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The Difference Between Realtors & Lawyers

By
Real Estate Agent with RE/MAX Allegiance, Managing Broker/Branch Vice President

So, why choose real estate over law?

As someone who has a license to practice both real estate and law and who spent the first several years of my career as an attorney, I get this question all the time.   Even from my parents! 

This is how I respond:

As an ATTORNEY: 

  • People usually come to see you after the fact, after things get screwed up big time!  NOTE: There is a lot that attorneys can do to counsel people before things go wrong; BUT for some strange reason people prefer to spend BIG $$ to get themselves out of a mess instead of spending much less to prevent it.  Remember, An Ounce of Prevention is Worth a Pound of Cure.
  • There's a lot at stake whether it's money or personal freedom (in the case of criminal law)
  • Most people are not accustomed to dealing with lawyers
  • They think we're going to be expensive
  • People have heard all the attorney jokes.
    • Do you know how many lawyer jokes there are?
    • ONLY ONE!  ALL THE REST ARE TRUE STORIES
  • Law is by nature CONFRONTATIONAL -- one party wins, the other loses -- and we are trained to think that way in law school.
  • People are genuinely nervous, anxious and scared when meeting with an attorney

So at an initial meeting, we've got to overcome all of these things.

NOW, As a REALTOR: 

  • For most clients it is an exciting time in their lives
    • They are buying their first home -- YEAH!
    • They are moving up to a larger home
    • They are getting a job promotion and can afford a nicer neighborhood
    • Their family is getting larger (the stork is on its way)
    • They are selling their house and making a good profit
    • (sure for some clients w/problems they are losing money or don't want to move, but this is the minority)
  • People are making a big investment and rely upon our guidance
  • Many people have dealt with Realtors in the past
  • Although they may think we are going to be expensive if they are selling their home, and there is no actual cost for buyer representation, the clients DO NOT HAVE TO WRITE A CHECK OR RECEIVE A BILL.  It comes out of the proceeds.  For most people that is a helluva lot easier than writing a check to an attorney.
  • There are many fewer Realtor jokes
  • Thanks to NAR's promotions and Code of Ethics, we are still viewed as above attorneys and used car salesmen on the food chain.
  • Real estate involves much more COOPERATION instead of CONFRONTATION and COMPETITION

Right off the bat, the relationship is much more cordial and friendly.

Both professions have their pros and cons and their rewards and stresses.  And both allow you to make a living using your brain to help and counsel people around some major pitfalls in life.

This is what I have found:

Working for a law firm might mean endless hours of work, often on a small part of a case, working for the partner's clients, playing office politics and trying to make partner in 8-12 years or more.  If you leave the firm, you generally don't take your clients with you.  You get a nice steady paycheck, but there is a limit to your yearly increases.

Working in real estate might still mean lots of hours, but you are working for yourself and have much more control of your time (i.e., I usually eat all 3 meals a day with my wife -- this is important to me!).  My clients are mine (well technically the broker's), but they are loyal to me, and were I ever to switch brokerages, the clients would follow.  There is little if any office politics.  And you create your own destiny financially -- there is no limit to how good a year you can have in real estate.

The Bottom Line:   I have had 2 career mentors in my life.  One in law and one in real estate.  They are both about the same age (early 60s) finishing up their careers.  They are both incredibly successful.  They both work hard.  But, in the four years that I've known both of them, I've never seen the attorney stop working around the clock.  He's taken one vacation for a week and a half since I've known him.  The Realtor takes off a cumulative total of 6-7 weeks a year and travels and pursues outside interests.  The Realtor seems happy and healthy all the time.  The attorney has had several major health issues as well as frequent up and down weight gains and losses.

I am very thankful for my legal education and background and it helps immensely in my real estate career, but 

WHERE DO I WANT TO BE AT THAT AGE?  TAKE A GUESS! 

Kathy Clulow
Uxbridge, ON
Trusted For Experience - Respected For Results
Having had dealings with many Lawyers (for a variety of things) and Realtors I would have to agree with Margaret.
Jul 17, 2007 11:58 AM
Mesa, Arizona Real Estate Mesa Arizona Realtor
Homes Arizona Real Estate LLC - Mesa, AZ
AzLadyInRed

Brian, a law degree and a Realtor? As a former paralegal, I also vote for being a Realtor which is why I changed my profession after 25+ years. I LOVE it!!! I had contemplated becoming a lawyer, but then changed my mind. I enjoyed the role as an "independent" paralegal, but love even more being an independent Realtor. Being a Realtor is definitely less adversarial. Good post.

 Pepper http://www.GlitterMaker.com/ - Glitter Graphics





Jul 17, 2007 02:39 PM
Brian Block
RE/MAX Allegiance, Managing Broker/Branch Vice President - McLean, VA
Northern Virginia & D.C. Real Estate

Suzi:  I'd love to help with your legal questions, but I'm only licensed in Virginia.

