Welcome to your Essential Checklist Guide

Welcome to your checklist guide to buying a home without using a real estate agent as a buyer's agent. If you are experienced at buying a home, you can follow our step-by-step guide to buying a home without an agent to navigate the home buying journey independently and successfully.

If you read the checklist and decide you need more explanation and more detailed analysis, please look at the Premium Home Buyer Kit to buying a home by yourself.

Get the Checklist Straight to Your Inbox!

By giving us your phone number and email address, you are giving Tim Burrell permission to contact you via email, phone, or text.

First, Find The Money

Shopping for a Loan

  1. Compare Lenders: Research various mortgage lenders, including banks, credit unions, and online lenders.
  2. Loan Types: Understand the different types of loans available, e.g., fixed-rate, adjustable-rate, FHA, VA, USDA. Get a fixed rate loan unless you have a special reason for taking a variable rate e.g. you are not staying in the home for long.
  3. Interest Rates and Terms: Compare interest rates, loan terms, and other fees. Get an estimate of the fees and closing costs so you will know how much cash you need to buy your home.

Getting Pre-Approved

  1. Documentation: Your lender will let you know what you need to furnish with the application. You have to give them everything they want.
  2. Application Process: Some lenders will give you a pre-approval after the loan officer reviews your information. Others will take you all the way through a review by underwriting to get full credit approval, which is more persuasive when you present your financial qualification to the seller.
  3. Understanding the Numbers: Know your budget. Have the lender detail all the monthly payments, including taxes, insurance and homeowners dues as well as all the costs to originate the loan.

What to Look for in a House and What to Avoid

Key Features to Look For:

  1. Good neighborhood: Look at how well maintained the neighboring homes are.
  2. Does it fit your family: The home needs the essential features that you require.
  3. Location: Consider proximity to work, amenities, and public transportation. The old joke is that there are three rules of real estate (1) location (2) location and (3) location.

Red Flags to Avoid

  1. Don’t buy if: the property is on a busy, high speed road or has other transportation issues like train tracks or airport landing pattern. Avoid houses with only one bathroom.
  2. Poor Neighborhood Conditions: Avoid areas with declining property values or high crime rates.
  3. Hidden Issues: Does the area flood? Avoid homes in bad school districts. What else could be wrong with the area and the property?

Research on the Market to Help Negotiate Better

Market Analysis

  1. Comparative Market Analysis (CMA): Compare recent sales of similar homes in the area. You can get automated values from Zillow.com, Realtor.com and Redfin.com as well as recent sales from the tax records.
  2. Market Trends: Study current market trends, including average days on market and price changes.
  3. Supply and Demand: Understand the balance of supply and demand in your desired area. A sellers market is defined as too few homes for sale compared to the number of buyers, which benefits the seller. A buyers market has too many homes available compared to the number of buyers, which favors you.

Research the Paperwork, Get Standard Forms

Paperwork Essentials

  1. Standard Forms: Obtain standard real estate forms from the agent representing the seller. Search the internet for forms used in your state.
  2. Contract Terms: Familiarize yourself with terms like due diligence, earnest money deposit, and contingencies.
  3. Legal Assistance: Consider consulting a real estate attorney to review and explain the documents as well as to write your offer.

Decide What You Want, Needs vs. Wants, Items You Can Correct

Needs vs. Wants

  1. Must-Haves: List essential features like number of bedrooms, bathrooms, and location.
  2. Nice-to-Haves: Identify desirable but non-essential features like a swimming pool or modern kitchen.
  3. Correctable Items: Consider which issues you can fix yourself, such as cosmetic updates or minor repairs.

Research School Districts and School Assignments

Evaluating Schools

  1. School Performance: Research school ratings and performance metrics from the school district’s website
  2. School Assignments: Confirm the school district and specific school assignments for the property using the address locator feature of the school district website.
  3. Future Plans: Consider future school development plans projected by the school district that could cause a school reassignment.

Finding the Houses Available

Searching for Homes

  1. Online Listings: Use platforms like Zillow, Realtor.com, RE/MAX.com and Redfin.com.
  2. For Sale by Owner (FSBO): Look for FSBO listings through specialized websites like ForSaleByOwner.com and local classifieds.
  3. Networking: Spread the word among friends, family, and colleagues that you are house hunting.

Scheduling a Showing

Arranging Showings

  1. Contact Sellers: Reach out to sellers or listing agents to schedule showings.
  2. Plan Visits: You want to concentrate on the home, so try to leave young children with friends and concentrate on the home instead of the chatter by the real estate agent.
  3. Prepare Questions: Prepare a list of questions to ask during each showing. Get the disclosure forms, find out the age of the home and its systems and ask about any “red flags” that point to potential problems.

What to Look for When You Go Through a Property

Property Evaluation

  1. Does it fit?: Compare the home to your list of needs and wants.
  2. Look for bad signs: Do you see water stains, soft spots in the floor or plumbing and electrical that does not work.
  3. Cosmetic Features: Look at the state of floors, walls, and fixtures. Will you need to remodel?

