Here’s How You Can Make an Offer On a House Without a Realtor® in 9 Steps

How do you make an offer on a house without a Realtor or an agent?

Before you even think about making an offer on a house without a Realtor or an agent, you need to figure out how much you can afford to spend. There are a number of factors to consider, and you’ll need to assess your finances and take your priorities into account.

There are several factors that determine home affordability, and each lender can have its own mortgage approval standards when it comes to the buyer’s credit score, income, assets, debt, and liabilities. Lenders can also approve you for different loan amounts, give you different interest rates, and charge varying fees. This is why shopping around for a mortgage is so crucial!

Before making an offer, you should also get a mortgage pre-approval letter. Having a mortgage pre-approval letter before making an offer on a house will show the seller that you’re a serious buyer.

Once you’re pre-approved, it’s time to decide how much you should offer. Start by researching recently sold comparable homes, also called “comps.” Appraisers and real estate agents use them to get the most accurate estimate possible of the value of a home, and you can do it, too!

Arledge recommends finding tax records for homes in the general vicinity to see what other homes have sold for within the past six months. You will want to find properties that match the house in:

• Location
• Size
• Number of bedrooms and bathrooms
• General layout
• Year built (within a five-year range)
• Condition
• Upgrades and finishes

Once you find similar properties, take a look at their sold price. This will give you an idea of what to offer. However, there’s more to making an offer on a house than just the price alone.

Try to determine what else the seller may want as far as the timeline and whether they are asking for other concessions (though when you aren’t being guided by an agent, removing any contingencies is a very risky move). Once you know what the seller wants, you’ll better understand whether you should offer more or less than the asking price.

Consider whether you need an attorney. “It’s always a great idea to hire a lawyer,” says Rajeh Saadeh, managing attorney at The Law Office of Rajeh A. Saadeh in New Jersey. “This is usually the biggest purchase and sale someone makes in their life. It’s a very small price to pay to have legal representation in a transaction that big.” In some states, an attorney will oversee the closing of the sale instead of a title company. If you’re going it alone, regardless, it’s a good idea to think about hiring one.

Remember, your offer becomes your legally binding purchase contract.

Step 1: Land on your offer price

You’ll want to land on a price that’s competitive without overpaying — but there’s more to it than that. While price is certainly important to sellers, there are other factors that they might consider. Try to leverage those if you are going below their asking price.

You might be able to go below the asking price during a solid buyer’s market or if the house is overpriced compared to recently sold comps. You can also consider going lower if you’re prepared to forgo some contingencies in your offer (though understand that doing so can present major risks to you as a buyer).

Consider going low if the property has been on the market for a while or if the seller has already reduced their asking price.

In a hot market, it might be a better idea to go over the asking price. Be careful with this one, though. “You really need to figure out how to be competitive without overpaying because it’s easy to get swept up in the frenzy of bidding wars,” Arledge says.

Step 2: Document the details

Where is the house? What is the legal address? Who are you? Who is the seller? You need to have the details prepared, and buying a house requires extensive documentation.

Step 3: Include contingencies

Contingencies are certain conditions that must be met before the closing date and typically relate to financing, inspections, appraisals, and home sale. However, there are other contingencies that can’t be negotiated, such as those related to title and zoning.

Financing contingency

Considering 87% of buyers financed their home purchase in 2023, a financing contingency is very common.

This contingency gives the buyer the ability to secure a mortgage to purchase the property. If the buyer cannot obtain financing within the timeframe listed in the purchase contract, the contract may be terminated with no penalties.

Inspection contingency

A professional home inspection gives the buyer the opportunity to uncover any potential problems with the house before purchasing. An inspection contingency also gives the buyer a timeframe to have an inspection before the contract becomes binding.

Having these details provides the buyer with room to negotiate on repairs, price, or even walk away from the sale entirely.

Appraisal contingency

A real estate appraisal is a valuation of the property by an appraiser — often required by mortgage lenders. An appraisal contingency allows the homebuyer to back out of the contract if the purchase price is more than the appraised value.