Margaret & Kathy:  While your statements may be generally true, there are lawyers who thrive on preventing problems by counseling clients on setting up legal protections BEFORE the fact to avoid problems.  One of the things that my clients appreciate about my legal background is that I am thorough about pointing out potential issues that may come up in a transaction.

Teri:   I still keep my law license active just in case there is some legal work for me to handle (whether it be a friend, a past client, etc.).  However I don't derive much income any more from legal work.  Even though we've got tons of Realtors in my area, I've heard that 1 out of 4 people in the D.C. area has a law degree!  When we met, my wife was planning to apply to law school -- instead she became a ballroom dance instructor!

Jul 18, 2007 03:40 AM
Debbie White
Southeast Alaska Real Estate - Juneau, AK
I Sell Alaska!
Brian - I can definitely see where your past experience and training would be considered very helpful to your real estate career.  I agree real estate is a lot more fun.  I'm not an attorney but I do have a friend who is.  Your clients are lucky to have someone with your background in their corner.  I do have to wonder if the other agents are intimidated though.
Aug 17, 2007 03:21 PM
Adam Waldman
Westcott Group Real Estate Company - Hauppauge, NY
Realtor - Long Island
Brian - Here's the other difference (at least in my market).  You chose the profession that wants to make sure that people close on their homes and follow their commitments, whereas your former profession often times undoes our hard work because of some sense of what is "supposed" to be.  The problem is that they sometimes operate inside a vacuum, and not within the confines of the real world around them when it comes to real estate.  Glad to have you on our team!
Aug 17, 2007 06:18 PM
Dennis Carr
Bay of Dreams - San Diego, CA

Thanks Brian!

 This post is helpfull for anyone who is down, and has thoughts that maybe going to law school and becoming an attorney may provide for "greener grass".  We do have much flexibility in our lives as real estate agents, and should appreciate this.

 Dennis Carr

Aug 17, 2007 07:30 PM
Ted Baker
Carmody and Associates LLC - Winter Haven, FL
MidFloridaMediation.com

Brian - I see a lot of my experience in your post.  I am also a former attorney now working in other fields to include real estate.  I found that while I love The Law - I was not too fond of attorneys.  I am with you - I would much rather date the dance instructor !

Seriously, however, your legal training and background will benefit you and your real estate clients because of your experience and attention to transactional details.  You will be an asset to your colleagues and those you represent as a Realtor.  I wish you well and will keep you on my list for referrals in the DC area.  

(and by the way, my personal favorite... the problem with lawyer jokes is that the lawyers don't think they are funny and the public doesn't think they are jokes)

 

 

Aug 17, 2007 11:26 PM
Brian Block
RE/MAX Allegiance, Managing Broker/Branch Vice President - McLean, VA
Northern Virginia & D.C. Real Estate

Debbie:  Thanks for your comment.  I haven't found that other agents become intimidated knowing that they are dealing with an Attorney/Realtor but I do think they show a certain sign of respect.

Adam: Your comment definitely rings true.  I think a lot of Realtors view attorneys as a nuisance during the transaction trying to constantly interfere and maybe preventing our payday.  Of course if something does go wrong we are quick to refer clients to "go see an attorney."  There may also be a slight sense of professional jealousy since all the real estate classes always hammer home the fact that "you are not an attorney."  I always go up to the instructor afterwards and say "Yes I am."

Dennis: Thanks for coming by.  I'd have to say that it's not really greener grass.  But that being said, all professions have their pros and cons.  But nobody should attend law school on a whim or for fun -- it is definitely 3 years of very hard work.

Ted: Ah, another recovering attorney.  Thanks for your comments.  I do know that my legal training helps quite a bit in this business and sometimes other agents in my office will call me for certain advice.

Aug 17, 2007 11:44 PM
Adam Waldman
Westcott Group Real Estate Company - Hauppauge, NY
Realtor - Long Island

BRIAN:  I probably should have clarified that this is not the case with all attorneys.  I have a great one that I use that does everything possible to make sure that the deal is smooth and that I get paid.  I do believe that they have their purpose in protecting a clients' interests from a legal perspective, but they have actually now started to impede the process by not only allowing, but encouraging clients to make unreasonable demands for the current market, which you and I discussed on something that I posted yesterday.  Just as I feel that REALTORS that don't understand the mortgage business are only doing half of a job, I believe that attorneys that want to specialize in real estate law, and don't follow the trends in the real estate industry are also only doing half of a job.  I'll give you an example.

