How to Buy a House with Cash? Step-by-step guide?

Question

I'd like to buy a house with cash without using a buyer's agent, in order to save on fees. While I understand the steps in broad strokes (make an offer, request contingencies, give them earnest money, and so on), I've had trouble finding any kind of guide that explains each step in detail. Does anyone know a book or website that provides such information?

Example: I know I need to make an offer. But how exactly do I do that? Just send an email saying "I'm offering $35k cash to buy the property at this address (...) from the current owner with such-and-such contingencies"? Or is there a form I fill out? Does it need to be notarized?

Basic questions, but hard to find an answer online.

Nicholas L. · Answer

@Richard Davis the seller pays the fee for the buyer's agent so, especially if you're new, it doesn't really make sense not to use an agent as the buyer.

John Morgan · Answer

@Richard Davis

I’ve bought 10 houses like this. I text or email the listing agent my offer. If my offer is in the hunt, then the agent chats with the seller and draft up an official offer if the seller is cool with it. I always go with the listing agents and they’ve been great. Plus they get double commission so they go above and beyond for me.

Kerry Noble Jr · Answer

yes sir.....get it under contract......take it to title or to attorney if in attorney state.....

Niyi Adewole · Answer

HI @Richard Davis

I agree with a lot of what has already been said regarding utilizing a realtor for your first few deals, but completely understand where you are coming from as far as trying to make your deal stand out to the buyer. You could also offer to pay your own realtor fees on the first deal and leverage that realtors expertise to learn the full process and avoid potential missteps.

Alex Deters · Answer

@Kerry Noble Jr I am looking at a property that is off market, hoping they want to sell. Would I just need to do what they have suggested in the comments as far as the contract/sale agreement and then take it to an attorney?

Michael Platte · Answer

Completely understand. I would just hate for you to get burned on the first couple. You could see if the agent would be willing to reduce their commission a little IF that's an issue for the seller. Really depends. Some FSBO sellers work with buyers agents, some don't.

Richard Davis · Answer

Extremely helpful, all.

I have read that buying without an agent can be an effective negotiating tactic for the buyer. "You wanted $100k, but I'm giving you $98k. If your agent agrees to take 4% commission, you'll both be better off than if you sold at $100k through a buyer's agent." My seller's agent offers her client a deal like this whenever an agent-less potential buyer approaches her.

@Kerry Noble Jr Not on the deal that I am considering now, but in the future, hopefully yes.

@Dana Whicker Thank you for this very clear and to-the-point advice.

@Marcus Auerbach @Michael Platte I agree that a great agent would save me trouble and get me a better deal. However, part of my motivation is that I want to learn from the experience of acting as my own agent (something I neglected to mention above).

Michael Platte · Answer

I agree with everyone suggesting you work with an agent (I'm obviously biased as an agent), at least for the first couple transactions since it costs you nothing as a buyer.

Marcus Auerbach · Answer

@Richard Davis - most States have a standard form that you fill out; once the seller has signed it the offer becomes the contract.

You can't really save on fees on deals that are listed, you actually only make the listing agent happy for pocketing double commission. Buyer side commission is always paif for by the seller, so free to the buyer. Most FSBO (for sale by owner - "fisbo") will also gladly pay the buyers agent side, because they are happy to have the deal done correctly, and still save have the fee.

The value of a great agent comes in form of lots of experience. Find one who closes at least 20 deals per year, better 50. Ideally an agent who is also an investor. Best place to look - here on BP "find an agent" in the top menu.

Dana Whicker · Answer

@Richard Davis Emailing an offer is not accepted to most sellers and will not be enforceable. You need a contract. There will be a standard form for your state for the contract that realtors use. You can use that. It's kind of like an offer to purchase that becomes the actual sales contract once all parties have signed it. Google it and you will probably find it for free.

Once all parties have signed it take it to a closing agent. The closing agents in my area are mostly attorneys. In some states all of them are attorneys. I then take the contract to my favorite closing agent/attorney and they then to the heavy lifting from there. Once you do it this way you will be amazed how easy it is.

How to Buy a House with Cash? Step-by-step guide?

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