Selling my house. Could use some advice

[BUM]

I need to find a lawyer and I was wondering, since this is a residential property, should I still get an RE attorney or will a general practice attorney do just as good a job to protect and advise me.

Hi MJ,

If the RE transaction is not complicated you shouldnt need to pay for a high priced atty. to do the deal. In a similar situation, my broker recommended a new, young lawyer who would take the job cheap reasonably. It was a cut and dry deal and I saved a bundle.

 

[MJ]

Hi MJ,
If the RE transaction is not complicated you shouldnt need to pay for a high priced atty. to do the deal. In a similar situation, my broker recommended a new, young lawyer who would take the job cheap reasonably. It was a cut and dry deal and I saved a bundle.

Spoke to one of my neighbors who gave me the name of the lawyer who handle his house purchase many years ago. My neighbor was very impressed with his RE knowledge. I called the lawyer today. After an informative conversation, I asked what his services would cost me he said $4k. Is that reasonable in a large city like NYC?

 

[GTM]

Spoke to one of my neighbors who gave me the name of the lawyer who handle his house purchase many years ago. My neighbor was very impressed with his RE knowledge. I called the lawyer today. After an informative conversation, I asked what his services would cost me he said $4k. Is that reasonable in a large city like NYC?

Absolutley not
Some lawyers outside of Manhattan will do a closing for $1000 maybe less. In the city more but not 4k.

 

[Martha]

$4000! I am appalled. I just reviewed a purchase agreement for a friend and will do the deed for the closing. Did it for nothing--will take less than an hour of my time.

Usually a title company does the closing, especially if financing is involved.

 

[Mr._johngalt]

$4000! I am appalled.  I just reviewed a purchase agreement for a friend and will do the deed for the closing.  Did it for nothing--will take less than an hour of my time. 

Usually a title company does the closing, especially if financing is involved.

I have usually just figured between myself, the title company ,and
the lender (if I had one), that was enough talent at the table.
If memory serves me, I didn't ever use an attorney on either end of any
RE deal (unless it was real complex) and that includes my first house
which we bought in 1970.

JG

 

[Howard]

My experiance in having sold several homes, using RE Sales people, is that if you do it yourself, the buyer automatically knocks off 6% because he figures you are not paying the RE Fees.

It is totally ridiculous what RE Sales people get for what they do, especially in a HOT Market, although you may be able to negotiate down to 4 %.

Check your neighbourhood prices on the Net, but I would use a salesperson, it will save a lot of head aches.

I was a Medical Products Sales Rep for over 30 years, and in spite of my wifes insistance, I always use RE Sales people.

You may get a Bidding War.

 

[tryan]

After an informative conversation, I asked what his services would cost me he said $4k.

4K is robbery! The last 1/2 dozen sales I did were closed using the BUYERs attorney. My cost was $100 to handle the deed. The buyer has more of vested interested to ensure the sale is clean. You just need to ensure the check does not bounce.

Also have closed in many MA cities ... never paid more than $900. $600 is more the norm.

 

[Martha]

As seller, you want to have the sale be as close to an "as is" deal as possible. The lawyer can help with that--but you have to see a lawyer before you sign the purchase agreement.

And it shouldn't cost close to $4000.

 

[BUM]

There you have it MJ. $4K is way over the top. Small town $500-$1000... NYC? Go get a small town lawyer. Have the closing in the small town,

 

[MJ]

When he gave me the $4k quote, he quickly added that it was not negotiable (was he reading my mind?). In our conversation, he told me he was 70 and had extensive RE experience.
Perhaps he is charging higher legal fees because he is semi-retired and he wants only a few plum jobs. He may also still be building his nestegg to retire early at 80.

Thanks.

I guess I'll ask others in the neighborhood.

MJ

 

[Spanky]

$4K - he is nuts. He really does not want your business.

 

[MJ]

$4K - he is nuts. He really does not want your business.

I found the fee I paid 14 years ago when I bought this house, it was $750. He wants over 5x what I paid. I would give it to him if I was get 5x+ for my house.
I figuredd if he got $1000 14 years ago and increased his fee every year by 10% he would still get less than $3800. I wish my salary could have averaged 6% for the same time period.

MJ

 

[cute fuzzy bunny]

I personally wouldnt bother buying a house from the owner directly, as there appears to be little benefit and a lot of potential downside for both parties. The exception would be a very unique or special property, or a bargain.

The reasoning is that I dont see many FSBO sellers discounting their property to account for the 6% savings. So tell me why I'd want to deal with an inexperienced seller who will probably make me do most of the work and who has an emotional component involved in the sale, along with a probability for unbuffered irrationality? I've had my share of irrational buyers and sellers, and frankly if the folks hadnt had a realtor to settle them down, the deal would have gone south.

That having been said, the 1.5% el-cheapo listing agents are fine. Face it, 20+ years ago a realtor really had to market your property. In todays world, an MLS listing, a lockbox and someone to take the faxed offers is about all you need unless you're in a very tough buyers market. If you want more, i've regularly gotten the big name realtors like century 21 to take a 2% sellers agent fee, and that included a virtual tour, photos on the listing, and no apparent difference in service from a 3% listing.

