Representing Yourself in a Home Purchase: What to Know

You do not need a license to buy or sell your own home. Plenty of people handle a transaction themselves, especially when they already know the other party. Still, doing it yourself means taking on every task an agent normally handles, and it carries a few risks worth understanding first.

What You Take On

Without an agent, you become the researcher, negotiator and project manager. That typically includes:

• Studying recent sales to decide on a fair price.
• Writing or reviewing the purchase contract and understanding each contingency.
• Negotiating price, repairs and credits directly with the other side.
• Tracking deadlines for inspections, appraisal, financing and closing.
• Coordinating with the title company, inspector and lender.

Many people who go this route hire a real estate attorney to review documents. That can be a smart middle ground.

If You Hold a License Yourself

Licensed agents can represent themselves, but they usually must disclose their license to the other party. Things get more complicated if the agent also has a relationship with the person on the other side of the deal, such as a past client or someone in their professional network. Situations like that can involve dual agency rules, which generally require written consent from everyone involved.

Even with proper disclosures, a deal between people with existing ties can lead to disputes if something goes wrong later. Legal costs and damage to a professional reputation are real possibilities. For that reason, some licensed agents choose to steer clear of transactions involving their own contacts, or they bring in a colleague to represent them.

Is It Worth It?

Representing yourself can make sense if you are experienced, comfortable with contracts and have time to manage the details. For most buyers, especially first-timers, the guidance of a professional is worth it. A good agent helps you avoid costly mistakes and frees you to focus on finding the right home.

Be honest with yourself about the time involved, too. A purchase can take several weeks from accepted offer to closing, and many steps happen during business hours. If your schedule is already full, juggling calls with inspectors, title staff and the other party can become stressful quickly. Weigh any savings against the value of your time and the cost of a misstep, such as missing a contingency deadline that protects your deposit.

Your Financing Still Needs a Plan

Whichever way you go, your lender will still need a signed contract, an appraisal and the usual documents. Getting pre-approved early helps you set a realistic price range and shows the seller you are serious. If this is your first purchase, our first-time home buyer resources walk through the basics, and you can compare loan programs side by side.

Have questions about financing a purchase with or without an agent? Reach out to FLO Mortgage and a loan officer will help you sort through it.

This article is for general education and is not a commitment to lend. All loans are subject to credit approval, underwriting guidelines and program availability. FLO Mortgage, Company NMLS #1835856. Equal Housing Opportunity.