How to be a successful first time home buyer with no agent

Table of contents

Checklist for Buying a House for the First Time

Buying Your First Home Without an Agent – Common Questions

What happens to the buyer’s agent commission?

How can I be a successful first time home buyer without an agent?

Can I be my own buyer’s agent?

First-time home buyer programs 2021

FAQ

What is the best way to buy a home for the first-time?

Is it hard to buy a house for the first-time?

How long does it take to buy a house for the first-time?

How to buy a home for the first-time step by step

What to do when buying a house first time

When is the right time to buy a house in the US?

When should I buy a house (first time home buyer)?

What are the tips for first-time home buyers?

What programs should I know about as a first-time home buyer?

What are common mistakes made by first time house buyers?

What’s the best type of mortgage for successful first-time buyers?

Are You Interested in Buying a Home Without Paying a Commission? Try Richr!

How to be a successful first time home buyer. If you are like many first-time homebuyers and thinking about how to purchase a home for the first time, you are probably trying to save as much money as possible during the purchasing process. You know that every penny counts, which is why you may be considering purchasing a home without the assistance of a real estate agent. You can use this independence as a negotiating tool when agreeing on a sale price to save 3% on the purchase price. Can it be done? Yes, it definitely can, and the modern technologies available to everyday people like yourself can make it even easier. Let’s take a look at some of the common questions you might have about buying your first home without an agent.

Checklist for Buying a House for the First Time

Without a real estate agent to do the paperwork, you will need to do your investigative work to create your own offer. This can be problematic, as most listing agents want offers on standard FAR/BAR agreements issued for use by Florida Realtors. You will have to find your own online contract to use.

It can be challenging to know how much to offer, particularly when you are new to buying homes, so take advantage of online tools to help you understand the value of homes in the area. The steps to buying a house for the first time are easy to follow.

You should consider making an offer that is a little below the total amount you were preapproved for if you are reliant on a loan. That way, you can negotiate upwards if necessary to close the deal. That’s one of the most essential tips for first-time home buyers.

Once you have chosen how much to offer, you need to complete your offer using a purchase agreement. Richr provides a house buying guide for first time buyers.

You want it to be comprehensive as this is a legally binding document, which means it needs to contain the following information:

• The address of the home you wish to purchase
• Your legal name and the legal name of anyone else that is buying the home
• How much you are offering to purchase the home for
• How you will be paying, e.g. cash/loan, the type of loan you are applying for, e.g. Conventional/FHA/VA, whether is it’s fixed/adjustable, the max rate you can accept, e.g. Current Rate/4%
• All of the contingencies you want in the contract, such as making certain repairs before the sale finalizes, whether the purchase is reliant on the sale of another property
• Any concessions you want from the seller, e.g. a contribution towards closing costs
• Anything you want to be part of the sale, like furniture
• The date you will apply for financing by
• The date you will undertake an inspection by
• Your expected closing date
• The deadline you need the response by

Buying a house in Florida for the first time with no agent, you will also need to submit a copy of any loan preapproval letter. There can also be riders or addendums to the purchase agreement that will need to be completed, e.g. for homeowners/condominium association, for FHA/VA loans, a lead-based paint disclosure for sellers to complete for houses built before 1978, a HOPA form if you are buying in a 55+ community, etc.

If you are buying without an agent, then the seller’s listing agent may assist with these if the seller has one; otherwise, you would do well to hire a real estate attorney rather than rely on online forms as you don’t want to miss anything important.

Buying Your First Home Without an Agent – Common Questions

What happens to the buyer’s agent commission?

Typically, when you hire a real estate agent to help you with your first time home purchase, they get a commission on the sale, as does the seller’s agent. The buyer’s agent and seller’s agent usually split a 6% commission 50/50. This money is deducted at closing from the funds the buyer pays the seller for the home. If the buyer does not use an agent, the seller’s agent will either pocket the full 6% commission or may have agreed to a dual-rate to take a reduced amount if they don’t split the commission with a homebuyer’s agent, e.g. 4%. In those circumstances, the seller will keep an extra 2% equity from the transaction. Buying a house for the first time without an agent can save you negotiating power at the table.

