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How
to buy your next home without a realtor?
Yes,
it does make your life simple
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?)
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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)
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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
Should I abandon my house?
I bought my home without a realtor
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