Follow Up Questions

  1. Age of Systems and Roof: Ask about the age and maintenance of HVAC, plumbing, and roof.
  2. Utilities: Inquire about utility costs and efficiency.
  3. Homeowners Association (HOA): Understand HOA rules, fees, and restrictions.
  4. Water & Sewer: Confirm the type of water and sewer systems in place or determine if the property has a well and septic system.
  5. Special Issues with Condos and Townhouses: Check the restrictive covenants. Find out about the financial condition of the homeowners association.

How to Confirm the Value of the Property

Property Valuation

  1. Use your experience: You have looked at a number of homes so you get a feel for the value of this home.
  2. CMA: Use a Comparative Market Analysis (CMA) to compare with recent sales. You can find recent sales in the tax records. Also, automated valuation systems are available at Realtor.com, Zillow.com and Redfin.com. There are some online services that will give you a Broker Price Opinion for a fee.

Learn Contract Terms: Due Diligence, Earnest Money Deposit

Key Contract Terms

  1. Due Diligence: The period to inspect the property and finalize financing. In some states, there is a due diligence payment that is not refundable. 
  2. Earnest Money Deposit: A deposit showing the buyer’s commitment, refundable under certain conditions.

Disclosures from Seller, Lead Paint & Hazards

Seller Disclosures

  1. Required Disclosures: Ensure all required disclosures are provided. They disclose defects.
  2. Lead Paint: Federal law requires disclosure of lead-based paint hazards for homes built before 1978.
  3. Other Hazards: Check for disclosures on other hazards like radon or asbestos.

Home Warranty

Consider a Home Warranty

  1. What It Covers: Understand what systems and appliances the warranty covers.
  2. Costs: Compare the cost of the warranty against potential repair costs.
  3. Terms and Conditions: Read the terms and conditions carefully before purchasing. It is an insurance policy, it does not cover everything.

Negotiating Assistance

Learn About the Art of Negotiation

  1. Read about Real Estate Negotiating: My book, Create A Great Deal, the Art of Real Estate Negotiating is available on Amazon.
  2. Online Negotiating Course: I created a four hour online course to teach Realtors to negotiate better. You can get the same education for only $69 by going to RealEstateNegotiatingAcademy.com.
  3. Personal Consultation: You can contact me through NegotiatingConsultant.com to go over your offer in detail and develop a negotiating strategy. There is an hourly fee for that advice.

Crafting & Presenting Your Offer

Crafting Your Offer

  1. Standard Forms: Use standard real estate offer forms, they are easier for the seller and seller’s agent.
  2. Filling Out Forms: Accurately complete all the forms with your offer details and fill in all the blanks.
  3. Assistance: If you cannot do this yourself, consider hiring a real estate attorney or contact me to help you through NegotiatingConsultant.com for DIY home buying.

Making Your Offer Stand Out

  1. Best Alternative to a Negotiated Agreement (BATNA): Know your best alternatives if negotiations fail. If you have other choices, your position is stronger.
  2. Multiple Offers: Be prepared for a competitive bidding process and have a strong offer ready.
  3. Personal Touch: Consider writing a personal letter to the seller to strengthen your offer. There could be problems with presenting these letters as they could violate the Fair Housing Act.

Responding to Counter Offers

Negotiation Strategies

  1. Evaluate Counter Offers: Assess counter offers carefully and decide your next move.
  2. Adjustments: Be prepared to adjust your offer terms to reach an agreement.
  3. Additional Help: If you have questions, you can contact me through NegotiatingConsultant.com.

Signing the Final Documents, Deliver Due Diligence and Earnest Money Payments

Finalizing the Agreement

  1. Review Documents: Thoroughly review all final documents before signing.
  2. Payments: Deliver due diligence and earnest money payments as specified in the contract documents.
  3. Additional Review: You may want to consult an Attorney or contact me through NegotiatingConsultant.com to decrease the risks of buying without a Realtor or real estate agent.
  4. Hire a closing agent: In some states, the completion of the sale is done by attorneys. In others, it is done by title companies. Hire whatever firm is necessary to complete the sale so you can get started with the process.

Getting the Loan Processed

Processing Your Loan

  1. Submit Documents: Provide the lender with all required documents and the signed contract.
  2. Follow Up: Regularly follow up with your lender to ensure timely processing.
  3. Loan Approval: The lender is the most frequent cause of a delay in closing the sale, so stay in touch regularly to get the loan fully approved.

Due Diligence To Check the Property

Comprehensive Due Diligence

  1. Home Condition: Hire a professional home inspector to thoroughly inspect the condition of the house. You may need to follow up with contractors and other specialists, like Radon or mold inspectors.
  2. Loan Terms: Confirm loan terms and conditions to be sure there are no changes from what you understood at the time you applied.
  3. HOA and Neighborhood: Investigate homeowners association rules, fees, and neighborhood conditions, including reading any restrictive covenants.
  4. School Quality: Verify school quality and assignments.

