Help: Buying Without an Agent?

Question

Hello BP,

Calling on all real estate agents. I am lining things up to purchase another rental after the first of the year. This deal came to me off market from the same seller that I have bought property from before. The difference with this one is I didn't find it through my agent.

I have already negotiated with the seller and we verbally agreed on repairs he would make and a purchase price. Nothing is officially on it yet since this deal wont happen for another 5 months.

What I am wondering is should I get my agent involved? I am not opposed to this and normally I just would, but I doubt the seller would be willing to pay that commission and I don't really want to either. The seller is not using an agent. I know that typically seller pay all the agent fees (buyer and seller) at least here in Kansas, but just wasn't sure how all this works if only buyer had an agent. If I decide to go about this without an agent I am just worried I am going to miss something, not sure where to get a contract to fill out, etc...

Any advice?

Charlie MacPherson · Answer

@Joe A Warner I don't mean to sound harsh, but the way I'm hearing you is that you would like the services of an agent but don't want to pay for them.

Based on what you've written, I see mistakes already.  Specifically, a verbal agreement to do repairs later is meaningless.  If it's not in writing, it doesn't exist.

You've said that the purchase is happening in the future.  Do you have a written purchase contract?  With EMD in escrow?  Again, if that answer is "no", you don't have anything enforceable.  And if the agreed upon repairs are not part of that contract, they don't exist.

A sharp agent would be sure that the contract was fully and properly executed and include a repair addendum, inspection contingency and finance contingency at a minimum.  That can all be done far in advance of the sale, provided that the dates reflect the actual timeline.

I suggest that you rethink your position and get you agent involved quickly.

Alex Olson · Answer

@Joe A Warner I agree with what @Charlie MacPherson says. Not sure what the purchase price is but if you don't think the seller is willing to get an agent involved (though if they don't know how to get contracts set up or title open then it will be a difficult process). I would talk to the seller and, worse case, say "look, we need an agent involved to get this past the finish line. I am willing to pay x% of the agents fee if you are willing as well, as is typical in a real estate transaction" and if he is not willing, you could and should still pay an agent consulting fee of some sort to make sure you are covered. Your final option is to have your attorney represent you, which may cost more than an agent. Hope that helps!

Brian Boyd · Answer

@Joe A Warner As a lawyer, I’m already freaked out with what you have stated. Please, please, please get an agent. If it’s not in writing it becomes a he said he said situation if things go south.

Moreover, even though I can read contracts and have been doing this successfully for some time, another perspective if worth true spend: Always.

But, you can always come back to BP and we will try to help you in anyway possible. Good luck out there!

Bill P. · Answer

Use an agent for a reduced fee early in your career until you are comfortable with doing it yourself

You don't know what you don't know until its too late.r

Steve K. · Answer

@Joe A Warner I’ve helped out with deals like this before. Right now I’m helping two neighbors as a transaction broker (not representing either side but just facilitating the deal by putting the paperwork together, etc.). I’ll do that for a reduced fee if everything is all teed up and all I have to do is manage the paperwork. It’s pretty typical for FSBO sellers to  place a higher value on their property than comps actually support, so at the very least I would get an experienced agent’s opinion on the sale price, (if you haven’t already).

Maria Bakaj · Answer

@Joe A Warner I would recommend involving an agent and just negotiating the commission fee since you’ve already found the property and done some of the negotiation for the purchase. There’s still a lot of paper work besides the contract (i.e. Title) that an agent can help get going along with coordination for inspections and appraisal.  I recommend an agent instead of an attorney as an attorney won’t handle the coordination part and they could potentially cost as much or more than an agent.

Victor N. · Answer

@Joe A Warner. A very good alternative would be to reach out to Security First Title in Wichita.  You need title insurance and should use a title company to close the transaction to make everything is prepared correctly and recorded correctly.  They can prepare all the documents you need probably cheaper than an agent's commission.  It is easier to persuade the seller to pay half the title and closing company's fees than all of a real estate commission.   I have worked with them numerous times and they are very professional.

Joe A Warner · Answer

@Steve Morris I do have somewhat of a relationship with the seller as I have bought property from him before. I am taking any negotiations with a grain of salt until we have a written contract. The purchase price is relatively low because this will be a renovation once I acquire it, so I'll probably end up getting my agent involved just to ensure everything gets handled properly and thoroughly.

Joe A Warner · Answer

@Alex Olson Thanks for your advice. It sounds like so far the consensus is to get my agent involved to ensure a smooth process. I am definitely not opposed to this I have a great agent I usually work with. Since I have only purchased a couple of properties to date, I just don't feel confident enough to go about this with just the knowledge I have now.

Thanks!

Joe A Warner · Answer

@Charlie MacPherson Thanks for your input. I agree with you about repairs/price being meaningless without being writing which is why I clarified that this was verbal.

Perhaps I should rephrase the question. I am looking for advise as to whether or not I should hire an agent. If I decide to go about this without an agent does anyone have advice for me?

Thanks,

Help: Buying Without an Agent?

Most Popular Reply