Buying a home without buyers agent in WKY

Buying & Selling Real Estate
9yFollow

Buying a home without buyers agent in WKY

Cody McDonald
Evansville, IN · Member since 2016 · 2 posts · 1 vote

Hello Bigger pockets!!

I have been laying low for a while now studying everyones advice in buy and hold multifamily properties. As well as general advice in real estate investing and I thank you all for the amount of intelligence and real world honest experiences everyone has shared.

I currently live in Western KY. I am 25 years old and have just made the step to get engaged to my fiance. She knows that I have huge goals to reach in a future of investing in real estate and we struck a deal. We currently rent in a area where home prices are generally cheap so it doesnt take much to buy a house like it would in a metro area. The deal is I buy her a home and i can then chase my dreams in the real estate world. with years of eliminating debts and shooting my credit score to the roof I am finally ready to do so.

We have came across a home in her home town fredonia ky. It is an off market deal. The sellers do not want to use a real estate agent. So i respect that and in order to get a cheaper price would not like to use a buyers agent so they will cover my closing costs. 

My question to you bigger pockets members is what is the step by step process that i should take to do the deal. If possible without an agent involved. I will be financing this deal  it is not a cash offer. All i can find on internet is one sided information from realtors. 
Thank you!

1Reply
14 views

Most Popular Reply

Dawn BrenengenBusiness Member
Moderator
Real Estate Broker · Raleigh, NC · Member since 2014 · 2k+ posts · 1k+ votes
9y

@Cody McDonald  I know I'm an agent too, but if this is your first purchase, you really should get one.  If you are determined not to get one, at least hire a lawyer to do the paperwork, but who is going to walk you through the contract to close process?  Do you know all the inspections to do, what the home is actually worth, how to negotiate with the seller? It's not just the sales price, but it's also the terms and then again after the inspections.  

If you were experienced, then I would have a totally different recommendation, but the fact that you are asking how to do this really tells me that you need the hand holding.

1. Write offer (best off using the tried and true forms an agent would use.  Attorney should also have access)

2. Get preapproval from lender

3. Present to seller and negotiate price and other terms.  Come to agreement

4. Schedule inspections/do due diligence- Home, termite, radon, well, septic, survey (and anything else that might be specific to your case - lead, asbestos, etc).  Make sure there are no underground oil tanks, encroachments on the property, etc. 

5. Get appraisal in.  If home doesn't appraise, renegotiate with seller

6. Negotiate repairs or discount off the sales price

7. Hire title company or attorney (depends on your state) to handle the closing details.  They will make sure there is clear title, liens are paid off, etc.

7. Make sure you hit all timelines in your contract

8. Get homeowners's insurance

9. Sign off at closing.

There are lots of little details in between, but these are the main points of the process.

Podcast Guest on Show #101
1Reply
See this reply in the discussion

7 Replies

Jump to latestLatest
  • Bart H.
    Dallas, TX · Member since 2016 · 1k+ posts · 745 votes
    9y

    I have to be honest, if I were you, I would find an agent who represented me, they will save you move money just in negotiations, knowing the process etc.

    I cant tell you how many times my agent have paid for themselves just in the negotiations on price, or finding things in inspections or even just recommending we pass on a deal that wasnt a deal.

    0Reply
  • Dawn BrenengenBusiness Member
    Moderator
    Real Estate Broker · Raleigh, NC · Member since 2014 · 2k+ posts · 1k+ votes
    9y

    @Cody McDonald  I know I'm an agent too, but if this is your first purchase, you really should get one.  If you are determined not to get one, at least hire a lawyer to do the paperwork, but who is going to walk you through the contract to close process?  Do you know all the inspections to do, what the home is actually worth, how to negotiate with the seller? It's not just the sales price, but it's also the terms and then again after the inspections.  

    If you were experienced, then I would have a totally different recommendation, but the fact that you are asking how to do this really tells me that you need the hand holding.

    1. Write offer (best off using the tried and true forms an agent would use.  Attorney should also have access)

    2. Get preapproval from lender

    3. Present to seller and negotiate price and other terms.  Come to agreement

    4. Schedule inspections/do due diligence- Home, termite, radon, well, septic, survey (and anything else that might be specific to your case - lead, asbestos, etc).  Make sure there are no underground oil tanks, encroachments on the property, etc. 

    5. Get appraisal in.  If home doesn't appraise, renegotiate with seller

    6. Negotiate repairs or discount off the sales price

    7. Hire title company or attorney (depends on your state) to handle the closing details.  They will make sure there is clear title, liens are paid off, etc.

    7. Make sure you hit all timelines in your contract

    8. Get homeowners's insurance

    9. Sign off at closing.

    There are lots of little details in between, but these are the main points of the process.

    Podcast Guest on Show #101
    1Reply
  • Lloyd Lind
    New Orleans, LA · Member since 2016 · 20 posts · 8 votes
    9y

    @Cody McDonald. I wll just be blunt... You would be a FOOL to try doing your first house purchase, investment or not, without an agent to guide you especially with a house off the market. How do you not know owner is not trying to pull wool over your eyes? You have no reference as to what is "normal" real estate practice and what is not.

    I would say what you are attempting to do "to save money/commission" will not only cost you more in the long run, but would be akin to reading books and watching videos on how to drive a car and then without having ever driven one, taking your first drive in the Indy 500. Or in your case riding a horse competitively after just reading how to do it.

    If it was your fourth or fifth deal, I could see it; but not your first.

    0Reply
  • Matthew Schroeder
    Investor · Carmel, IN · Member since 2014 · 332 posts · 245 votes
    9y

    @Cody McDonald  If it is your first deal, you should absolutely, positively use an experienced agent and if nothing else, consider it an investment in your "education".  During the process, ask that agent as many questions as possible.  What is the market like?  What are the comps?  What are the most important factors for prospective buyers (sf, # of bedrooms, garage, etc.)?  Also, Going through the inspection & title/escrow process is a huge learning experience.

    0Reply
  • Lloyd Lind
    New Orleans, LA · Member since 2016 · 20 posts · 8 votes
    9y

    @Cody McDonald Also, do you know all the laws in your state as it pertains to the purchase of an immovable. Here in LA, ALL RE transactions must be accompanied by a property disclosure usually as part of purchase offer. Even if KY law doesn't require it, I would insist on one and the included lead based paint disclosure.

    0Reply
  • Cody McDonald
    OP
    Evansville, IN · Member since 2016 · 2 posts · 1 vote
    9y

    Thank you all for youre replies. It looks like i will be calling my local realtor. Haha. 

    0Reply
  • James WilcoxBusiness Member
    Real Estate Agent · Bowling Green KY ~ Lexington, KY · Member since 2015 · 1k+ posts · 602 votes
    9y
    Cody McDonald congrats on your engagement! I would try to convenience your wife to let you buy a nice duplex. That way it is your "home" and investment. House hacking is IMO the best way to get started in REI. Your soon to be bride needs to be on the same page as you because you won't get very far without her on your side. Ultimately that is all up to you two though. From someone who isn't an agent, as others have said, I would just use one on your first deal. You are the buyer so you don't pay the commission and it isn't your responsibility to look out for the seller. The amount of savings you might get on your end is minimal.
    REI James w/ eXp Realty54 Reviews
    WebsiteView Page
    0Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free