Buying a House in California Without a Real Estate Agent

Many California home buyers consider the option of flying solo, buying a house without the help of a real estate agent. Today, we’ll look at the pros and cons of buying a home in California without a Realtor, and what exactly these housing professionals do for their clients.

What Do California Real Estate Agents Do?

Let’s start with a common question among first-time home buyers: Do I have to use a real estate agent when buying a house in California?

The answer is no. You are not required to work with an agent. There is no law that says California home buyers must be represented by a real estate professional during a purchase transaction. In fact, many people choose to buy a house on their own, without an agent — and for a variety of reasons.

But there are some significant advantages to working with an experienced agent. As a home buyer, you should carefully consider these advantages before making a decision.

The benefits of using a real estate agent include:

• You’ll have an easier time finding a home. Buyer agents are very good at listening to what their clients want in a home, and zeroing in on a targeted area to find the right property. This can save you time and energy.
• You’ll see the entire market. Some sellers list their homes on popular websites like Realtor.com and Zillow. Others might skip these sites and only use the Multiple Listing Service (MLS). When you work with a real estate agent, you’ll be able to see MLS listings you might have overlooked when buying on your own. You might also find out about homes that are about to come onto the market, giving you a head start over other buyers.
• You’ll make a smarter offer. Making a purchase offer is one of the most important steps in the home buying process, if not THE most important. Your California real estate agent will help you identify a reasonable offer amount, based on recent sales in the area and current market conditions. This can make the difference between having your offer accepted, or rejected.
• You’ll avoid contract mistakes. The real estate purchase agreement / contract is an important document that paves the way for the rest of the transaction. It includes the purchase price, the conditions of the sale, the date of the closing, and more. It can also give you legal footing to back out of the deal, under certain conditions. A real estate agent can help you complete this and other documents correctly and to your full advantage.

Buying a Home Without an Agent

When buying a home in California without an agent, you’ll have to do all of the things listed above for yourself — and more.

• You’ll have to find a property that meets all of your needs.
• You’ll have to analyze market conditions to see if the seller’s asking price is reasonable.
• You’ll have to write up a purchase offer with all of the right contingencies.
• You’ll have to negotiate with the sellers, if they don’t accept your first offer.

And that’s not to mention all of the details that need to be handled during the escrow process, leading up to the final closing.

If you’re comfortable handling these things yourself — while simultaneously keeping up with the demands of your daily life — then you might be the kind of person who can buy a home in California without a real estate agent. But if any of this seems daunting or unfamiliar, you should seriously consider working with an agent.

The Seller Usually Pays the Commissions

It’s also important to realize that, in California, it’s usually the seller who pays the real estate agent commissions. While there’s no law that requires this, the normal custom in the state is for the seller to pay the listing agent’s commission, and for that commission to be split with the buyer’s real estate representative. Sometimes the split is 50/50, but it can be more or less.

The key point here is that home buyers can get professional representation without having to pay for it directly. This should be a major consideration for anyone thinking about buying a home in California without a real estate agent.