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Should I Hire a Real Estate Agent or Lawyer to Buy a House?


Variations on the typical commission arrangement also exist. For example, some buyers prefer to hire an agent and pay the commission themselves, figuring it will make the agent more loyal to the buyer's interests, and provide grounds for a drop in the sales price. Less commonly, you may find an agent willing to perform limited tasks for an hourly fee rather than a full commission (in which case you'd also want to ask the seller to bring down the sales price accordingly). Discount and rebate brokers are also available, usually providing you limited services, or interactions via the Internet, at a commission as small as 1%.

 
warning Agents paid on commission have a built-in conflict of interest

Even an agent who represents only you, and not the seller, has a financial interest in seeing the deal go through. While experienced, reputable agents won't let this interfere with their advice to you, it may cause less scrupulous agents to insist that you'll never get the house unless you bid high, to recommend home inspectors who make light of potential problems, or to otherwise compromise your interests.

How Attorneys Are Paid

Attorneys normally charge by the hour, at rates ranging from $150 to $350. You may also find attorneys who charge flat fees for specific services, such as preparing real estate closing documents. Although attorneys prefer to handle your entire case with a "blank check" from you regarding hours to be spent and tasks to be accomplished, you're hiring the attorney, and you can call the shots. If you prefer to hire an attorney for only a limited number of hours, or for specific tasks, such as answering a legal question or reviewing a document, you can negotiate this (and you should record your agreement in writing).

For more information on working with agents and attorneys to bring about a smooth, affordable house purchase, see Nolo's Essential Guide to Buying Your First Home, by Ilona Bray, Marcia Stewart and Alayna Schroeder.

Copyright 2007 Nolo


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