Inspections

Conducting Inspections

  1. Qualified Inspectors: Hire certified and experienced inspectors, such as members of ASHI.
  2. Specialist Contractors: For technical areas, consider hiring specialized contractors, like plumbers, electricians, roofers or heating & air conditioning contractors if the inspector indicates there are areas that need more analysis.
  3. Hazard Inspections: Perform inspections for hazards like radon, mold, and asbestos if those items come up in your inspection report.

Request for Repairs

Negotiating Repairs

  1. Inspection Report: Request the most important repairs shown in the inspection report. Send a copy of the report to the seller or the seller’s agent.
  2. Repair Requests: Clearly outline and prioritize your repair requests.
  3. Seller Agreement: Negotiate with the seller to agree on repairs or a financial concession. You may prefer having the seller give you a credit instead of doing the repairs so you can have them done to your satisfaction.

Appraisal Issues

Handling Appraisal Issues

  1. Appraisal Results: Review the appraisal report carefully to check how they compared your property to the other comparable properties.
  2. Discrepancies: Address any discrepancies between the appraisal and purchase price.
  3. Renegotiation: Renegotiate the price if the appraisal is lower than the purchase price. The seller does not have to agree to the new price, but may agree to get the sale to close.

Closing the Sale: Title Company or Attorneys

Final Steps to Closing

  1. Title Company/Attorney: Stay in touch with the title company or attorney handling the completion of your sale so that you can provide anything needed.
  2. Title Search: Check the title search to confirm you get clear ownership and marketable title. Get title insurance that insures you as a part of closing the sale.
  3. Settlement Statement: Review the settlement statement before closing and make any corrections necessary.

Confirm Performance with the Contract

Ensuring Compliance

  1. Contract Compliance: Go over all the points in the contract to be sure you have received everything you are entitled to.
  2. Final Walkthrough: Conduct a final walkthrough to ensure all agreed-upon repairs are completed and the property is not in worse condition than when you signed the contract.
  3. Additional Help: If you do not fully understand all the terms of the contract or the closing disclosure, you can contact me through NegotiatingConsultant.com.

Utilities and Other Services Turned On

Setting Up Services

  1. Utility Setup: Arrange for utilities (electricity, water, gas) to be turned on so you will have service available on moving day.
  2. Other Services: Set up other services such as Internet, cable, trash and security systems.

Review Closing Disclosure and Other Documents Before Closing

Document Review

  1. Closing Disclosure: Carefully review the closing disclosure with the person handling the closing to understand all costs and fees.
  2. Other Documents: Review all the documents with the person handling the closing to be sure you get everything you deserve.

Closing, Get Keys, Manuals, Warranties

Completing the Purchase

  1. Signing: The person handling the closing will help you sign all necessary documents at closing.
  2. Payments: Get the closing disclosure before the closing date to find out how much money you need to send to the attorney or title company. In most states, you need to send the money by wire transfer. The people handling the closing will instruct you how to avoid fraud in the wire transfer.
  3. Receiving Keys: Obtain the keys, manuals, garage door openers and warranties. Ask the sellers to leave everything relating to the property, such as plans, touch up paint and information from the builder.

Celebrate!

1. Enjoy the moment: You have your own home where you control everything! Homeowners are 40 times wealthier than renters, so celebrate your success.

After Closing Issues

Post-Closing Steps

  1. Document Storage: Safely store all closing documents. You will need them for tax purposes.
  2. Home Maintenance: Plan for regular home maintenance and address any immediate issues.
  3. Contact Information: Keep contact information for your lender, insurance company, and homeowners association handy.
  4. First loan payment: Check with the people handling the closing about the first loan payment to be sure it is made on time and in the proper manner.

Other Choices For You

envelope

Option 1: Premium Home Buyer's Kit

If you are a first time homebuyer buying your home without an agent, this checklist may not give you enough guidance. Even experienced buyers may want more advice on how to handle each step in buying your home by yourself. The first class guide to buying a home without an agent goes through each step in more detail and gives advice on what to do, and what to avoid, on each step. You can purchase that guide here.

Get Premium Home Buyer Kit
address book

Option 2: Find a Real Estate Agent

You may want to consider finding a buyer's agent who will work with you on terms that are comfortable to you. Remember, Realtors did not cause this mess, it was created by a class action lawsuit. You might be able to buy a home without a real estate agent and have everything work out well. However, it is unlikely that you can protect yourself in DIY homebuying as well as an experienced real estate agent with local knowledge of the area where you want to live. About 10% to 20% of real estate agents in any area sell about 80% to 90% of the properties in that area, so there are a few really exceptional agents in any area. I can connect you with a good agent in your area without any charge to you if you click here and fill in the information about the home you want. The agent will work with you on a buyers agency agreement that is comfortable to you and does not obligate you to do something that is impossible or uncomfortable.

Get Matched With An Agent

Your Path to Homeownership Starts Here

I hope you enjoyed this information. Together we can get through this disruption in how properties are bought and sold. My goal is to get more people to become homeowners by helping buyers get over the hurdles between them and their home. Thank you for being a part of the process of making homeownership more available.