What Good Does It Do?
The Complexity of the Deal Makes hiring help make sense.
Since real estate deals can be so complex, having an attorney who is on your side can help. While they won't get involved with the actual pricing of the home, they can help you negotiate terms and smooth the process.
No state will require you to hire an attorney. In fact, some states discourage the use of a real estate attorney. They think they clog up the process. But the truth is, sometimes an attorney you hire is the only person who is completely on your side during the settlement. Whether you really need one depends on how familiar you are with the process and how difficult the deal is.
How They Help
Here is a glimpse at just some of the ways real estate attorneys can help you:
Cost vs. Value Price is often just right.
For the money, they can be a great deal. The question is whether to buy by the hour or by a percentage of the loan. There are divided camps on this. Some say a flat rate is best because you know what you are going to pay going in. Others say that hourly is best because it may be more efficient and less expensive. The choice is up to you. Talk to a number of attorneys to see what services they offer and try to determine the best payment structure for your budget. Some will compromise and offer an hourly rate not to exceed a certain amount. This could get you into trouble though, if the cap is reached before settlement.
If you look at the total amount you are spending on the loan, though. Spending some on an attorney who will help protect your interests seems wise.
The Question What do you owe?
You are going to be asked to pay a lot of money during the settlement process. There are fees for inspections and points and down payments and the mortgage. You need to review your budget and be prepared to make some tough financial decisions. Do you hire an attorney and a home inspector or can you just afford one? Which one is more important to you? The best answer to that question is to look down the road and determine which is going to help the most in the long run.
Are you better off knowing the house you are getting is sound or are you better off getting a good deal that could save you money in the long run? The ideal situation is to be able to hire everyone you need to help ensure a successful deal. Unfortunately, a lot of buyers just don't have the cash for that. Look around and compare prices. Then make up your mind if you need professional help or if you are willing to trust the seller's broker and attorney to help you too.
Important Tip They aren't everything.
The important thing to remember with a real estate attorney is that they can't do everything. While they can prepare the contract (in your favor) and perform title searches and settlement work, they can't get involved in the price of the house. They can help you negotiate, but they won't suggest a purchase price. They can review language and refine agreements though, which could save you money in the long run. In short, they keep you as their first priority and work to protect your legal rights.
Rules of Hiring
There are some rules to follow if you plan on hiring your own attorney:
First: Always contact your attorney before you sign the contract. Plan ahead. This is where they can really help you.
Second: Make sure they are available at odd hours, because many settlements take place on weekends or at night.
Third: Make sure that if you are paying by the hour that there is a clear schedule of action and that you are always prepared for meetings so they can go quickly.
Fourth: Look for attorneys who work well with brokers. Not all do.
Fifth: Don't choose your attorney on the seller or seller broker's recommendation alone. You want someone who is impartial to the deal and aligned with you. If you are facing a complicated deal, such as one with multiple lenders, get an attorney. The more deviations from the norm, the more you need legal counsel.
Now Let's Look at How to Find One
Helpful hints...
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