Real Estate
Purchase and Sale Agreements
Save $1,000’s by using a lawyer instead of a realtor on your next real estate transaction!
Certain types of agreements must be in writing: real estate deals are one of them. When buying or selling a home, the average person has been trained to think, “I need a realtor.” The less common school of thought is to use a lawyer. Despite the typical notion that lawyers charge high fees, lawyers beat realtors in terms of cost and value when it comes to real estate deals. Using a realtor is not something you have to do; perhaps using a realtor is something you should not do, depending on your needs and your circumstances. A typical transaction will include a buyer’s real estate agent and a seller’s real estate agent (in Washington State these are technically called brokers). The seller’s agent will typically enter into an exclusive listing agreement with the owner of the home (the seller) which will last for a period of time and will include a commission for the agent of 6%. The seller’s agent will then agree to split that commission with the buyer’s agent so that they each get 3%.
Realtor Commissions
According to Zillow, the average home value in the greater Seattle area is $783,969. This means that the average realtor commission of 3% is equal to $23,519.07, PER SIDE – the seller’s agent AND the buyer’s agent each earn $23,519.07, taking $47,038.14 in total. It would take a lawyer over 94 hours billing at $250 per hour to earn that same $23,519.07. How many hours is your realtor spending on your transaction?
Lawyer Fees Instead
So, how much does a lawyer charge? Typically between $1,000 - $2,000 total. Lawyers are limited in their billing to what is considered to be a reasonable fee. Realtors do not have this same limitation. The greater the value of the property, the greater their commission as it is based on a percentage.
Save Your Money
The end result is the same: your property is sold or your new property is purchased. One way will cost you more and one way will cost you considerably less.
Consultation: If you’re buying or selling a home, please don’t hesitate to contact Haapalainen Law, by phone at (425) 563-3796 or request a consultation by clicking here.