With the wealth that home buyers have, buying a home without a realtor Long Island may be tempting. If you follow the right procedure, you can save hundreds of dollars in agent commission. But if you don’t know how to do it, you may lose a lot of money. That’s why it’s vital to look at your options carefully before making a decision. This article explains how you can purchase a house without an agent if you choose to do so.
- Agree With The Listing Agent
As a buyer, you can negotiate the house price with a listing agent because you’ll save the seller from paying your realtor’s commission. However, to do this, you need to have good negotiation skills. If the seller brings down the purchase price to capture the lack of agent fees, you’ll remit lower monthly mortgage payments. Negotiating with the seller’s agent can enable you to save up to 3% in commissions. Furthermore, even if the seller pays the commission, you’ll still save your agent’s commission.
- Find A Professional To Review Your Paperwork
You may need to hire a lawyer to help you review the purchase documents because purchasing a house involves a large transaction. As a result, the documents to be signed may be difficult to understand if you don’t know how to read through them. Apart from that, legal issues may arise, and your real estate lawyer may be the only resource at your disposal to help you solve the problems.
One huge mistake that some homebuyers make is to wait until closing before hiring a lawyer. However, you shouldn’t do this because an experienced attorney will advise you on the problems that may arise during the purchasing process and explain the language in the sale agreement to protect you from being scammed. Hiring a lawyer beforehand can also prevent you from being at the seller’s mercy.
- Go Through The Closing Disclosure
A closing disclosure is an essential document with your average monthly payments, mortgage terms, and closing costs. Most disclosures are around five pages and need five days for review. Take your time to read the document and compare it to the estimated loan that you expect from your lender. If you find any issues with the document, make adjustments before submitting them. Ensure you look at the interest rates, prepayment penalties, estimated monthly payments, and closing costs.
It’s also wise to request the final bills of the seller on the closing day. From the bill, you’ll know what the seller has or hasn’t paid.
- Sign Every Document Before Getting The Keys
On the day of closing, take one or two hours to review and sign the multiple documents. Closing documents usually come in two sets, one highlighting the contract between you and your and lender and the other having an agreement between you and the seller. Don’t just rush to append your signature before ensuring that everything is okay. Remember this is a legal document and may be used against you in court. Once you sign everything, you’ll get the keys to your home.
It’s possible to buy a home without a realtor, though it’s a bit risky. If you carefully follow the right procedure, you’ll end up saving commission fees that you’d have paid your real estate agent.