Should a Buyer use an Attorney to BUY A HOME instead of a Buyer Broker

I point out the difference in commission I would make for certain price points and then ask them, "Do you think that on a commission of $x I would want to sqeeze out another $500 (or ?) and risk alienating a buyer who might use me to resell to the house or recommend me to a friend?

And do they understand that if they don't hire an agent then they are NOT REPRESENTED, unless the selling agent is also their dual agent?

Most attorneys know everything! They sure know everything when hired by their constituents in various houses of legislatures, all levels from county to federal.

So many folks don't want to have conversations anymore. Sometimes it's the one extra question that gets you the answer you're looking for. Glad you are one of those good guys in the real estate world!

Un-informed buyers don't have a clue and don't realize what they do not know.  I have never had an attorney client who knew a thing about property values or what to put in the contract.

Buyers need a buyers broker to buy the house and an attorney to review the contract and do the title work.

Eve in Orlando

Good advice for real estate buyers.  I sure would hate to rely on a lawyer for current market information.

Purchasing a home becomes more complex every year.  Your post is a good example of the importance of representation. Unfortunately, Buyers are unaware of all the missteps and pitfalls of a real estate transaction.

In Delaware, almost all buyers use an attorney for settlement. And other comments are correct--an attorney does not have the particular knowledge that we, as Realtors® have. We have "boots on the ground" and know houses inside and out. So get a buyer's agent and an attorney is good advice.

How did your buyers know if the atorney they wanted to hire was any good?

Just like Realtors, some attorneys are better than others. One of the important considerations is that firing a Realtor is easy -- just walk away. But try to fire an attorney and you will most likely be presented with a bill.

Scott,

Very good point. I see you are in NH. I am across the river in VT. We recommend a buyer's agent but as long as the buyer is fully informed of agency and informed that the listing agent is representing the seller; we do the deal with just the listing agent. This usually happens if a client for a buyer broker falls in love with the brokers listing and does not want to use another agent OR if they call an the sign to see the listing. Now for the attorney part... Both the buyers and sellers have an attorney.

I'm not sold on how your selection process of RE agents works for buyers or the fact that to be successful you must be a full time RE agent. Success is based upon performance not how many hours you work or am I missing something?

Attorneys do NOT want or need to do REALTOR jobs, and vice versa! A member of either group saying that the other is "not necessary" is out of line. I spent 20 years as a real estate attorney - including 10 in Michigan (where they do not use lawyers for real estate transaction).  During those years I make my money fixing legal mistakes made by real estate agents and title companies - and 10 in Chicago (where they do use lawyers for real estate transactions) during the boom years doing condo conversions and closings. I've spent the last 7 as a Real Estate Broker and my job is COMPLETELY DIFFERENT than it was when I was an attorney. As a Realtor I'm not going to stick my neck out and give opinions on legal issues any more than as an Attorney I would suggest that I was qualified to do what a Realtor does. Real estate transactions need a team including buyer, seller, inspector, appraiser, surveyor (for non-condo transactions), buyer's and seller's attorneys and a good closer at the title company. Every team member plays a different role and every one is important to the successful closing of the deal.

Ooops - pardon me we also need an excellent lender team to close the deal!

Dear Scott,

Buyers agents are a lot cheaper than lawyers and do not earn their income until success is achieved. What is the risk? Other than ending up with a lousy agent, but many of those have been weeded out by the recent poor market.

Why do people assume that an attorney knows all about real estate? Even a real estate attorney who is a crackerjack with contracts, title reports, and settling property line disputes is not out there looking at homes, knowing values, etc. And it's not in their job description to assist with negotiations, inspections, etc.

The tough part for consumers is finding the good agent... I wish I could tell them all to read Active Rain and learn something about the agents before they choose. But alas, in our neighborhood that plan won't work - NONE of them are here!

Hi Scott, the few times we use attorneys for closing and the mess they usually create is convincing enought for us.  No!

Provide accurate, thorough information (as you did) and let people make their own decisions.

Good morning Amigo,

Living in Texas most of my life I had no idea until ActiveRain that some states require that buying a home requires that an attorney transacts it.  In that case those people are Buyer's Agents but hold a different license, although I suppose in some cases also hold a Real Estate License or it would negate the point. In Texas, however, we typically don't have attornies involved other than drafting docs for lenders and escrow officers.  In commercial we do, all the time, but that's another animal.  Good topic of dicussion.  Have a fantastic day!

Lawyers and real estate agents certainly have different functions Scott, and we would be fools to try to give legal advice.

giving any mortgage advice by an agent is outside the scope of the license and expressly forbidden in most states!!!