Hiring a realtor is generally the first step we take when we decide to buy a home. A real estate agent assists with the buying process and ties loose ends to ensure a successful deal. While there are many advantages of hiring a realtor, many home buyers still choose to buy a house without a realtor in Canada. If you are one of those, this is the place to be at.
We know home buying can be stressful and doing that without professional help can get even tougher. For your ease, we have compiled a list of benefits, risks and tips. Grasp all the information and then decide if you want to avoid hiring a realtor.
Benefits to Buy a House Without a Realtor in Canada
When buying a house, a lot of people place their trust in a realtor without even thinking about the perks of not hiring one. For those willing to take the plunge, here are some benefits you should know:
As per rule, the seller usually pays the buyer’s agent approximately 3% of the house listing price. If the buyer doesn’t have a realtor, the seller won’t have to pay this amount. This means they will be open to agreeing to a lower offer made by the buyer.
You will have complete control over the buying process. Though hiring a realtor in Canada sounds like a good idea, you should not forget that realtors work for multiple clients at once. This implies that you may not get their full attention. It is better to communicate with the seller directly than through a realtor. It will save you time and allow you to learn more about the seller.
Become a Pro
When buying a home without a realtor in Canada, you will come across a lot of online resources. Take help from those to discover what’s available in the market and comprehend the negotiation process. By the time you close a deal, you will become a pro at handling everything that goes into buying a home. This experience will help you with other real estate deals whether commercial or residential in the future.
What to Remember When Buy a House without a Realtor in Canada?
Canada is an expensive but real-estate rich country. Whether you’re looking for an apartment or a luxurious townhouse, the options here are plenty. However, if you’re getting to the buying process without seeking professional help, here’s what you need to keep in mind:
As experts, Canadian realtors have access to a broad range of property listings. They are well aware of which house is up for sale and what amenities are available. Their familiarity with the local markets is something you’d miss out on if you choose to buy a house without a realtor. Moreover, if you wish to buy a certain type of home, a realtor will help you find it quickly. They understand client needs and direct them towards the best possible options.
Realtors are professional negotiators. Buying a home without one means you will have to take care of the negotiation process yourself. The process involves deciding how much to offer and how to counter the seller’s offer. Lack of expert assistance may lead to you overpaying for a house or losing out on conditions that you want.
Plenty of Paperwork
No matter which part of the world you’re buying a home in, you have to deal with a lot of paperwork. From purchase offer and inspection report to mortgage note, deed of trust and more; you have to manage it on your own. Hiring a real estate agent would have helped you avoid all the hassle.
Lack of Connections
Buying a home requires dealing with various third parties. With a realtor, you don’t have to worry about that as they can direct you to the right experts. But without a realtor, you may struggle to find reliable home inspectors and contractors. This could make the buying process difficult and time-consuming.
A purchase contract comes with a lot of information. It contains pages and pages of data that may go over your head because of the legal language they’re written in. A real estate agent would have helped to understand everything. Not having one will make things a lot more complex to understand.
Incomplete Information Disclosure
There’s a chance that the seller may not provide you with full information disclosure. Even though you are legally entitled to full disclosure, some sellers take undue advantage of buyers without a realtor. They provide them with incomplete information or sometimes no information at all until requested.
Buy a house Without a realtor in Canada, you may not be able to identify problems in a house. A professional’s eye looks at every nook and corner from leaky roofs to broken door knobs. Sure you can get a checklist of things to inspect from the internet but you cannot deny the experience of an expert. They’ve been in the business for long enough to recognize hidden problems in a house within minutes.
How to Buy a House without a Realtor in Canada – Quick Tips
Now that you’ve read the benefits as well as the risks attached to buying a home without a realtor, check out the points below. These tips will prepare and help you close a successful deal:
Research is Vital
Compare similar homes and the price at which they were sold before you make an offer. Aside from active and inactive listings, ask around neighbors. They can give you a clear picture of the current price trends and some inside information you should be aware of.
Don’t Forget Home Inspection
Take suggestions from friends, family and acquaintances for a home inspector. Find someone who has significant experience and is reliable.
Getting a Pre-Approval Helps
Getting a mortgage pre-approval or pre-qualification is the best way to earn sellers’ trust. They get a sigh of relief knowing that you have a lender. A pre-approval also helps you negotiate better.
Prepare for Negotiation
Your offer should have some contingencies. It puts you in a better position in the future. Take help from a lawyer to ensure things go your way and save money. A real estate lawyer may charge a fee but will make the negotiation process easier.
Get a Title Insurance Policy
Title insurance is one of the most important documents when buying a home. You need to buy it on your own or let the seller pay for it. The insurance should not have any encumbrances or liens.
If you’re buying a home for the first time, we’d recommend you hire a realtor in Canada. However, if it’s not your first time and you are confident enough to handle the complexities, go for it. We tried providing as much information as we could and would be happy to help you out even more. Take a look at the FAQs below for any questions or concerns you may have.
You May Also Read
Yes, purchasing a home without a Canada real estate agent is less costly. It saves you from paying unwanted commissions.
Yes, you can view a house without an agent. In Canada, many home sellers conduct public open houses which you can attend without an agent.
Yes, if you like a particular listing and are interested in learning more about it or scheduling a visit, you can surely contact the listing agent directly. You do not need an agent for it.