How can I be a successful first time home buyer without an agent?

If you don’t want to be represented by an agent, you may have trouble getting past a listing agent to view a home without them becoming your agent also. If you try and gain access using an online platform like Estatley, they will put you in contact with a local agent who will get you in to view the home for free, but if they submit an offer for you, they become your agent and will be entitled to the buyer’s agent commission. This doesn’t put you in any better negotiating position than if you had started off with a homebuyer’s agent.

Can I be my own buyer’s agent?

You can definitely serve the same role as your buyer’s agent would. Realistically, if you are buying a home without an agent, you are essentially acting as your own buyer’s agent. How to be a successful first-time home buyer with no agent, you will have to search for the home, make an offer, handle the paperwork, and so on. There is one thing that is important to note in this discussion, though. Just because you are serving as your own buyer’s agent doesn’t mean you will get the commission that the buyer’s agent normally would. Legally, only licensed agents are allowed to collect commissions. If there was an agreed-upon commission between the seller and the homeowner, that commission will probably all go to the seller’s agent if you don’t hire an agent. This is why you should hire Richr.com. Using the Richr platform, you can schedule a viewing on a property, submit a purchase agreement using their online offer tool, and keep track of all your documents through to closing. You will then be rewarded by being credited 100% of the buyer’s agent commission as cashback.

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First-time home buyer programs 2021

A program referred to as FHFC ( Florida Housing Finance Corporation) helps first time buyers with loans and grants that assist with the downpayment, which is part of the first time home buyer qualifications.

Eligibility for these programs is based on your FICO score (must be 640 or higher) as well as local income and purchase limits. When you’re buying property, first time buyers have a few options from Florida’s assistance:

• Florida Assist — A loan of up to $7,500 at 0% interest and with no monthly payments. Must be repaid.
• HFA second mortgages — Borrow up to 3%, 4%, or 5% of the loan amount as a second mortgage with a 0% interest rate and no monthly payments. The loan is forgiven at a rate of 20% each year, so after five years, you owe nothing.
• Florida Homeownership Loan Program — Borrow up to $10,000 at a 3% interest rate repayable in monthly installments over 15 years. If you refinance, pay off the loan early, sell, or otherwise transfer the deed, you’ll have to repay the remaining balance in full.

FAQ

What is the best way to buy a home for the first-time?

The answer to this question depends on the person asking it. Most buyers are told that the seller pays the buyer’s agent commission anyway, so the service is free to them. However, if the seller has no listing agent, then there is a homebuyers agent commission of, e.g. 3% on the table that the buyer now has to pay for at the purchase price, for the buyer’s agent to be compensated. Without a homebuyer’s agent, the seller could accept up to 3% less on the purchase price, which is a win/win for the independent seller and independent buyer.

If the seller does have an agent, your 3% bargaining power is only beneficial if the listing agent is willing to reduce his 6% commission to put the buyer’s agent commission % back into the deal. The 3% commission can be thousands or tens of thousands of dollars, and if he puts it back in the deal to get the sale agreed, again, it’s a win/win. The problem is that you cannot guarantee what is going to happen.

This is why www.richr.com launched a new product for buyers. Richr will act as your buyer’s agent to claw back the offered buyer’s agent commission on a listing and credit it back to you at closing. This way, you get up to 3% as cashback on the purchase, rather than it being lost to agents.

Is it hard to buy a house for the first-time?

It is not hard to buy a house for the first time when considering the transaction, but it can be a tough decision when it comes to the emotional side. Buyers are faced with a financial commitment to settling into a community and home. That’s why Richr makes the buying process as seamless as possible when it comes to the paperwork, saving them cash to put towards their renovations or next vacation.

