I found a property without an Agent

Jersey City, New Jersey
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I found a property without an Agent

Michael Peralta
New York City, NY · Member since 2017 · 37 posts · 1 vote

Hi -

Is it possible to draw up a offer letter without an agent? I think I found a solid home I want to capitalize on.

I did all the work myself so I feel guilty in giving someone a cut if I went through the trouble of doing all the work but, need assistance drafting up a solid offer letter. Any advice or template available?

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Karl B.
Rental Property Investor · Erie, PA · Member since 2015 · 1k+ posts · 2k+ votes
3y

I bought my first investment property without a realtor. It's not brain surgery. I found an expired MLS listing and contacted the seller. I got a lower price as I used the fact we didn't need a realtor as a bargaining chip.

When the property was on the MLS he was asking in the low to mid 90s (I believe he was asking $94,500 if my memory serves me right) and I bought it for 79K.

I hired a RE attorney as did the seller and it ended up being a great buy and the beginning of my RE journey.... 

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  • Bill B.
    Investor · Las Vegas, NV · Member since 2013 · 8k+ posts · 10k+ votes
    3y

    Is it for sale on the mls? If so you’re not paying anything, the seller is paying the same either way. You could offer to use the selling agent. They may give the seller a discount or be more likely to push your deal. You may end up paying more than having your own realtor but the same or less compared to using nine. 

    If it's not on the MLS of course you don't use a realtor because that's like offering the seller 5% less.

    4Reply
  • Richard F.
    Honolulu, HI · Member since 2008 · 3k+ posts · 2k+ votes
    3y
    Aloha,

    Unless you are experienced, which you probably are not since you are asking for advice here, you have no idea of what NEEDS to be included; what SHOULD be included; and what should NOT be included in a Purchase Offer. Contingencies and contingency periods; escrow instructions; inspection; document requests; type of financing; Special Improvement or Historical Districts or HOA DCC&R's and Financials; and so much more dependent on what, where, and from whom you are Purchasing. Mistakes here will cost you long after the transaction is closed. At a minimum have an experienced RE Attorney review your Offer document. Or, pay an Active, Experienced, Realtor and use specific forms and processes that are typical, and up to date, for your locale.
    5Reply
  • Maria D'Aura
    Real Estate Agent · Livermore, CA · Member since 2016 · 173 posts · 74 votes
    3y

    What is "all the work" you have done so far? Finding the property is not really ALL of the work if you don't know what the next step is. For me, the actual work is what happens after finding the property, which oftentimes buyers and sellers don't really see happening. Also, as Bill already pointed out if it's already listed on the MLS the seller has likely already agreed to pay for a buyer's agent.

    7Reply
  • Eliott Elias
    Investor · Austin, TX · Member since 2021 · 9k+ posts · 5k+ votes
    3y

    I wouldn’t purchase a property without a realtor, especially as a newbie. The sellers pay the commission anyways.

    4Reply
  • Lawrence Zhou
    Lender · Hoboken, NJ · Member since 2016 · 70 posts · 25 votes
    3y

    You can by reaching out to the listing agent.  That listing agent will likely ask for your permission to be a dual agent where they represent both the buyer and seller.

    I agree with the other responses.  Having your buyer agent is a good move.  The buyer agent is there to protect your interests by running comps, negotiating with the seller's agent, and putting together a solid team of real estate professionals (i.e., attorney, lender, home inspector, homeowner insurance, title, etc.) to get your deal to the closing table.

    If you're looking to interview a buyer agent (or two) in Jersey City, please feel free to DM me.  Happy to make some introductions for you.

    2Reply
  • Mario I Fernandez
    Miami Beach, FL · Member since 2019 · 124 posts · 48 votes
    3y

    Hey Michael, 

    Yes definitely you can do it all yourself but there are a lot of moving parts in a real estate transaction.

    Do your homework and prepare for a long and hard experience to learn. 

    3Reply
  • Karl B.
    Rental Property Investor · Erie, PA · Member since 2015 · 1k+ posts · 2k+ votes
    3y

    I bought my first investment property without a realtor. It's not brain surgery. I found an expired MLS listing and contacted the seller. I got a lower price as I used the fact we didn't need a realtor as a bargaining chip.

    When the property was on the MLS he was asking in the low to mid 90s (I believe he was asking $94,500 if my memory serves me right) and I bought it for 79K.

    I hired a RE attorney as did the seller and it ended up being a great buy and the beginning of my RE journey.... 

    9Reply
  • John MorganPro Member
    Rental Property Investor · Grand Prairie, TX · Member since 2018 · 2k+ posts · 2k+ votes
    3y

    @Michael Peralta

    I’ve bought 18 properties without an agent. I just use the listing agent every time. If I like the property, I text the listing agent my offer. So much easier this way for me.

