Do I need a broker to buy a house? This is a question that we have to break the rules and answer by first asking a clarifying question.

When using the term “broker” what are we referring to ? The term can be used to refer to a realtor (real estate broker), or a mortgage broker.

In either case, the answer is NO, you do not need a broker to buy a house.
Just like you do not need a lawyer to go to court and fight your case.
Nor do you need a travel agent to book your trip.
You can also say the same thing about a mechanic, to change your brakes.

There is a reason that these professionals are around, and there is value that they provide. The simple answer is, if you see the value that they present, then you hire their services.

In the case of a realtor, the value that a realtor provides is familiarity with the market, the area, the location, other houses currently on the market. What a similar house sold for recently.

A realtor can help you negotiate the best price if they are helping you on the buy side. And on the sell side, a realtor can make sure that you are getting good value, and in both cases you will have your rights protected with the important clauses put into the contracts.

If you are buying a house and the seller has a realtor and you don’t. It is kind of like going to court and asking the other side’s lawyer to help you with your case.

Once there is a realtor involved on one side, there is going to be commission on the table. So the thought or the question about being able to save money on commission – despite what anyone will tell you- especially after 2017 – is out of the picture.

Same thing when it comes t a mortgage broker. If you need a mortgage, you can go directly to your bank.

Your bank makes money on the interest that you pay, and any fees that you incur.

The same analogy as above would apply here, if you go directly to the bank and work with a bank representative who can only offer you that one bank’s products – and is getting paid by that bank to sell their products, it is like going to court and asking the other side to help you with your case.

Put another way, if you are buying a car, and if you walk in to a Ford dealership, where all they have are Fords, and you ask them, “hey, what is the best car for me”, what are the odds that they are going to tell you a Ford?

So, in summary, NO, you do not need a broker – a real estate or a mortgage broker- to buy a house, but really, would it be wise to not have them in your corner?