Home sale contingency

First-time buyers usually don’t have to worry about this one. With a home sale contingency, the transaction is contingent on the sale of the buyer’s home. This protects buyers from being responsible for two mortgages if their house fails to sell.

Title contingency

During a home purchase, a title search is done to ensure that the seller is the property owner with full rights to sell.

A title contingency allows the buyer to terminate the contract if the title search reveals any issues, such as a lien against the property. Liens are generally tied to debts, unpaid taxes, bankruptcy, and more.

Zoning contingency

If you’re planning to change the use of the property other than for residential purposes, you need to make sure that it’s permitted by local zoning ordinances. You don’t want to buy a property to run your business if the local governing body will never grant approval for that location.

How a top agent can help you here: Contingency clauses are there to protect your interests as a buyer, but they can be unpopular with sellers. A local agent will be able to help with this balancing act.

Additionally, certain parameters of contingency clauses can vary by state, and having an expert who is familiar with local real estate law will help. “There has to be language in there to protect you,” Saadeh says.

Step 4: Offer earnest money

Earnest money shows the seller that you’re serious about buying. This deposit can be a percentage of the purchase price, usually between 1% and 10% of the home’s purchase price, or a flat amount; the standard amount varies depending on where you live.

Generally, the earnest money is held in an escrow account. Without an agent, Arledge recommends figuring out who will hold your earnest money ahead of time. “You really want it going to a third party who is not someone who has skin in the game when it comes to this transaction,” she says.

The earnest money is negotiated and included in your paperwork as part of your offer, Arledge says.

Step 5: Make your ‘asks’

Now it’s time to make any additional requests or “asks” you have on top of contingencies.

Do you want the seller to cover closing costs? A warranty for appliances and house systems? Don’t forget to put these in writing. Are you drawn to any particular furniture in the home? You can add a consideration when making your offer.

You can ask for anything you want when writing your offer; however, you’ll need to negotiate with the seller. And don’t be surprised if you receive a counter-offer.

Step 6: Lay out the timeline

Your offer needs to have deadlines, and the schedule should be negotiated and laid out in your purchase contract before you make the offer. Each offer and counter-offer should also come with a set deadline for a response.

Think carefully and take these deadlines seriously — missing these deadlines could result in losing your earnest money.

Step 7: Include any addenda

An addendum or rider is a term added to the end of the contract, based on unique circumstances to protect your interests.

These typically include items such as state-mandated seller disclosure forms (these vary from state to state), inspection requirements, and possibly even contingencies that you are requesting as the buyer to ensure you can use the property the way you intend.

If you aren’t using a real estate agent, then you’ll want someone to look over your contract and ensure that they’re helping with any addendum that’s needed to close loopholes and protect your best interests as the buyer. An attorney is an excellent choice.

This is also the time to ask whether the house is in an HOA and to inquire about all of the rules and regulations if it is. (You might be doing that in an addendum!)

Step 8: Deliver the offer to the seller

Once your offer is complete, it’s time to deliver your offer to the seller. The seller may prepare a counter-offer, which will then be passed back to you for negotiation. Review the details of the counter-offer carefully.

The seller may counter your offer with a higher purchase price, or ask you to remove some or all of the contingencies.

Step 9: Sign the agreement

Congratulations! You’re under contract, or you can negotiate the counter-offer.

Should you make an offer on a house without an agent?

While it’s possible to make an offer on a house without an agent, it’s not advised unless you’re familiar with local real estate law and practice.

“If you don’t have a full grasp of what is typical for an area, how the real estate law works for that state, and how to overcome potential obstacles, it’s a big risk to enter into a binding agreement without the help of a local agent,” Arledge says.

She also added that finding a buyer’s agent who has been in the business for five, 10 or even 20 years is invaluable. “Finding the house is honestly the easy part of our jobs. It’s everything that happens between finding the house and closing where we spend most of our time,” she explains.

Making an offer on a house, even without an agent, is still a legally binding contract. Think hard about whether forgoing representation is actually worth the potential hazard should something happen.

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