Buying expensive home without a realtor?

Question

We are in Hawaii and have done several transactions buying/selling WITH realtors. I am familiar with the Oahu market having grown up here and checking new listing and research daily for several years now. I am far from knowing all there is to know, but can't help but feel like being a buyer here with a healthy budget is just an invitation to be signed up with realtors' MLS without them having to do much of anything until we find a property that makes sense after dozens of drivebys, rental market research, etc. I crunch numbers with rental income, location, comps, etc. for every deal and potential deal. In a previous sale (maybe luck?), I set a price for our duplex 5% higher than several realtors advised (I used comps and market trends in the area, not Hawaii), and had several over asking price offers in 2 days time and closed in 30 days, apparently appraised for the person's VA loan without any hiccups. We are on realtor #2 for the sale of our condo who is really great, but condo is still on the market. Of course this realtor wants to be our buyer's agent for our next primary home (looking for ADU/multifamily), too. Either my standards are way too high, or I am actually fairly hesitant about letting any realtor off the street walk into a deal where I found the property to put an offer on and they get 50k out of the deal. I am definitely NOT putting down any realtor or services they give, ESPECIALLY when a deal goes sour, just kind of exploring options.

Would anyone advise that in this situation getting a real estate attorney could work rather than getting a realtor?

Maybe go with a flat rate type buyer's agent?

Does coming to the table and making an offer without a realtor give us any leverage in terms of sale price?

Maybe i'm biting off more than I can chew and just haven't found the right realtor?

Thanks!

Would anyone advise that in this situation getting a real estate attorney could work rather than getting a realtor?

Maybe go with a flat rate type buyer's agent?

Does coming to the table and making an offer without a realtor give us any leverage in terms of sale price?

Maybe i'm biting off more than I can chew and just haven't found the right realtor?

Thanks!

Russell Brazil · Answer

Id focus on trying to find the right agent, and not just any agent. 90% of all home sales pool within the top 1% of agents. And not every one in that top 1% is good by any means.

One problem, and this goes for any profession built around knowledge skill, is the good ones, whether agents, lawyers, CPA's etc, make it look like what they are doing is extremely easy and anyone can do it. Then you show up to court to represent yourself and end up in jail.

A top notch agent as well....they may (or may not depending on circumstances) find you properties that are not on the MLS. Id estimate that somwhere around a third of my transactions are properties that never go on the MLS.

Duc Ong · Answer

@Anna W. On the buy side, you don't get much of a discount for not having representation, since the commission agreement is between the seller and the listing agent. Therefore, the listing agent would just keep both sides, and you would not have any help with the transaction from a fiduciary standpoint.

Mike McCarthy · Answer

Unless you're going to be doing enough transactions to make it worthwhile for you to get your Realtor license, I think getting a good Realtor in your corner is well worthwhile, especially on the selling side. The right Realtor will take a load off your shoulders and will be a good resource when a closing goes sideways.

Doug Nordman · Answer

Anna, we've lived on Oahu for 30 years. My spouse and I bought our last three homes without realtors. We've also sold two homes without a realtor. Most of that is because we don't enjoy having to work through gatekeepers, and we might be control freaks.

There's no requirement to use an attorney in Hawaii, and the hardest part of the deal is getting the other side of your transaction (and the title company) to agree on a standard contract form. (The Hawaii Association of Realtors forms are technically only available to their members.) If you're a buyer without a realtor then you may be viewed with skepticism by the seller's realtor unless you have a lender's prequalification letter or proof of funds. It probably helps to make a full-price cash offer, too.

Realtors are more of an insurance policy-- if everything goes fine then you can buy or sell without one, but if things go bad then they're essential to help complete the deal (or to trigger contingencies and walk away).

As Duc says, buying without an agent only helps the seller's agent keep the entire commission. If you're selling without an agent then you could tell a buyer's agent that you'll pay 3% for a full-price offer (or some other incentive), but they may prefer to skip your listing and work with other sellers who have realtors. If you're a seller working directly with a buyer (no realtors) then of course the two of you could immediately cut the price by at least 3%-6%.

Have you contacted Duc Ong or Derek Okahashi to discuss the details of your plans? One of them may be a good fit for you.

Anna W. · Answer

Lots of great food for thought - thank you everyone! I think I might actually go for my license while I’m in law school. Each one of you left a very thoughtful reply and I really appreciate it.

Aaron K. · Answer

If you know what you are doing I'd go without, and just use an escrow company to handle the transaction, in my opinion most of a realtor's value is in local knowledge and general rules/ regulations knowledge. It sounds like you have both of those covered pretty well and may be ready to venture out on your own.

Loren Clive · Answer

From a realtor's perspective, I always appreciate it when buyers/sellers are upfront and say, "we represent ourselves" or "I prefer to work with the listing agent." Your current realtor should have no problem if you tell him/her this. That said, particularly in multiple offers situations, it does pay to work with the listing agent. Happy selling!

Mike Cumbie · Answer

It's like anything else. I could paint my house, put down my own flooring, install my own brakes, trim my own trees or watch my own kids. Somethings I am suited for, others turn into a complete mess once I put my hands in the pot. Only you know if you have the knowledge to to get through it at a NET positive. A RE transaction isn't rocket science but there is a whole lot more involved than I ever imagined when I said "I'll just grab my license and sell a few houses on the side". Now I am here years later full time. I oversaw over 250 transactions last year. Many pretty standard, some "Oh Nelly" they turned into scorched earth with everybody involved locking their heals in and people camping out in yards and sharing a bathroom.

Good Luck in whatever you decide!

Ujwal Velagapudi · Answer

For some of the reasons you've listed, and many more, I just went and got licensed to save myself the headache after going through this a few times. I've thought about a flat rate a few times, but have also heard agents taking 1% or even .5% commission, just to assist throughout the process with minor aspects for a nearly guaranteed deal. I've never used an attorney to transact the deal, but that actually sounds like a much better deal to me than giving it to an agent that doesn't seem like they would add much value to you/your search in this case.

One of my first larger offers, I went to the table without an agent, and walked away with the listing agent being a dual agent representing me and the seller. Not a good move on my part in hindsight. I think it could benefit in getting the slight reduction, maybe a fraction of the savings shared between you and the seller.

Anna W. · Answer

Thank you for your insight!

Buying expensive home without a realtor?

Buying expensive home without a realtor?

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