Real Estate Witch

  • Sell FSBO
    • How to Sell a House Without a Realtor
    • Best Flat Fee MLS Companies
    • FSBO Zillow Listings
    • Best FSBO Websites
    • Best Flat Fee MLS Companies in Florida
    • Companies That Buy Houses for Cash
  • Save When You Sell
    • Low Commission Real Estate Companies
    • 1% Commission Realtors
    • 2% Commission Realtors
    • Discount Real Estate Brokers
    • How to Find a Realtor
    • Realtor Fees
    • How to Negotiate Realtor Fees
  • Reviews
    • Clever Real Estate Review
    • Redfin Review
    • Redfin vs. Realtor
    • Ideal Agent Review
    • HomeLight Review
    • Opendoor Review
  • Blog
  • About
    • Authors
    • Contact Us
  • 808-213-6770
Find Agents

Do I Need a Realtor to Buy a House?

do i need a real estate agent

Published July 3, 2023

Expert Verified
  • Written by Ashley Sweren

  • Edited by Bailey Peterson

  • Reviewed by Steve Nicastro

Written by Ashley Sweren

Ashley Sweren is a contributing writer to Real Estate Witch, where she focuses on how to find a real estate agent — or sell your house without one.

Edited by Bailey Peterson

Bailey Peterson is a Product Manager at Clever Real Estate, where he helped lead content strategy for Real Estate Witch and its sister brands. He's an authority on real estate commission rates, home selling costs, and flat fee MLS companies.

Reviewed by Steve Nicastro

Steve Nicastro is a Content Team Lead at Clever Real Estate, where he uses his real-world experience as a real estate agent and investor to help home buyers and sellers make better real estate decisions.

What does a realtor do for a buyer? | How much does a realtor cost? | Money-saving alternatives | Exceptions

Home buyers don’t technically need a realtor to buy a house, and can negotiate directly with sellers and hire a real estate attorney for closing. But hiring an agent is usually a good idea and doesn’t cost buyers anything out of pocket.

Key takeaways

  • Buyers who use a real estate agent often score a better price thanks to the agent’s expert guidance and negotiating skills.
  • Real estate agents can make buying a home simpler and less stressful, especially when it comes to inspections, negotiations, and paperwork.
  • Some discount brokers can match you with a buyer’s agent and even offer cash back at closing.

» MORE: Do you need a realtor to sell?

💰 Connect with a Clever agent and save thousands 💰

Do I need a realtor to buy a house? 

While nothing stops you from buying a house without the help of a real estate agent, it’s usually not a smart move. That’s because they can help protect you from, among other pitfalls:

  • Overpaying for a house
  • Messing up paperwork
  • Overdoing or overspending on repairs that you could negotiate instead

Unsurprisingly, the vast majority (87%) of buyers purchase their home with the help of an agent. Buyer’s agents handle a wide range of responsibilities, including advising you on each home’s fair market values and offer prices as well as negotiating terms in your favor.

What home buyers want most from their agent
1. Help understanding the buying process
2. Pointing out features or faults with a property
3. Referrals of service providers (home inspectors, appraisers)
4. Negotiating better sales contract terms
5. Enhance buyer's understanding of the local market

Source: National Association of Realtors

» LEARN: Good Ways to Find a Buyer’s Agent

How much does a buyer’s agent cost?

The seller will likely cover your agent’s commission (2.5–3%), and you pay nothing out of pocket. Sellers typically pay both real estate agents commissions, which are generally around 5–6% of the home’s sale price, split between each agent and deducted at closing. 

You could potentially save money by negotiating with the seller and their agent directly to refund any savings from the buyer agent commission back to you, either through a lower sales price or a credit at closing. This might not be the best move, though.

  1. The pressure and stress of buying a home without an expert in your corner may not be worth the money saved.
  2. There’s no guarantee you’ll actually save money at closing, especially if you don’t buy the house at a fair price.

