Realtor vs. Real Estate Attorney: What Twin Cities Duplex Buyers Need to Know Before Skipping the Agent
The other day a buyer called with questions about one of my duplex listings. Before we hung up, he asked if I had any objection to them using an attorney instead of a Realtor to negotiate the deal.
I didn’t have any objections. I did wonder, however, what the buyer hoped to gain by hiring an attorney instead of an agent. The only thing that sprang to mind was he wanted to save the commission.
I immediately thought of a list of ways it would cost him more than he hopes to save.
- A Real Estate Attorney Won’t Show You Listings. While some lawyers have their real estate license, most make their living charging people for legal representation. Therefore, the buyer has to make arrangements either with the listing agent or another Realtor to get into the property at all.
- A Real Estate Attorney Won’t Alert You to New Listings and Good Deals. A Realtor’s job is to help you find a property that suits your needs and helps you achieve your goals. They are not out looking at property, studying the market or digging through new and old MLS listings on your behalf. If you’re working on your own, how will you know if you’ve found a good deal or are actually overpaying?
- Attorneys Don’t Look At Real Estate Every Day. Do they have experience with cracked heat exchangers, sewer lines or hail damage? If so, can they provide you with a list of qualified vendors to render professional opinions or make repairs? A Realtor can.
- Attorneys Charge You To Redline State-Approved Contracts. Every year, thousands of Minnesotans use boilerplate real estate contracts that have been approved by the Department of Commerce. The vast majority do so without legal incident. In more than two decades as a Realtor, nearly every time an attorney was involved, they redlined this contract. On several occasions, it was a matter of them preferring a specific word over one the state deemed acceptable. The result? The sellers became worried and decided they, too, needed to hire an attorney, and a redlining process began. This increased the costs for both parties, and lengthened the transaction timeline.
- You Have To Pay An Attorney Whether You Close Or Not. An attorney charges you for the work they do. A Realtor only gets paid if you purchase a property. An attorney charges you every time you talk to them on the phone, as well as for every offer they write.
Of course, if what makes you most legally comfortable is for an attorney to review something, you should absolutely do it. However, if the sole purpose is to save some money, it may, unintentionally, cost you more than you save.