Making Good Use of a Real Estate Lawyer

There’s a lot to consider when going through the home mortgage loan process. One way to make it easier, however, is through the use of a real estate lawyer. With an attorney by your side, there’s a reduced chance that you’ll be taken advantage of by shady sellers or brokers. Here’s a detailed look at the perks these professionas provide:

What they do: A lawyer can help you negotiate the real estate contract, and renegotiate it if a home inspection finds flaws or an appraisal deems the house less valuable than the sales price. A lawyer also represents your interests at the closing and does the lion’s share of paperwork and coordination associated with it.

Why you might want one: Unlike most of the people involved in the purchase of a home, a real estate lawyer is dedicated to looking out for the interests of you, the home loan borrower, at each stage. You don’t need one technically, but the short-term savings of not hiring one may pale in comparison to the long-term costs of not negotiating the best deal or walking away from a bad one.

Where to find one: Ask for referrals from your local bar association, your real estate agent or your mortgage broker. Also, ask friends, colleagues and family whom they’ve had a good experience working with.

Cost: Varies by state and by amount of work required. Fee structures also vary (some lawyers charge by the hour, others by flat fee, some by both depending on the task), but a ballpark range for what a buyer may pay in total is $350 to $1,000, said Marjorie Bardwell, a real estate attorney at Chicago Title Insurance Company.

In high-cost areas such as the New Jersey housing market, you may pay as much as $1,500, said real estate attorney Stuart Lieberman. Just be aware of all fees before making any final decisions.