    2Reply
  • Account Closed
    Investor · Scottsdale Austin Tuktoyaktuk · Member since 2021 · 4k+ posts · 4k+ votes
    3y
    Quote from @Michael Peralta:

    Hi -

    Is it possible to draw up a offer letter without an agent? I think I found a solid home I want to capitalize on.

    I did all the work myself so I feel guilty in giving someone a cut if I went through the trouble of doing all the work but, need assistance drafting up a solid offer letter. Any advice or template available?

    Of course you can buy a proeprty without an agent. I haven't ever used one to buy an investment property.
    There are a couple of questions though

    1. Did you find the property on the MLS?  If yes, then you have to abide by the contract the seller signed with their real estate agent or get them to modify the contract.

    2. If the property is not listed on the MLS, how do you know the owner is willing to sell?

    1Reply
  • Richard F.
    Honolulu, HI · Member since 2008 · 3k+ posts · 2k+ votes
    3y
    Quote from @Account Closed:

    Of course you can buy a proeprty without an agent. I haven't ever used one to buy an investment property.
    There are a couple of questions though

    1. Did you find the property on the MLS?  If yes, then you have to abide by the contract the seller signed with their real estate agent or get them to modify the contract.

    While the Seller may have to "abide by the contract...signed with their RE agent", in terms of paying or not paying a commission, the rest of the terms that might be shown on MLS (or within the actual Listing Agreement) have no bearing on a Buyer's Offer to Purchase. You can OFFER any terms and conditions you desire, including asking for reduced Seller's commission. This is called negotiating. It is up to the Seller to accept or reject some or all of your terms. They may reject entire offer; they may also make a counter offer somewhere in the middle. In turn, you can counter back, and they again can accept, reject, or meet part way, over and over until a deal is finalized; you miss a deadline; or the Seller finally rejects completely.

    Is any of this recommended for someone Offering on what will likely be one of the biggest expenditures of their life, when they have very limited experience? Absolutely not. Book knowledge alone will not provide you with the same insight that a little actual experience will. As I stated previously, mistakes in writing an offer can cost you Big Bucks long after closing.
    1Reply
  • Tim Hall
    Flipper/Rehabber · Tallahassee, FL · Member since 2014 · 462 posts · 237 votes
    3y

    @Michael Peralta oh dear mate, bring on the realtors and how they earn their money. There are many steps to closing on a property. If you found the property on the mls then you’ve already secured a realtor whether you like it or not. The seller pays for both sides of the buying and selling process. In this case why wouldn’t you get one of your choosing. Otherwise if you found a property direct to the seller then you don’t have to use one. You just have to go through all the steps. Drawing up the contract and making sure everything you want is in there. Finding a title company, Surveys , negotiations inspections, re-negotiations. If you’re new then you have to go thru a few of these with help and then you can start doing some on your own.

    1Reply
  • Nathan GesnerBusiness Member
    Moderator
    Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
    3y
    Quote from @Michael Peralta:

    I understand your position (sort of) but your question demonstrates exactly why you need an agent. You found a property, which is the least difficult step in the process.

    An agent knows the market better and may have knowledge that makes this deal look less attractive. An agent knows contract law. They typically have better skills and more experience with negotiations. They are not emotionally involved in the purchase and better suited to make non-emotional decisions.

    You may be saving money, but you may be putting yourself at risk of making a major mistake because you don't have the knowledge or experience.

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    5Reply
  • Renee Williams
    Member since 2023 · 20 posts · 22 votes
    3y
    Quote from @Karl B.:

    I bought my first investment property without a realtor. It's not brain surgery. I found an expired MLS listing and contacted the seller. I got a lower price as I used the fact we didn't need a realtor as a bargaining chip.

    When the property was on the MLS he was asking in the low to mid 90s (I believe he was asking $94,500 if my memory serves me right) and I bought it for 79K.

    I hired a RE attorney as did the seller and it ended up being a great buy and the beginning of my RE journey.... 

    Love this! 
    6Reply
  • Terrell Garren
    Rental Property Investor · Concord, NC · Member since 2016 · 1k+ posts · 3k+ votes
    3y

    For the MLS, I use the listing agent. I determine the offer, no inspections, no contingencies, 10 days to close, offer good for 24 hours. I've purchased maybe 15 or so SFHs not on the MLS without a realtor. Never a problem but I do have a very good local closing attorney.

    3Reply
  • Account Closed
    Columbus, OH · Member since 2023 · 427 posts · 254 votes
    3y

    Worth considering that typically the seller will pay the agent's commission, if money is your concern. If found through MLS, just use the listing agent, and if you found it off market you COULD go about this yourself, but it's a good idea to have an attorney overview any paperwork you personally prepare/sign.

