary, but an attorney experienced in real estate law is

It keeps things simple and protects both the buyer and seller.

[hippiechick]

3. ... as long as you have an inspection and an appraisal ...

... beforehand, and the option of the current owner supplying a home warranty as part of the purchase, I'd think you should be ok.

I work part time at a real-estate agency and for the life of me can't figure out why people can't just see and buy the houses they're interested in without 'professional help'.

[BlackVelvet04]

5. The appraisal will probably be required by the

lender won't it? I agree about the appraisal and the inspection.

[ScreamingMeemie]

7. One can order an appraisal before the purchase agreement.

A new order can be placed by the lender with that same appraiser. I will do this often. As long as the lender and borrower realize it is a new order. It is not a new full fee.

[hippiechick]

10. I'm pretty sure it is ...

:hi: Good luck with whatever decision you make!!

[BlackVelvet04]

4. I agree that an agent

isn't necessary but a lawyer is.

Have you had a home inspection done? If not PLEASE DO! It will cost you somewhere around $350 but could save you thousands! Even if you think the house is fine you never really know without that inspection.

I also recommend you get a Home Buyers Warranty. Cost is about $300 a year and it covers appliances, etc. It's well worth it. The first year we had it we had our heat pump replaced for $60.

[ScreamingMeemie]

6. I would use both an appraiser and a lawyer, just for piece of mind.

You can research prices of comparable homes and still be way off, and lose a lot of money. I might be biased, but I've been proven correct in at least 10 deals. Appraisers will research what is happening in the market. good luck. :hi:

[Raven]

8. Right on MrsG. And a home inspector...

Even if you've been living there, get a home inspection!

[davsand]

9. Real Estate agents are optional, sometimes even a problem.

I would not worry bit about not using an agent for this. You have a positive (I'm assuming!) relationship with the seller because she's been your landlord for a while now--I doubt you really need an agent to work as an intermediary. That is the only real benefit an agent provides, in my opinion.

I sure as heck would never trust a real estate agent to be the only one to establish a value on a property (even tho many people do) because I am biased toward professional appraisers (as are lenders!) Real estate agents are not trained in appraisal work and I have seen any number of "reports" generated by real estate agents that are not worth the paper they are printed on if you are trying to establish an accurate estimate of market value.


I would strongly urge you to do two things if you want to buy this house:

First get an appraisal.

Second, hire a real estate attorney.

Just my two cents.



Laura

Added on edit: I see that Mrs G has already told you the same thing I just did. Looks like we cross posted!

[ScreamingMeemie]

11. It's always awesome when two appraisers agree.

:hi:

the other Laura

[davsand]

12. Same house, two appraisers, 30K difference in value.

One was for a re-fi the other was for a divorce settlement. I bet you can guess which one was lower.

Funny how that goes... :think:


Good thing we all know they are only an "opinion of value" isn't it?

:evilgrin:


Laura

[Katina]

13. agent isn't necessary. Has the owner signed with an agent?

if so, that could cause some problems. The owner can sign with an agent but list you as an exception, meaning that he/she could sell directly to you without the agent being involved at all. Make sure that he/she hasn't signed or that he/she has exempted you on the realtor contract.

[laura888]

14. Thanks to all who posted!

Your knowledge/advice is invaluable!