On the buyers agent side, its a different matter. If you pay less than 3%, buyers agents will take their people elsewhere. At 2.5% you might still get bites, but at 2% and less, your home will go unshown except by rookie agents or agents whose customers saw the house themselves. While I appreciate that people want to make the most money, I think its a real disservice for realtors to avoid showing a home their customer might want to buy because they'd get paid a little less.

In fact, last agent I had didnt show me two homes that I found myself because they were below 3%. Those ended up being the final two choices I picked from and one is the house i'm living in now.

That agent didnt make any money at all as my buyers agent...

 

[Lancelot]

Go for it MJ!

I've sold a couple of houses on my own. Both times the buyers were represented by a realtor and they, the buyers, paid the realtors fee.

I had one house appraised by a realtor, listed the property accordingly and all the prospective buyers balked at my asking price.

I raised the price $10k and got a full price offer within one week...

Go figure...

I have also negotiated for lower realtor's fees. Some are indignant, others bargain in good faith. If you don't ask; you don't get

Lance

 

[Mr._johngalt]

Go for it MJ!

I've sold a couple of houses on my own. Both times the buyers were represented by a realtor and they, the buyers, paid the realtors fee.

I had one house appraised by a realtor, listed the property accordingly and all the prospective buyers balked at my asking price.

I raised the price $10k and got a full price offer within one week...

Go figure...

I have also negotiated for lower realtor's fees. Some are indignant, others bargain in good faith. If you don't ask; you don't get 

Lance

I negotiate about everything. I've had realtors tell me they can't
change the commission because "the company won't allow it".
There are lots of realtors though. As far as increasing your price
to snare a buyer, never did it myself, but sometimes it works.

JG

 

[MJ]

I hope to have great news very soon.

I'm not superstitious but to be on the safe side, I am keeping my mouth shut!

So for those of you who are psycho psychic, or mind readers,

STAY OUT OF MY MIND.

 

[jug]

There you have it MJ. $4K is way over the top. Small town  $500-$1000... NYC? Go get a small town lawyer. Have the closing in the small town,   

I live in NYC, for my house it is $1250, however my union just sent me a benefit that it would cost $900 for closings.

When you think about it, the contract is usually boiler plate, so the attorney simply adds a line or subtracts a line to fit the case, it's no big deal.

And no way Jose should you pay anywhere near 4k, or 2K,

In closing on a sale your main concern is that the funds are ok but if they are not, then you simply take the house back. The purchaser is obligated to fulfill his part of the contract, and that is to PAY you, otherwise the house reverts back to you. I know someone will give me flack on this one.


No need to worry much. The Buyer has to worry more about what's wrong with the house, and usually has to buy Title insurance to make sure there are no liens on the property. You just take the cash and leave the old headache to the other guy.

 

[pbrane]

Hi MJ:

I'm on my 10th property, and have sold about half on my own (FSBO) and maybe 3 or 4 with full-rate (6%) realtor, and one or two with companies that charge around 3% to get you in MLS, but maybe let you show it yourself etc.  I tried the last sale with a $150 FSBO service, but it finally took the MLS to bring in a buyer from out of state. It usually won't hurt to give it a try via FSBO for a month or two..

A big factor is how hot the market is; how "attractive" the house is (curb appeal etc -some houses almost sell themselves); and how busy a street etc.

regarding lawyers, I usually just look in the yellow pages for a real estate attorney and it shouldn't cost more than a few hundred dollars. In fact, I think I've done it (sell) without one, as the buyers' mortgage company often will set up the closing statement and do the closing.

As for checking the buyers' credit, you should be able to call their mortgage co. and talk to the person handling their case and ask them if they're qualified and to what level etc.

I don't know if I've added anything of value..(hope so).....

By the way, I wanted to ask you about your impressions of Thailand as a potential retirement haven. What do you think? Do you see yourself living there full-time? (maybe that's why you're selling??)  Part-time? Another vacation? On to another country next time?

Thanks and good luck!

-pb

 

[MJ]

I went to another neighbor and he recommended the attorney he used to buy his house. The attorney will be charging me $950.

 

[Sparky]

I looked at a condo listed on "I Sold My House.com". The owners were a bit disingenuous - they dropped a number of the taxes, and ignored my question about a special assessment (which was $8,400!).

Totally turned me off - what else weren't they telling me?

 

[tryan]

After listing the house with a realtor for 3 months (and rejecting 3 offers), my neighbor lowered the price and tried "I Sold My House.com". After 2 years of on-again-off-again ... it's still unsold.

Another reason to hire someone to do the job ... it'll get done.

 

[Mr._johngalt]

I went to another neighbor and he recommended the attorney he used to buy his house. The attorney will be charging me $950.

Based on all of the real estate I've bought and sold, I must have
saved about a bazillion dollars.

JG