Buying a House in California Without a Real Estate Agent

Are you planning to buy a home in California in the near future? Wondering whether or not you should work with a real estate agent throughout this process?

You’ve come to the right place! This guide explains what real estate agents do, the benefits they can provide, and what it’s like to buy a home in California without using an agent.

What Do California Real Estate Agents Do?

Let’s start with the basic job description. By understanding what a real estate agent actually does, you can more easily decide if you need to work with one.

Here are some of the things agents do for home buyers:

• Helps find suitable homes that match the buyer’s criteria.
• Arranges and schedules property viewings.
• Provides information about the neighborhood and local market trends.
• Offers guidance on making a competitive offer.
• Negotiates the purchase price and contract terms on the buyer’s behalf.
• Coordinates with inspectors, appraisers, and other professionals.
• Assists with paperwork and ensures all documents are completed correctly.
• Guides the buyer through the closing process.
• Provides advice on financing options and connects buyers with lenders.
• Helps buyers understand and navigate contract contingencies.
• Supports the buyer in any issues or concerns that arise during the transaction.

The Benefits of Working With an Agent

You’re not required to work with an agent. There is no law that says California home buyers must be represented by a real estate professional. Many buyers choose to navigate the process on their own, and for a variety of reasons.

But there are some significant advantages to working with an experienced agent. As a home buyer, you should carefully consider these advantages before making a decision.

The benefits of using a real estate agent include:

• You’ll have an easier time finding a home. Buyer agents are very good at listening to what their clients want in a home, and zeroing in on a targeted area to find the right property. This can save you time and energy.
• You’ll see the entire market. Some sellers list their homes on popular websites like Realtor.com and Zillow. Others might skip these sites and only use the Multiple Listing Service (MLS). When you work with a real estate agent, you’ll be able to see MLS listings you might have overlooked when buying on your own. You might also find out about homes that are about to come onto the market, giving you a head start over other buyers.
• You’ll make a smarter offer. Making a purchase offer is one of the most important steps in the home buying process, if not THE most important. Your California real estate agent will help you identify a reasonable offer amount, based on recent sales in the area and current market conditions. This can make the difference between having your offer accepted or rejected.
• You’ll avoid contract mistakes. The real estate purchase agreement / contract is an important document that paves the way for the rest of the transaction. It includes the purchase price, the conditions of the sale, the date of the closing, and more. It can also give you legal footing to back out of the deal, under certain conditions. A real estate agent can help you complete this and other documents correctly and to your full advantage.

Buying a Home Without One: Key Considerations

When buying a home in California without an agent, you’ll have to do all of the things listed above for yourself — and probably more. Here’s what your real estate to-do list might look like:

• Find a property that meets all of your needs and falls within your budget.
• Analyze local market conditions to see if the seller’s asking price is reasonable.
• Write up a purchase offer with all of the right clauses and contingencies.
• Submit your offer to the seller or listing agent and wait for their response.
• Negotiate with the seller over the sale price, closing date, concessions, etc.

If you’re comfortable handling these things yourself (while simultaneously keeping up with the demands of your daily life), you might be the kind of home buyer who doesn’t need an agent. But if any of this seems daunting or unfamiliar, you should seriously consider working with an agent.

New Rules Regarding Seller-Paid Commissions

In the past, California home sellers typically paid both of the agent commissions. The listing agent would charge the seller a standard commission (usually 5% to 6% of the sale price) and split that amount with the buyer’s agent.

This structure benefited home buyers. With the commission coming from the selling side, buyers often did not have to pay their own agents directly. They essentially received professional help and guidance without having to pay for it.

But all of that changed in 2024. Due to a legal settlement involving the National Association of Realtors (NAR), sellers are no longer obligated to cover the buyer’s agent commission.

So before you decide to buy a house on your own, without the help of an agent, consider the following alternatives:

1. Negotiate directly with a buyer’s agent.

Going forward, home buyers in California can negotiate a separate commission rate with their chosen agent. This allows them to shop around and consider different service models and rate structures, to find the right fit.

2. Consider flat-fee or discount brokerages.

Some real estate brokerages in California offer flat-fee or discount services for their clients. This is where you pay a set fee upfront (rather than a percentage) regardless of the home’s sale price.

This might be a good option for home buyers who are comfortable with a more limited service approach. For example, if you’re comfortable searching for homes on your own but need help submitting an offer and negotiating, the limited approach might work for you.

3. Find a seller who is willing to pay your agent.

It’s no longer a given that the seller will pay the buyer’s agent commission. But they still have the option of doing so, and a lot of sellers are offering such concessions as a way to attract serious buyers. It’s often included in the listing description, so keep an eye out for that.

In light of these changes, it’s now more important than ever for home buyers in California to discuss commission arrangements up front. This will help prevent surprises down the road.

Even if you’re considering going without an agent, you need to understand the current commission landscape so you can make informed decisions.

7 Key Points to Take Away From All This

We’ve covered a lot in this guide, and it’s all important. So let’s summarize the key points:

• California home buyers can choose to buy a house with or without a real estate agent.
• Agents provide a variety of services ranging from negotiations to legal documents.
• An agent can help you find a home, analyze the price, submit an offer, and negotiate.
• New rules encourage buyers to negotiate the commission directly with the agent.
• Flat-fee or discount brokerages offer limited service for a set fee.
• Some sellers may still offer to cover the buyer agent commission, but this can vary.
• Buyers should understand the current commission landscape before deciding.

Disclaimer: Real estate transactions can vary from one deal to the next due to a variety of factors. So portions of this guide might not apply to your particular situation.