Home Buying in Madison>Question Details

dumbmary123, Home Buyer in Madison, WI

We are submitting an offer on a property without a buyer's agent. If it is accepted what are our steps to get ready for closing. Obviously financing,

Asked by dumbmary123, Madison, WI Fri Apr 4, 2014

Help the community by answering this question:


Since you are asking such a question are you sure you don't want to work with an agent of your own; such representation is generally free; the seller pays commission out of the proceeds of the sale, and if two agents are involved in the transaction the fee is shared....
2 votes Thank Flag Link Fri Apr 4, 2014
Why don't you buy some books and find out? Or, better, become an agent and find out?


You obviously have some reason to pursue this without a buyer's agent. I respect that decision. But along with that decision comes the responsibility--the burden, if you will--to do what a buyer's agent would do. You've gotten some good answers here, but it's impossible to provide complete answers in 500 or so words.

If you don't want to use someone who's an expert at it, then you have to become the expert.

Hope that helps.
1 vote Thank Flag Link Thu Apr 17, 2014
Don Tepper, Real Estate Pro in Burke, VA
All of this for 1.5% of a transaction that didn't close?

If a Buyer's Agent couldn't save you 1.5% in actual money, they could very likely have improved your chances of closing, saved you time, stress and doubt, spared you the slings and arrows of Trulia Advice.

You could spend this weekend doing a home inspection instead of more driving around, open houses and on-the-job training for a job you don't want: Realtor.
0 votes Thank Flag Link Thu Apr 17, 2014
Unless you have a real estate license, you can not get paid any commission. In most areas with a shortage of listings and large amount of buyers, you have to make your best offer up front in order to get a seller to accept it, I think being set in doing it yourself is leaving you short of the benefits of a buyer agent. It does not cost you anything when they do their job of getting your offer accepted, getting you a good sales price and terms and guiding you through each of the steps after the offer is accepted. You can interview agents and chose one you like and are comfortable with. At worst, interview some to see if it will benefit you, if not you can just keep doing what you are doing but at least you will know if there is more help for you.
0 votes Thank Flag Link Thu Apr 17, 2014
The Selling Agent was "splitting the commission" with you?

You mean, the listing contract contained a variable commission reducing their commission if there was no cooperating/buyer agent. That was determined way upstream. The Selling Agent doesn't decide who gets how much commission during a transaction.

The listing agent was happy to describe the 1.5% discount you got as 'reduced commission'. At closing, they got the same contractually due commission.

The most important point is this:


Here is a tip: It ain't about the money you save if you don't get the house you want. Fail.
0 votes Thank Flag Link Thu Apr 17, 2014
Thanks all for the concern. The selling agent was actually going to split the comission with us, which although not common could have worked well. We of course had financing, appraisal, and inspection contingencies. I felt with the tools out there for FSBO buyers we actually did a pretty good job, but the sellers received a higher offer after our was submitted.

Not everyone deciding to go this route is comletely winging it. I should have been more clear, that beyond these basic thing, which we already had squared away, I wanted to make sure there wasn't anything I was missing.
0 votes Thank Flag Link Tue Apr 15, 2014
Agreed ... for such an important purchase, are you sure you want to go it alone without someone who is looking out for your interests? Get yourself a buyer's agent who can assist you with each step along the way, and can help you navigate this transaction so that you don't make any expensive mistakes along the way. Best of luck with your home purchase.
0 votes Thank Flag Link Sat Apr 5, 2014
What the next steps are is completely dependent on the terms and conditions included in the purchase agreement.


What happens if your lender leaves you at the buyers alter?
What happens if your lender creates a low appraisal?
What rights did you waive in the purchase agreement?
Is the purchase agreement you submitted for an 'As-Is' purchase?
What are the conditions for reclaiming your deposit?
When is possession date anticipated?
What are the consequences of missing the closing date?
Is the real estate sold by occupant owner or investor?
Is this an assignable contract?

With out this crucial information we can not even tell you when to start collecting boxes!

