Buying or Selling Real Estate Without A Broker
It goes without saying that selling real property without utilizing the services of a broker can save you money. Broker’s commissions for a residential sale can run in the 5% to 7% range. On a $500,000 sale that translates to $25,000 to $35,000. My fees on the same transaction would normally run between $900 and $1500. For that I can draft a contract from scratch or review an offer presented by a proposed buyer. Also, I can order the title insurance and set up the closing.
Services I Provide For Sellers
My services include helping with the Seller’s Property Disclosure which I consider to be a Seller’s most important defense against lawsuits after closing. I also help the Seller respond to any potential Inspection and Title Objection Notices. Further, during the life of the transaction I answer questions and generally back up the Seller. Finally, I review the closing documents. As you can see, I can do most everything a real estate agent can do while in addition bringing the expertise of a dedicated real estate attorney. The one thing I can’t do is market the property for you. So, if you need that service, you will need to employ a real estate agent. Otherwise, you can save significant money by retaining me.*
Services I Provide For Buyers
If you are considering buying real estate without utilizing the services of real estate agent, the question as to whether it will save the buyer money is less certain. Generally, a Buyer’s agent will want to be paid 2% to 3% of the purchase price to represent the Buyer. Legal representation of a Buyer in a transaction without a broker could cost between $900 and $1500. For that I can draft a contract from scratch or review an offer presented by a proposed Seller. Also, I can review the title insurance and help with any Title Objection. I also help the Buyer with any potential Inspection Objection Notices. Further, during the life of the transaction I answer questions and generally back up the Buyer. Finally, I review the closing documents.
My goal in life is to leave a real estate transaction with more money than the broker. Hire me for way less than you pay a broker.
Until recently, the Buyer’s agent’s commission has been paid by the Seller. Now, however, as a result of a couple of cases that have been handed down recently, Sellers are not obliged to pay Buyers’ agents. If in a given transaction the Seller negotiates a lower commission and is not required to pay the Buyer’s agent’s commission, which then would be the obligation of the Buyer, not using an agent would clearly save the Buyer money. Another situation which could save the Buyer money is one in which the Seller has negotiated one commission rate in case a Buyer’s agent is involved (say 7%) and a lower rate (say 4%) if there is no Buyer agent. This would allow the Seller to net more from the sale possibly incentivizing the Seller to accept a lower priced offer if a Buyer is not represented by a Buyer’s agent. Suffice it to say, not using a buyer broker may or may not save the Buyer money.*
Contact James E. Pansing, P.C.
If you are considering buying or selling real estate without a broker, call me today at 720-496-4740 to schedule a consultation to discuss how I can help. You can also reach me using my online contact form.
*Please be aware that even if you do retain a broker, I strongly recommend that you retain a real estate attorney who can provide the same services as described above adding a strong layer of expertise in your favor.