Cash back options for buyers

Some real estate services offer home buyer rebates. They require approval from your lender and aren’t available in some states.

With a commission rebate, your agent shares part of their earned commission with you in the form of credits, which you can use for closing costs, repairs, or other buying expenses.

Other companies, like Clever Real Estate, send eligible buyers cash back after closing without lender approval required.

What does a realtor do for a buyer?

When representing a buyer, a real estate agent takes on several responsibilities to smooth their home search and purchase.

jobdescription
💲 Facilitates financingConnects you with a lender to determine your budget and secure pre-approval. Guides mortgage-related paperwork.
🔎 Identifies propertiesFinds homes that meet your needs and budget requirements. Analyzes properties to determine fair pricing.
🏠 Tours homesArranges private home showings. Joins open house visits. Highlights noteworthy features or flaws.
📝 Submits offersAdvises on offer amount, contingencies, etc. Writes up and submits offers. Manages related paperwork.
🤝 Negotiates dealsProvides expert counsel during negotiations. Communicates on your behalf with the listing agent.
🎉 Orchestrates closingOversees home inspections. Hires and manages other professionals to complete the transaction, like title or escrow company, attorney, specialty inspectors, and contractors.

💡 Learn more: What is a Buyer’s Agent? Everything You NEED to Know

When buying without a realtor may be OK

Buying a house without a realtor may be warranted in a few situations.

Deals between friends or family members

If you and the seller know each other personally and agree on the sales price and contract terms immediately, then one agent can handle the process for both parties. This is known as a dual agency agreement.

Working with one agent could streamline the process and save you some money, as most agents are open to working for a reduced commission when representing both sides in a deal. Note: Some states prohibit dual agency because it presents a conflict of interest.

Just remember that buying or selling a house to family or friends carries significant risks, including more scrutiny from the IRS and lenders or family drama if things don’t work out as planned. Consider hiring a real estate attorney for more help.

New construction

Real estate agents can be helpful when purchasing a newly built home but are not essential. 

Realtors can guide you through the process, including help with lot selection and advice on what finishes retain the most value. However, there may not be much room for negotiation in new construction, limiting the need for an agent. 

❗ If you visit a new construction sales center without agent representation, you may jeopardize your ability to be represented by an agent later on if you decide to purchase a home there. (Learn more.)

Related reading

What is a buyer’s agent? A buyer’s agent is a real estate agent who represents a home buyer. Learn more about what a good buyer’s agent can do for you.

What are good ways to find a buyer’s agent? The best ways to find a buyer’s agent include agent matching services, personal referrals, and lenders. We compare your best options.

Best questions to ask a realtor. Before you hire a realtor, you should interview them by asking the right questions to test their legitimacy, fit, and value.

Filed Under: Buyers, Buying a House

About the Author

Ashley Sweren is a contributing writer to Real Estate Witch, where she focuses on how to find a real estate agent — or sell your house without one. Read more

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

3 × 2 =

Need an Agent?

Connect with top-rated agents near you and save thousands on commission fees.

I Want to Learn More

How To Sell Your Home

  • What Companies Offer the Lowest Real Estate Fees?
  • Read This Before You Pay For a Flat Fee MLS Service

Real Estate Reviews

  • Clever: Are Those Commission Savings Legit?
  • Redfin: What It Really Charges Sellers
  • Ideal Agent: Learn the Truth About Its 2% Fees
  • Opendoor: How Much Will It Pay For My Home?

Categories

  • For Home Buyers
  • For Home Sellers
  • Save When You Sell Your Home
  • Costs to Sell a House
  • Sell a House Without an Agent
  • Sell Your House Quickly
  • Real Estate Company Reviews

Real Estate Witch
  • Home
  • Blog
  • About
  • Contact Us
  • Sitemap

Copyright © 2023 Real Estate Witch | All rights reserved.
Privacy Policy | Terms of Service