How to Buy or Sell a Home Directly
In case you were not aware, it is completely possible and absolutely legal for a buyer and homeowner to work directly on the sale of a home in any state - without any real estate agents. This doesn't mean that you cannot hire professionals, including real estate agents, to assist with the transaction - while still not paying any commission.
The information that follows is a sample from an ever-growing knowledge base curated by Off Market Direct to help individuals understand how to buy or sell directly so they can decide if and how to proceed.
Part of the Off Market Direct mission is to educate those wanting to learn about how to buy or sell a home directly. The intent of Off Market Direct is to empower a buyer or seller to make the decision as to whether to transact directly or not, without bias.
When making comparisons or reference to real estate transactions with or without real estate agents, Off Market Direct provides a balanced perspective - openly acknowledging the advantages as much as the disadvantages.
Below are the steps involved with a real estate transaction - once there is a seller and buyer of a home. With the exception of the second step, they are no different than if a listing and/or buyer's agent was involved.
| Step | Buyer | Seller | |
|---|---|---|---|
| 1 | Showing of the Home | ||
| 2 | Discuss and tentatively agree to basic terms of a sale - price, contingencies, closing date, etc. (not legally binding) | ||
| 3 | Find a Lender and Get Preapproved for a Mortgage (If Needed) | ||
| 4 | Make an Offer (Agreement of Sale Created and Signed by Buyer) | ||
| 5 | Accept an Offer (Agreement of Sale Signed by Owner) | ||
| 6 | Get a Home Appraisal (as Required by a Lender) | ||
| 7 | Get a Home Inspection (Optional) | ||
| 8 | Select a Title Company (Provider of Title Insurance and Escrow) | ||
| 9 | Purchase Homeowners Insurance (Typically Required by a Lender, but Otherwise Optional) | ||
| 10 | Do a Final Walkthrough (Optional) | ||
| 11 | Closing / Settlement (Facilitated by Title Company) |
For either party, transacting directly means that you will not have the benefits that are expected when with working with a real estate agent:
- Full management of the process with guidance and assistance throughout
- Negotiating the price and other terms of a sale
- Recommendations of lenders, home inspectors and other professional services
Without a real estate agent, you may still hire professionals for a fee, but without paying any commission:
- Transaction Coordinator/Broker - They will help the buyer and/or seller plan and coordinate all of the steps of the process. They will not perform the steps, but can answer general questions without providing any guidance or advice.
- Real Estate Attorney - They will work with the buyer or seller to represent them throughout the transaction - creating an agreement of sale (as an offer from the buyer) and address legal matters as part of the proceeding through the closing.
Off Market Direct provides a directory of Transaction Coordinators and Real Estate Attorneys for the areas where a buyer may create a campaign.