Yes, you can buy or sell your home without using an agent. Maryland does not require you to use a real estate professional to buy or sell your home. Before making the decision to go it alone, it’s important to consider what having an expert on your side can do for you in your homeownership journey, and why so many people make the choice to sign a written brokerage agreement with a REALTOR® they trust.
Buying a home
Searching for a Home
Looking for a home is more than just attending open houses; you need to consider your wants and needs in a home, like location, schools, and much more to narrow down the huge list of possible homes into a manageable one most likely to be your next home. It will need to be updated regularly as homes come on or go off the market. A REALTOR® works with you to determine your preferred style and unique needs, manages that list for you, sending you updates when homes come on the market and making sure you stay informed. Without a REALTOR®, staying on top of the market trends and changes is more than a hassle – it’s hours of work every week just to keep a pulse on what homes may be right for you.
REALTORS® have access to the more reliable data through the MLS, helping them help you find your new home with accurate expectations for the price, square footage, number of bathrooms, and any other information given by the seller. As a consumer you have access to some services that show home information, but they are often not as reputable and can have incorrect or out of date information.
Home Walkthroughs
When it comes to looking at homes, you can get a feel for a space, walk around the exterior, and get an idea if it’s the home for you. You are the best expert on what works best for you, but without a REALTOR®, you may miss some key warning signs that may require further investigation or other details that could impact your decision making.
Making an Offer
Making an offer on a home generally takes into account many market factors, from the listing price of the home to the larger market. Your REALTOR® is skilled in developing an offer backed by market data and years of experience to help you put together your best based on your comfort level and financial situation. Making an offer without a REALTOR® may leave you offering more money than the fair market value of a home or submitting offers that may be passed over in favor of other stronger ones.
Let’s not forget the forms! REALTORS® have accurate and up-to-date forms that adhere to current Maryland and local laws, safeguarding you and your investment as you begin the next step of the homebuying process.
Selling a Home
Advertising Your Home
There are websites that you can use to advertise your home for sale. These sites, however, do not do the work of a REALTOR®, such as verifying information with the other party and passing on credible offers and expert advice. Instead, you may be left responding to questions in conversations that lead nowhere, or sorting through offers from buyers and buyer agents, trying to figure out which is the best offer for you. REALTORS® use credible, “multiple-listing” sites such as Bright MLS in Maryland to advertise their listings in a way that is compliant with local and state laws as well as most likely to attract a buyer in the current market.
Preparing Your Home
With or without a REALTOR®, you’ll need to prepare your home for showings, open houses, and photos. It can be a lot of work, but a REALTOR® can give you the best tips for how to attract buyers. They will highlight what will make the most impact, from upping your curb appeal with fresh flowers to clearing out unnecessary items to make the space feel bigger.
Choosing an Offer
In some situations, you may have to choose between multiple offers at the same time. You know the offer that you’re looking for in an ideal world, but key differences between offers, from price to settlement date, can change how appealing they may be to you. Your REALTOR® can help you understand the pros and cons of different offers and what they would mean for your home journey. For example, if you’re still looking for your next home, more time before settlement might work for you; but if you’re waiting on a contract to buy your current home to get to settlement on your next one, a quick turnaround from contract acceptance to settlement would be better. There are a number of factors that would change what the best offer is for you; a REALTOR® will give you insight into what your ideal offer would include.
Buying and Selling a Home
Negotiating
Sometimes, you don’t need to negotiate beyond the initial offer made. Often, counteroffers are made and countered again. The back and forth with the agent, or buyer/seller if they are unrepresented, is a common part of the homebuying process that REALTORS® handle every day.
People are sentimental about their homes to the point that negotiating can feel incredibly personal and leave you in a difficult position to negotiate the final offer while still maintaining your chance of purchasing or selling the home. REALTORS® know the best strategies to help you land an accepted contract while doing everything they can to help you secure the best terms.
Getting to Settlement
Once the offer is accepted, there are many more steps to be taken before reaching the settlement table. This is the time you generally finalize your loan, get an appraisal, order inspections, negotiate possible repairs, complete the final walk through, and more. REALTORS® know this process forwards and backwards and they know the common pitfalls that can delay your settlement or cause other issues for you. They may also know other professionals they have worked with and can recommend, including inspectors and lenders (but you are never obligated to use a recommended professional). Without a REALTOR®, these steps can quickly become overwhelming, setbacks can leave you with less information about the home, and your settlement could be delayed, opening an opportunity for further issues.
Compensation
A REALTOR®, like every other professional, values fair compensation for their work, time and expertise. Compensation of a REALTOR® is not set by any law or membership organization. Compensation is fully negotiable. You and your REALTOR® will discuss compensation so you have a full understanding of how it works and how much you may pay at closing when you sign the Brokerage Agreement (which under Maryland law you are required to sign before a REALTOR® begins any work for you, like showing you a home).
Learn more about compensation in our video series! You can also learn more about negotiating a buyer brokerage agreement and how your REALTOR® gets paid in our blogs.
Choose What Works for You
Using a REALTOR® does cost money. Some consumers can buy or sell their home without one. What’s important is to understand what you may or may not know and the full value of having a REALTOR® to guide you through the process. You can talk to multiple REALTORS® before you begin your journey to find one that you feel comfortable with. You won’t need to sign an agreement until you ask the REALTOR® to start working for you so you can take your time to make your decision.
Many homebuyers and sellers, new and experienced, choose to work with a real estate professional who provides consistent support and loyalty in one of the biggest transactions they ever make.
Working with an agent means you’ll need to sign a written buyer agreement that you can negotiate, before the agent can do any work for you, like show you a home.
There are many different professionals to choose from, so be sure to ask questions when interviewing a potential agent and understand the difference between different types of agents (and why working with a REALTOR® may be in your best interest).
If you’re looking to market your home as ”For Sale By Owner,” be sure you’ve learned what you need to know to keep yourself in line with the law and the local market.