I had a home listed in a lower-income area, at a fairly high price for the area, a while ago.  The purchasers were going to be using close to 100% financing, and only had $5K to put down all together and in total.  It all went down on contract.  The attorney started to advise my sellers that if they can't get more then these aren't good buyers.  Today, with the mortgage issues we're facing, this may be good advice, but back then, all of the buyers that were coming through the door were in the same situation as the buyer that made the offer.  Anyone that was able to put down 20% on around a $400,000 home, was moving to a more expensive home.  Did I like the fact that it was only $5K down?  No.  But to me, the purpose of earnest money is to ensure that the buyer doesn't get cold feet and walk away.  These buyers would no sooner walk away from $5K than someone else would have walked away from $40K.  It was all they had.  The attorney's office was in a high-priced areas where 20% down is the minimum and it's usually significantly more.  He used his position as their attorney to instill fear in them, but didn't follow the local market (which wasn't that far away) to use common sense and realize that no buyers shopping that area had $80K, or even $20K in most cases.

There are other stories, but this one really drives the point home.  I do respect any lawyer that does a good and fair job for his/her clients, just as I respect any REALTOR or mortgage broker that does the same.  Unfortunately, our industry as a whole is rife with mediocre or worse "professionals."

Aug 18, 2007 12:21 AM
Brian Block
RE/MAX Allegiance, Managing Broker/Branch Vice President - McLean, VA
Northern Virginia & D.C. Real Estate
Adam:  I agree with you that any attorney who specializes in real estate law should definitely follow the trends and understand the business as well.  The real estate attorney that I affiliated with and worked with for several years here has been practicing real estate law for 35 years.  His father was a real estate developer, and the attorney also has a broker's license though he has never sold any real estate personally.  He's also very active at our Northern Virginia Association of REALTORS (NVAR), twice serving as chairman of the Mortgage Finance Committee and teaching classes to other Realtors.  He also got elected to the NVAR Hall of Fame for his service, and is the go-to-guy for real estate law.  It was a privilege to learn from him.
Aug 18, 2007 01:31 AM
Sue Argue
Staged First Impressions - Hampton, NH
NH Home Stager
Brian, You bring to the table a lot more knowledge and experience having had another career. Many people in real estate are working on their 2nd or 3rd career. Even if it's a total switch (I'm a cardiac RN), I think the added life experience is helpful.
Aug 18, 2007 02:32 AM
Anonymous
Sorin
Thank you Brian.  I love my Realtor work and lifestyle.  I follow all my advice to my clients with "but I am not a attorney".
Dec 25, 2007 06:17 PM
#20
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Keller Williams Realty - Ann Arbor, MI
Ann Arbor Area Real Estate
Very interesting Brian.  I like this post and think it is excellent.  I'm on my second career as many of us are.
Apr 28, 2008 04:41 AM
Mandi Perkins
Pioneer Title Agency - Pinetop Lakeside, AZ

Interesting Brian.....I always wanted to be a lawyer when I was younger. I changed my mind because the schooling took too long and I always thought it would be somthing to do when my kids are grown.

Sep 10, 2008 04:54 PM
Christine Donovan
Donovan Blatt Realty - Costa Mesa, CA
Broker/Attorney 714-319-9751 DRE01267479 - Costa M

Brian,

As someone who has been asked the same question many times, I think your answer is brilliant.  Also, I think your disclaimer is important.

Sep 10, 2008 07:04 PM
Jeff&Grace Safrin
F.C.Tucker 1st Team Real Estate - Valparaiso, IN
SpousesSellingHousesTM

Well Counselor - My Jeff always gets that question since he is one in his family that did not go to law school. LOL

I'd say your JD is an exceptional benefit to all of your clients Brian!

Sincerely,

Grace

Sep 11, 2008 02:29 AM
Bill Schwent
Casa Tierra Realty - Santa Fe, NM
Santa Fe Broker

Brian,

Since your posting is over a year old now and the real estate market is not doing as well in Alexandria as it was then, is your broker still taking six to seven weeks off and still appears to be healthy and happy?

Sep 18, 2008 01:31 PM
Brian Block
RE/MAX Allegiance, Managing Broker/Branch Vice President - McLean, VA
Northern Virginia & D.C. Real Estate

BILL:  Actually, the person I was talking about is not my broker, but another associate broker with my company.  He's actually semi-retired from real estate and is on the speaking circuit as a real estate trainer and doing quite well.

Sep 18, 2008 01:50 PM
Anonymous
Not Yet Licensed

Good evening Brian,

Thank you for a very good perspective on two career choices.  I like the humor you added.  :)  One of my sons is evaluating his options right now.  I would like to see him get into real estate, but he doesn't seem to have an interest at this point.

Best regards,

Bruce

Sep 18, 2008 02:02 PM
#27
Lisa Delzompo 951-704-4559
Sand to Sea Properties, Inc. - Palos Verdes Peninsula, CA
Experienced, Trusted, & On Your Mission: Home

Thank you, Brian, for laying out the answer that I give when asked: why would you switch from being an attorney to being in real estate?  I use the short answer: because attorneys are involved when people are upset and fighting; brokers are helping people do things when they are happy and optimistic.  I'd like my dad to read your post, because like your family he can't understand someone not clinging to the supposed prestige of being an attorney.  My short explanation hasn't convinced him.  ;)

Jan 22, 2010 02:14 PM