Purchasing property without a realtor

[Rebecca A.]

I have an opportunity presented to me to purchase a rental house at a decent price.  But the seller has suggested that we not use a realtor to save money on both sides which would lower the sales prices.  I am in Bakersfield, California and instead of a sales price of $155,000, I could purchase the house at $145,000 instead.  I would put 20% down and still need a loan for the remainder of the balance.  Would we just choose a title company and process all the paperwork through the title company?

[David M.]

@Rebecca Abla

I see the $10k discount is basically the realtor commission so that makes sense...

Here’s the thing... if you have to ask... you aren’t savvy/experienced enough to carry out a real estate transaction yourself, maybe you should have one help you.

I’m licensed in NJ and don’t know California’s processes. I have no idea if CA requires attorney’s — some States do. You seemed to have jumped over inspections...

Maybe see if the seller will pay a cooperating commission to a realtor of yours(with a commensurate increase in sales price). I assume in CA 2.5% is customary.. maybe a qualified agent will take you through the process for less since you’ve already found the deal and just need “guidance” on the rest of the process. In this manner you’ll know you will have yourself covered.

Good luck.