Best of success,
Annette Lawrence, Broker/Associate
Remax Realtec Group
Palm Harbor, FL
0 votes Thank Flag Link Sat Apr 5, 2014
Good Morning,

As mentioned below, as a buyer, having a licensed realtor working for you is a big asset. If your decision is not to have a realtor, I hope you have a real estate attorney that is able to write a contract and look out for your best interests.

To answer your question, just a few steps needed before closing is appraisal done on the property and title work prepared. Also, home inspection if needed.

As a experienced mortgage lender with over 6 years experience I would love the opportunity to discuss financing options further with you and show you how I can help your purchase of a home come true. Please contact me at the below phone or email with any questions.

Good Luck,

Nick Nelson (NMLS#384413)
Mortgage Lender
Community Bank of Rockford, A Division of Harvard State Bank
815-289-0880 - Cell Phone
nnelson@thehsb.com - Email
0 votes Thank Flag Link Sat Apr 5, 2014
Wow. Dumbmary123, how ironic! "Submitting an offer" and "getting ready for closing" are lightyears apart these days.

Here are some items to consider: does the house fit your needs? does it compare favorably with others you have looked at? are there items that you may need to update/replace/repair soon after moving in? (water heater, furnace, electrical panel, GFCI outlets, appliances, roof,windows) or are you betting $350 that the home inspection will come out OK? If the home inspection doesn't go well, you will be back here for detailed advice on those next steps. They are important steps, otherwise the words "AS IS" will take on a whole new meaning for you.
If the house is in good condition, in a nice location and in Madison, is your Offer going to be competitive with the others the Seller is sure to receive this weekend? ie. sufficiently attractive offered price, solid down payment, attractive closing date, etc Do you have a mortgage pre-approval in hand? Is it a good idea to submit that with your offer? Does your Offer include a Radon testing contingency? Do you need an appraisal contingency? Do you have a copy of the Real Estate Condition Report? How long has the house been on the market? How much attention is it drawing in the market? How are similar houses selling this Spring? What did they pay for the house? How much do they owe on the house? Are the Sellers under any pressure to sell? How much do they owe? Are they building/leaving the state/getting a divorce?

Maybe you thought of all those things.

Is the house FSBO? Have they done proper disclosures? How did they price the house? Who holds the earnest money? Do you have sufficient time to inspect, resolve issues and waive your home inspection contingency before the deadline expires? How much time is that? Do you have a home inspector? Can you be present for the inspection? What is the Radon concentration that you deem defective? Will you demand $$$ or let the Seller decide who installs and where the mitigation system will be located? ( the system they will never see again)

If the house is listed on the MLS with a Realtor, the listing contract specifies the total commission paid by the Seller to the Listing Agent.This was decided before the house went up for sale. It MAY not be less if you don't have a Buyer's Agent. That would mean the Seller's Agent could be getting "both sides", (possibly twice as much commission) since there is no Buyer Agent involved. I would suggest that maybe having a highly-motivated and well-compensated Listing Agent with a contractual obligation to protect and promote the Seller's interest over yours might not be worth the possible (but not guaranteed) "savings" you are after by doing without a Buyer's Agent. But, since you are here on Trulia asking the most basic of questions at this late stage of the process, that may not have been your motive. Sounds like you don't know what you don't know. This will be exciting!

It is probably too late: it sounds like you have established procuring cause and that Buyer's Agency Train has already left the station. You are not just on your own, you have stacked the cards in the Seller's favor. Don't worry too much: in this market, the Seller already held most of them. There is zero incentive for the Seller to reduce the sale price just because you decided to climb Mt Everest barefoot. They will happily pocket extra money as will their Listing Agent. FSBO Sellers never reduce their price because they didn't pay a Realtor commission, they paid themselves.

If you would take a moment to share with the class just exactly what you were thinking when you decided to make the biggest purchase of your life without the professional guidance of someone with a ethical and contractual obligation to protect and promote your best interests. I know I would love to hear it. Someone who has been thru this process a hundred times and is still learning the best way thru the home purchase maze but can at least guide you through what is guaranteed to be an emotional and stressful process.
0 votes Thank Flag Link Sat Apr 5, 2014
Actually we did think of every single thing you posted here. I guess I should have been more clear, but thanks for the amusing response.
Flag Tue Apr 15, 2014
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