When a realtor makes a sale they get a high commission. The seller usually pays the commission, but the cost may be passed onto the buyer indirectly. Real estate lawyers charge their customers by the hour. Do you need to work with a real estate agent or a lawyer to purchase a home?
Advise of the Law
Real estate laws will vary by state. The assistance of a real estate agent is not legally required but they can help with the preparing a purchase contract. In some states only the lawyer is allowed to prepare the documents for home purchase, do the title search, and agree to close the deal.
Why Hire an Agent
Buying a home is a complex process and many people find this easier with the assistance of a real estate agent. There is a lot of paperwork to fill out and having advice from someone inside the industry can help. Other parts of the home buyer process need to happen in a short period of time. Inspectors need to be hired, negotiation over repairs and price, and keeping relations with the sellers via their agent, along with other topics. This is all routine for the agents. Experience agents can recommend good inspectors, mortgage brokers, and make can the experience easier. They know what appropriate behavior for agents and clients are in their region.
One of the biggest reasons to hire your own agent is that you will have representation and the seller’s agent will not take over the entire process. The seller’s agents may pressure you to allow them to represent you and the buyer. This is known as a duel agency relationship. This often benefits just the seller. Sellers’ agents may not always make it clear that they are working for both parties. If there is one agent involve it can be taken that they are working for the seller. It is better to work with your own agents , an expert assert, or no agent at all then to work with a duel agent.
Stay in Control
You are the only person that knows what you want in a home. An agent can scout out homes for you and scan the listings, but they do not understand your exact needs. They may not take you to “for sale by owner” listings. There are ways that you can find your dream home on your own.
Even if you work with a lawyer or an agent it you should educate yourself on the home buying process. Maple Ridge Realtors on Facebook believes that you should learn about the market value of homes that are selling in the same area you can protect yourself against an agent that would want you to put in a high bid for a home. This will reduce the stress when you are asked to sign several documents in the home buying process.
Reasons to work with an Attorney
Except in states where a lawyer is required the average real estate transaction does not require a lawyer. Many transaction are standard and many people will say exactly what they are looking for in the purchase and all that is needed is a couple of signatures.
If legal issues happen and the real estate agent and the real estate agent is not able to answer the questions or the issue the lawyer may be needed for help. An agent can help with negotiation issues but they cannot answer all legal questions. For example if the new home has an illegal in-law unit that has a tenant living there is the buyer able to evict the person in order to rent it to someone else. Only a lawyer can answer this question. If you would like to rent the home for an extended time period before purchasing it are you able to do so? This will require an additional cause in the lease. If there is unusual language in your contract or you are concerned about some of the terms let the attorney look over the documents.
How the Real Estate Agent Gets Paid
Real estate agents are paid on commission and not a salary. They get paid only after the home buying transaction is complete. They do not get paid if the buyer loses interest or cannot get a mortgage to close the deal. The seller usually pays the commission to both agents which is around five percent of the sale price that is then split between these two agents. This percentage may vary. For example a seller may get a lesser percentage if the home is very expense. In probate court costs need to be paid as well. Some buyer’s agents have been known to offer the buyer a percentage at the time of closing.
There are some variations on these commission arrangements. A buyer may hire an agent and pay their commission. Less common an agent may offer to work for an hourly fee rather than a full commission. You may then ask the seller to bring down the price of the home. Discount and rebate brokers are work but they may provided limited service or make work over the internet. Their commission may be as low as one percent.
Agents Working on Commission have a Conflict of Interest
Even an agent that only works for the buyer and not the seller has their own financial interest in the closing. While an experienced agent will not push you into anything and will not push you into making a bid on a home that you do not love. They may recommend that you an inspector that may overlook some issues. When looking to find a reliable agent see Choosing Your Real Estate Agent.
How Attorneys are Paid
Lawyers often charge by the hour. Their fees can range from $150 to $350 per hour. Attorneys may charge a flat fee for a specific task such as preparing the closing documents. Although they like to start with a blank check and bill based on the hours spent on the task you should call the shots. If you hire a lawyer for a limited number of hours or a specific task you can negotiate the price. You need to get this agreement in writing.