An Attorney and Real Estate Agent Walk into a Bar… But, seriously, which one do you need?
The relationship between attorneys and real estate agents has always been a delicate one. Real estate agents’ work comes dangerously close to practicing law on an almost daily basis. Just as you can represent yourself in court, you can buy and sell real estate without a real estate agent. Self-representation in either of these circumstances carries a lot of risk. Can you use an attorney to buy or sell a home? Sure. This article will explore the differences between services you can expect from a real estate agent and those you can expect from an attorney.
Time is money
Now, more than ever, business is conducted around the clock. The majority of real estate negotiations and discussions occur after normal business hours. While work schedules have become diverse and flexible, many buyers and sellers are still most available in evenings and on weekends. In the current seller’s market, decisions need to be made quickly, and a seller will not wait until the next day’s business hours to get a response or conclude negotiations.
The vast majority of real estate agents work extremely long hours. They make themselves available when their clients need them and when the deals are being done. Clients are given direct access to their agents and communicate in a variety of ways, including personal cell phones, texting, Facebook messenger, emails, Instagram, and more. Most attorneys work traditional business hours, and you are given access to their business phone and work email address. Response time with attorneys could be hours or even days.
It's not the attorney’s fault. Their business runs at a different pace than a real estate agent’s. Lawsuits can and often do take years to resolve. Even simple communication requests can take weeks and weeks. Their deadlines are most often in increments of months, not days. In a real estate transaction, the entire purchase or sale could occur in thirty days, with many deadlines occurring along the way. Attorneys just aren’t familiar with the pace of real estate deals and accompanying deadlines.
Knowledge is power
When it comes to depth and breadth of knowledge, attorneys win hands down, but when it comes to real estate deals, it’s not always a landslide. Attorneys definitely have a larger knowledge base on the complicated sides of the industry – easements, bankruptcy, foreclosure, estates, trusts, etc. Real estate agents have a more intimate knowledge of the real estate transaction – financing options, appraisals, inspections, homeowners insurance, and general real estate etiquette.
Attorneys draft agreements of sale and may even advise sellers on their duty of disclosure under Pennsylvania law, but as REALTORS® we are supported by a state association with a team of lawyers. They spend their careers making sure REALTORS® have all the tools they need, including forms that have been crafted and revised over many years to provide the most comprehensive document to address concerns most often found in real estate transactions. A comprehensive seller’s property disclosure is provided that not only meets the state’s minimum standards, but also provides added liability protection to sellers and a more in-depth disclosure for buyers.
Service is key
Attorneys can be hired to draft documentation and perform negotiations, but there is so much more to a real estate transaction and services you can expect from your real estate agent. I have seen many lists and presentations of all the things a REALTOR® does. It is often presented in a comedic way because it does actually get pretty ridiculous sometimes. Here is a small sampling of these kinds of lists: showing homes, helping make sure your grandma’s china cabinet will fit in the dining room, advising on financing options and making sure you are getting a good deal with your lender, preparing an offer that will result in success in this market, scheduling inspectors and appraisers, negotiating repairs, coordinating the logistics of selling, buying and moving, preparing accurate cost estimates, accompanying you to the property on the day of closing to make sure it is in good condition, helping with appraisal requirements, making sure the deal doesn’t fall apart for a hundred different reasons, and reassuring you everything is going to be ok after the kids go to bed.
Attorneys may charge a flat fee for very specific items like contract preparation and then possibly hourly for any negotiations, conversations, emails, etc. If the deal gets complicated, the bill will go up. As agents, our fees are negotiated at the beginning of the process, not the end. We get paid the same for an easy deal as we do for a deal that requires us to climb on a roof and paint a house for an appraiser to be happy. Real estate agents also only get paid if the transaction closes. If our efforts are not successful, the client isn’t paying us for work that didn’t achieve their goals.
Best of both worlds
Wouldn’t it be great if you could have the best of both worlds? Not to make this sound like an advertisement, but you can. At Dream Home Realty, we work extremely closely with a real estate attorney. When we encounter more sophisticated problems or questions, the attorney is just a text or phone call away. What does that mean? Clients get the full array of services mentioned above and the security of knowing an attorney is on hand to deal with anything beyond the scope of a real estate agent.
Most real estate deals close with no need for an attorney’s involvement. Buyers or sellers who want to buy or sell a house with the aid of an attorney are paying for more than they need and not receiving the essential services that they do need. Self-representation, whether in court or a home sale, always seems like a good idea, but can lead to liability, loss of time and money, and regret.
You don’t go to your family doctor for a root canal – make sure you are choosing the right professional for the job.