How long does it take to buy a house for the first-time?

If you have a mortgage during the home buying process, it can typically take 3-6 weeks to finalize the deal and close the property.

How to buy a home for the first-time step by step

A brief house buying guide for first time buyers would include:

1. Getting preapproved
2. Starting the home search
3. Finding a home, you love within your budget
4. Making an offer
5. Sign the contract and go into escrow
6. Schedule a home inspection
7. Sign the documents, get the keys and “close”

What to do when buying a house first time

The best way to buy a house for the first time is to start your search long before you need to move. You don’t want to be rushed during the process and begin to eliminate what you don’t want in a home. Buyers’ remorse is a real thing! When choosing your dream home, get up to 2% cashback and benefit from Richr One for your title, insurance, and finance needs.

When is the right time to buy a house in the US?

According to Time Magazine, there is no magic date for being a successful first-time home buyer, but Fall would be the general consensus. “Families have already settled into new homes before the school year started. But the number of properties on the market is still relatively high compared to other times of the year, and sellers can be eager to sell.”

When should I buy a house (first time home buyer)?

The old saying goes the best time to buy a house was five years ago. Historically, real estate has typically held steady. During the pandemic, we watched the real estate market boom, thriving through economic fear. As soon as you’re ready financially, exploring the options of buying a house is a smart move for your future security.

What are the tips for first-time home buyers?

Outside of the typical 1st time home buyers guide, your 1st time buying a house should be an exciting experience, not a stressful one. Here are some tips for staying sane throughout the process:

1. What’s meant to be will be. Don’t stress if you put in your first offer and someone else got the house. Trust that the right home with better neighbors is coming on the market soon and you will be a successful first time home buyer.
2. Clear your schedule as much as possible. Real estate moves quickly, and if you haven’t given your boss a heads up, you may need to step out for showings, you could keep missing great opportunities.
3. As a first time property buyer, you’re going to have a lot of questions. Don’t be afraid to ask them. Richr put everything in one place, so buyers don’t feel overwhelmed. They combined loans, title and insurance all in one.

What programs should I know about as a first-time home buyer?

If you don’t have a down payment on a house, you will need to get a mortgage that requires zero money down. Currently, there are only two types of loans that offer this kind of option. They are USDA loans and VA loans. USDA loans are available to some borrowers if they try to buy a home in specified rural and suburban areas. VA loans are for active-duty military service members and veterans. If you can qualify for either of these programs, you could possibly purchase a home without any money down.

What are common mistakes made by first time house buyers?

When it comes to buying a house for the first time, it can be easy to get lost in action. Here are a few things to keep in mind while going through your home buying process checklist to be a successful first time homebuyer:

• If the listing agent is there when you view the home, stay quiet about your opinions until you’re alone. If they overhear how much you love it, they may be more challenging during negotiations.
• Don’t buy the home the first time you see it. Drive-by it at night to see what the environment is like. Keep in mind you’ll be living here all seasons!
• Don’t max out your budget. Always offer a bit below to leave room for negotiating power and less stress on your monthly payments.

What’s the best type of mortgage for successful first-time buyers?

One of the most daunting tasks of being a successful first time homebuyer is the first-time homebuyer loans and programs. The most common solutions are:

• Conventional 97
• FHA loan
• VA loan
• USDA loan

When finding your dream home with Richr, you’re paired with the best loan options that will suit your financial needs in the years to come.

Are You Interested in Buying a Home Without Paying a Commission? Try Richr!

How to be a successful first-time home buyer with no agent, at Richr, we believe that first-time homebuyers deserve to get the home of their dreams without wasting money on commissions. Our platform takes the difficulty out of being an independent buyer and lets you claw back the buyer’s agent commission for YOU. If you would like to learn more, please explore what we have to offer and get in touch. We are here to help! If you have another property to sell and want to list like a For Sale by Owner, but on the MLS, also check out Richr.com.