    1Reply
  • Michael Peralta
    OP
    New York City, NY · Member since 2017 · 37 posts · 1 vote
    3y

    Also, to provide more context the listing agent is the owner of the house. My thought process was to negotiate and save 3.5% on the total of the home (roughly $30K). I plan to protect myself as much as possible by talking with a real estate lawyer and adding sufficient parameters behind closing.

    0Reply
  • Michael Peralta
    OP
    New York City, NY · Member since 2017 · 37 posts · 1 vote
    3y

    And I found it on MLS.

    0Reply
  • David Dachtera
    Rental Property Investor · Rockford, IL · Member since 2014 · 4k+ posts · 2k+ votes
    3y
    Quote from @Michael Peralta:

    Hi -

    Is it possible to draw up a offer letter without an agent? I think I found a solid home I want to capitalize on.

    I did all the work myself so I feel guilty in giving someone a cut if I went through the trouble of doing all the work but, need assistance drafting up a solid offer letter. Any advice or template available?


    Your attorney should be able to help you. You'll be signing legally binding contracts at closing; so, you should be using an attorney whether you have a buyer's agent or not.

    My $0.02 ...

    1Reply
  • Brad Jacobson
    Realtor · Ogden, UT · Member since 2019 · 338 posts · 415 votes
    3y

    If it's on the MLS, you should use an agent because there's already a "buyer's agent commission" built into the price. If you've done all the work, you're welcome to negotiate some financial support from your agent but you might as well use a great agent to teach you the ropes and help you through the transaction.

    If it's not on the MLS, still use an agent if you're really inexperienced. However, go above and beyond to find a GREAT agent who will make the process a good learning experience for you. Let the agent build in a few grand into the purchase price so they get a small commission out of it.

    Use great professionals and pay them for their work.  It'll pay big dividends if you get the right agent.

    Good luck!

    0Reply
  • Matthew Irish-JonesBusiness Member
    Real Estate Agent · Buffalo, NY · Member since 2017 · 2k+ posts · 2k+ votes
    3y

    @Michael Peralta out of curiosity, what work did you do?

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  • Kevin Sobilo
    Realtor · Hanover Twp, PA · Member since 2018 · 3k+ posts · 3k+ votes
    3y
    Quote from @Michael Peralta:

    Also, to provide more context the listing agent is the owner of the house. My thought process was to negotiate and save 3.5% on the total of the home (roughly $30K). I plan to protect myself as much as possible by talking with a real estate lawyer and adding sufficient parameters behind closing.

     @Michael Peralta, why would you save anything on the house? Unless the agent is the owner/broker they will still collect the full commission from the contract. I suppose the agent could factor in their own cut of the commission but I assume they did they when they listed it. 

    0Reply
  • Aaron Williams
    Real Estate Agent · Boise, ID · Member since 2017 · 31 posts · 18 votes
    3y
    Quote from @John Morgan:

    @Michael Peralta

    I’ve bought 18 properties without an agent. I just use the listing agent every time. If I like the property, I text the listing agent my offer. So much easier this way for me.


     If you're using the listing agent every time, then you are using an agent and that listing agent is double ending the deal. The seller predetermines before listing how much commission they are paying an agent bringing in the buyer. I'm not saying using the listing agent isn't a good thing. But you're not necessarily getting a better deal by doing this. Congrats on your 18 properties!

    0Reply
  • James Hamling
    Real Estate Broker · Minneapolis, MN · Member since 2011 · 5k+ posts · 6k+ votes
    3y
    Quote from @Michael Peralta:

    Also, to provide more context the listing agent is the owner of the house. My thought process was to negotiate and save 3.5% on the total of the home (roughly $30K). I plan to protect myself as much as possible by talking with a real estate lawyer and adding sufficient parameters behind closing.

    Ok, let's re-frame this. 

    A Professional Boxer, is inviting you into the ring, and you'd like to save the $ on a "coach in your corner" and just jump into that ring to "see what happens".... 

    1Reply
  • Eric Mcginn
    Real Estate Investor · Chico, CA · Member since 2016 · 248 posts · 105 votes
    3y

    Agents are free to you, the buyer. Find one you like and throw them the closing to build rapport for next time. 

    0Reply
  • Dave Skow
    Lender · Seattle, WA · Member since 2014 · 2k+ posts · 899 votes
    3y

    @Michael Peralta- thanks   1)  ask an  agent if they will be  willing to help write up the deal  for a discounted fee  2) ask the listing agent if they are willing to  waive /  discount the  fee they would normally  charge if you were to work with them as your agent  3)  try avoiding doing this yourself  if you havent  already  done this or  if you are  very  aware of how transactions work 

    0Reply
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