Did You Know You Don’t Need a Realtor to Buy or Sell a House?

Hiring a realtor is not legally required when buying or selling a house in Maryland. While realtors offer valuable services, with the right preparation and legal support, you may be able to handle the process on your own. By working with a trusted title company like Oliveri & Larsen’s First Colonial Title & Escrow, you can handle the transaction and save significantly on commission fees, paying less than the traditional realtor commission.

Buying or selling your own house without a realtor can be an empowering and cost-effective experience. However, it also comes with added responsibilities and risks. Here’s a breakdown of the pros and cons:

Pros:

• Cost Savings: Realtors typically charge 5% to 6% commission on the sale price, split between the buyer’s and seller’s agents. By handling the transaction yourself and working with a law firm or title company, you can keep more of your equity or negotiate a better price, often paying significantly less than a full agent’s commission.
• Greater Control: You decide how to market your property, schedule showings, and negotiate terms directly, without relying on an intermediary.
• Streamlined Communication: Direct discussions with buyers or sellers can reduce delays, miscommunications, and misunderstandings that sometimes arise when relaying information through a third party.

Cons:

• Complex Legal Requirements: Real estate transactions involve binding contracts, disclosure obligations, and deadlines. Without proper legal guidance, you risk delays or disputes.
• Limited Market Reach: Without access to the MLS or a realtor’s network, it can be harder to gain exposure. You may need to use third-party listing platforms or a flat-fee MLS service.
• Pricing Strategy: Determining the right price requires access to market data and experience. Overpricing may deter buyers, while underpricing could lead to financial loss.
• Time Commitment: From managing showings to preparing contracts, you’ll need to invest significant time and effort.

What Are the Legal Requirements for Buying or Selling a Home in Maryland?

Even if you don’t use a realtor, you must comply with Maryland’s real estate laws to ensure a valid and enforceable transaction. Key legal requirements include:

• Property Disclosure or Disclaimer: Sellers must either disclose known defects or use a disclaimer statement indicating the property is being sold “as is.”
• Lead-Based Paint Disclosure: For homes built before 1978, sellers must notify buyers of potential lead hazards and provide the opportunity for a risk assessment.
• Written Sales Contract: All agreements must be in writing and include the purchase price, contingencies, financing details, and a proposed closing date.
• Fair Housing Compliance: Discrimination based on race, religion, sex, disability, familial status, or national origin is strictly prohibited under state and federal law.
• Zoning Compliance: Buyers should verify that the property meets applicable zoning and HOA rules.

What Documentation Do I Need for a Maryland Real Estate Transaction?

A for-sale-by-owner (FSBO) transaction still involves detailed documentation. Common documents include:

• Purchase and sale agreement
• Seller property disclosure or disclaimer
• Lead-based paint disclosure (if applicable)
• Deed and title documents
• Mortgage or financing paperwork
• Home inspection reports
• Utility bills and tax records
• Settlement statement (HUD-1 or ALTA)

What’s the Process for Buying or Selling a Home Without a Realtor?

The transaction process is similar to a traditional sale, but you’ll take on more responsibilities.

If selling:

• Clean, stage, and repair the home to increase appeal.
• Research market data to set a competitive price.
• Advertise the home online and in print.
• Schedule and host showings.
• Negotiate directly with potential buyers.
• Provide required disclosures.
• Coordinate inspections, repairs, and closing documents.
• Work with a title company or lawyer to finalize the sale.

If buying:

• Get pre-approved for a mortgage.
• Research listings and neighborhoods.
• Schedule showings with sellers.
• Negotiate price and contingencies.
• Review all disclosures.
• Schedule an inspection and finalize financing.
• Coordinate title search and closing.
• Sign documents and receive the keys at closing.

In Maryland, closings are typically managed by a title company or lawyer. If you’re not using a realtor, it’s your responsibility to coordinate the closing and ensure all legal steps are completed.

Work with an Annapolis Real Estate Lawyer at Oliveri & Larsen to Save Money and Protect Your Interests

The experienced Annapolis real estate lawyers at Oliveri & Larsen can guide you through the process. From preparing contracts and disclosures to coordinating your closing, we make it easier and more affordable to buy or sell your own home. Call 410-295-3000 or contact us online to schedule a consultation. Located in Annapolis, we serve clients in Ocean City, Anne Arundel County, Baltimore County, Baltimore City, Calvert County, Harford County, Howard County, Queen Anne’s County, St. Mary’s County, Worcester County, Kent County, and the upper and lower Eastern Shores of Maryland.