Are you tempted to purchase a home on your own? Buying a home without a Realtor involved may seem like an easier and more straightforward proposition, but you’ll quickly find that real estate agents do far more than show property and mark documents for signatures.

Their education, expertise, and industry networking provide multiple benefits to homebuyers. Plus, real estate agents provide a layer of legal protection you won’t have on your side without them. There are several serious risks inherent in any DIY process, especially when selling or buying a new home.

DIY Buyers Beware

Buying a home is a legal and financial transaction. Without the support and expertise of an experienced real estate agent, DIY home purchases put you at significant risk.

5 Major Risks Of Purchasing a Home On Your Own

Here are the five most costly risks of buying a home independently.

1. Contract risks and liabilities

Real estate contracts are legal documents that govern every aspect of the transaction. As a result, real estate agents are educated and trained to be familiar with every type of real estate form. So, while boilerplate documents may exist online, they may not be the best ones for the kind of home or property you’re purchasing.

You should be sure the forms created and amended for your real estate purchases are customized to the property, including the necessary disclosures (death in the home, water damage, environmental hazards/noises, etc.) or contingencies. You also want to be prepared for unexpected costs, like closing costs – which first-time homebuyers rarely know about and repeat buyers may not have paid in the past if they bought in a buyer’s market.

Any disputes arising throughout the sales process are handled per the contract’s terms. So, by trying to draft the documents yourself, you may unknowingly expose yourself to risks and liabilities a real estate agent would have protected you from. Your agent also makes sure that any seller credits or concessions discussed verbally are added to the contract; without that, the seller’s generous offers mean nothing.

2. Lack of negotiation and offer expertise

We’re still riding the wave of a seller’s market here in Volusia County, and many homes sell for more than their listing price. That means real estate agent expertise is essential to negotiations that get you the home you want at the most competitive price. 

If you underbid, you’ll miss out on the house of your dreams; if you overbid, you’ll get the home but may have spent thousands – or tens of thousands – more than you needed to. In the real estate world, agents work together for their clients, meaning the seller’s agent is more apt to share pertinent information with a buyer’s agent to facilitate negotiations (see next).

3. Missing out on agent-to-agent networking perks

Sure, all real estate agents are interested in making top sales for the year, but that doesn’t mean we don’t support one another. In a way, we are all part of the same team, and that camaraderie affects how we communicate with potential buyers.

So, if you go it on your own, odds are you won’t find out the “inside scoop” on the sellers that could lubricate negotiations. But, on the flip side, your buyer’s agent may be good friends or long-time associates with the seller’s agent or agency. This connection yields information that guides our client recommendations that DIY buyers would never have access to otherwise.

4. Buying a home that’s wrong for you

When we meet with prospective buyers we get to know exactly what they want in a home – and what they don’t want. Then, after an afternoon or two of perusing houses in different areas, we curate personalized listings so you don’t waste time looking for or getting excited about houses that are wrong for you. This attunement is invaluable. The last thing you want is to buy a home that’s not right for you.

A slew of research over these past few years shows that as many as 75% of homebuyers have regrets. That tells us they didn’t work with the right agent! The number one regret is purchasing a home requiring more work or maintenance than they’d anticipated. This is precisely the type of mistake experienced Realtors help clients avoid, pushing for home inspections before the COE and being realistic when a house is more labor-intensive than we know our clients want.

5. Ruined relationships when buying a home from a known seller

One of the most common reasons people say they’re buying a home without an agent is because they’re purchasing the home from family or friends. This is a huge mistake; there’s a reason they say not to mix business and pleasure. Real estate transactions are beholden to the same laws, disclosures, inspections, and agreements whether you know a seller or not.

Sometimes, the sellers don’t know the exact parameters of their property lines or historical details until the title search is performed. Any changes of heart, information that shifts interest or purchase prices and funding, or things that come to light after the sale have the potential to strain or destroy relationships. Working with real estate agents supports healthy communication and transparency, keeping longstanding relationships intact.

Southern Exclusive Prevents the Risks of a DIY Home Purchase

Are you debating whether to buy a home on your own or use an agent? Schedule a consultation with Southern Exclusive Realty and learn how we can help you avoid some of these key issues.