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Everything you ought to know when buying a house without a realtor

“Always pick your yard based on your Summer lifetstyle.”


June 21, 2018 - Karl Yeh

Are you considering buying a home? Do you actually need a real estate agent to make the purchase? In this episode, we discuss if you should buy a house with a realtor and benefits of using one. We explore how to buy a home WITHOUT using a realtor and the role of the sales team if buying a new home. 

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Karl Yeh:

Hi, everyone. I'm Karl Yeh.

Welcome to another Homebuyer's School video, a channel where you get the latest strategies, tactics, and tips from home buying experts.

Remember, if this is your first time on this channel and you want to get these strategies from the experts, make sure to hit the subscription button below, hit the little notification bell so you don't miss anything.

Today, I'm joined by [00:00:30] Cory McDonald, Community Manager with Brookfield Residential, and the topic we're going to discuss is:

Can you actually buy a house without a realtor?

Cory, do I need a realtor to buy a house?

Cory McDonald:               

They're not needed.

It's a common misconception that you need a realtor in order to purchase a home.

I will say that it does help, especially if you're a first-time home buyer because they have a lot more experience in the market, they know great questions to ask regarding the community, the previous home buyer, what factors are going to potentially [00:01:00] affect resale value down the road when you're trying to resell.

They are a very useful tool but they're not 100% necessary in buying a brand new home.

I would even go to say specifically with a new home build that sometimes the sales associate or the sales team there, they're working on behalf of the customer to get them into the home that best fits their needs.

Karl Yeh:                             

Why would I use a realtor if I wanted to buy a house?

Cory McDonald:               

Again, when you're a first-time home buyer, it's a simple fact that you don't [00:01:30] know what you don't know, and that's what you're basically using when you're getting a realtor is that they have the experience and maybe a wider knowledge base as far as the questions to ask about the new home.

If there is any issues with the build, if they're an older and if it needs more maintenance than you really want to put into a brand new purchase, the community and the benefits of living in one community versus another.

They're very helpful in helping narrow down your search a little bit [00:02:00].

Karl Yeh:                             

Do I have to pay the realtor if I'm buying a house? How does that work?

Cory McDonald:               

Great question because that's something that a lot of people may be shy about asking.

When you're bringing a realtor into a brand new builder to buy a new home, it's actually the builder that pays commissions for, almost a thank you for, "Thank you, Mr. Realtor, for bringing this customer into our homes and for showing them the benefits of buying a brand new home."

So we pay the commissions for that realtor, whereas if you're going a resale [00:02:30] home, it's actually the person that's selling the home through their realtor, they would be paying the realtor's commission. So when looking for a brand new home, you don't have any fees associated with using a realtor.

Karl Yeh:                             

If I wanted to buy a resale home, if I was a seller, I'd not only have to pay my realtor, but I'd also have to pay the other realtor as well? Or ...

Cory McDonald:                It's worked into your realtor commissions, that's correct.

Karl Yeh:                              Okay.

Cory McDonald:               

So the fees that you're paying your realtor for listing the home also covers the fees for [00:03:00] the purchasing realtor.

Karl Yeh:                              So it isn't like, you don't get double dipped.

Cory McDonald:                Correct.

Karl Yeh:                              So that would really suck.

Cory McDonald:               


No. But again these are things that you'd want to be knowledgeable about, so asking your realtor what are the commission rates for when selling your home.

Also very important to know that if you are purchasing a brand new home and you're working with a realtor what the commission rates could possibly be for that realtor.

Karl Yeh:                             

And remember we do have a video on how realtors get [00:03:30] paid, if you want to take a look.

If I didn't want to use a realtor and I wanted to buy a house, buy a new home, how do I go about doing that?

Cory McDonald:               

Buying a brand new home, a lot of the presentation centers they'll have a lot of information on the homes that they have available.

They'll be very knowledgeable about the community and different homes that could fit your needs.

If you're looking for something quicker, MLS, the Multiple Listing Service, you can [00:04:00] look at online for what's available for quick possession homes.

A lot of builders will also advertise some of their quick possession homes or their feature homes on their websites.

So again, taking a little bit of time and maybe researching online different builders, or even on MLS, some of the homes that are available within the time frame that you're looking at your home.

Once you maybe narrow down a community that you really like, finding the presentation center for that new build and then having those discussions.

It doesn't cost anything to come visit a presentation center and to go look through a show home, so [00:04:30] you're more than welcome to explore the space and have a look through.

And then the sales team were more than happy to answer any questions you may have about the home specifically or the builder or the community that you're looking to purchase in.

Karl Yeh:                             

So obviously if you're planning to buy a house without a realtor, you have to do a little bit more research.

Cory McDonald:               

It doesn't hurt to do a little bit more research. Again, you want to be able to cover all your bases.

But again, a great sales team will be able to help answer all of your questions and get you into the right fit as well.

Karl Yeh:                             

Yeah. And that's what [00:05:00] they're there for, right?

Cory McDonald:                100%.

Karl Yeh:                             

So would you say that the sales team kind of replaces the need for a realtor, if you're buying a new home obviously?

Cory McDonald:               

There's benefits of using a realtor, but I think, yes.

The sales team definitely does work on the behalf of the purchaser in getting into the right home that best suits things.

Karl Yeh:                             

Awesome. Well thank you very much for joining us.

The question I have for you is:

Did you use a realtor when buying your first home, and what was the experience?

Let us know in the comments section below.

Thank [00:05:30] you very much for joining us and we'll catch you next time.


Your turn:

Let us know if you have additional realtor or home buying questions that we can answer by submitting them in the comments section below. 

Homebuyer's School publishes new content weekly so subscribe or check back regularly for the latest information, strategies and tips from homebuying experts.  

About Cory McDonald:

Cory has been working for Brookfield Residential for over 5 years and has had the opportunity to sell  in several beautiful communities around Calgary and Cochrane. He has experience selling everything from starter town-homes to move-up homes within the company. Cory originally grew up in Calgary and after a short stint living in the greater Vancouver area, he returned home for a better quality of life to raise his family.

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