Discount agent or real estate attorney?

17 years ago

This will be our first time selling a house. We have two choices...a discount agent who is $400 and 1/2%, or completely fsbo with a real estate attorney. We live in the Portland OR area, and things seem to be moving, but a little sluggish. We are pricing it low in hopes of a quick sale.

Any suggestions on which would be better in our situation? Secondly, if we choose and real estate attorney, any suggestions on how to pick one? There seem to be a million in the phone directory.

Thanks!

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Comments (9)

dreamgarden
17 years ago
These might be useful.

Finding the best attorney for you
www.bankrate.com/brm/news/advice/20050504a1.asp

Business Real Estate: Selecting a Good Lawyer
real-estate.lawyers.com/Business-Real-Estate-Selecting-a-Good-Lawyer.html
rrah
17 years ago
The question becomes what will each do for you? Will the discount agent simply put it into the MLS for the $400 and 1/2%? Will you be responsible for understanding all offers, etc? Unless you're willing to pay the buyer's agent the going rate in your area, chances are slim any agent will show it just because it shows up in the MLS. Without a willingness to pay a buyer's agent it seems as if you'll be throwing money away with the discount agent. Will the attorney handle the negotiations and contracts? Find out what you're getting for your money from each.
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I am a Realtor and can give you a little advise even though I dont know your state laws. First of all never ever sign anything unless you are 100% comfortable with it. What I would recommend is talk to a few LOCAL agents and "interview" them. See which ones listen to what you want, are responsive and have personalities that you are able to work with and enjoy. Something to the effect of making a call and seeing how long they take to send you some listing sheets and what homes they are for and meet them to see one or two of these. Then pick ONE (the one who found you the homes you liked best- meaning they listened to you and whose personality you enjoyed)of them dont keep working with a bunch of agents it's just not fair to us and you will not get the best service. Even if they have you sign a contract at least you can be comfortable with them now- I personally would never sign a buyers agency contract on the first meeting. Also remember contracts are changeable so if you want to write in something about FSBO's and if you are responsible for payment put in a number that you think is fair but remember its not fair to them if they drive you all over the place spend hours and hours on you and then you take the education they have given you and use it to cut them out of the deal. Good luck!
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I sold my house to an agent and here’s what happened. We went into escrow and she asked for a reduction in the price by 2.5% instead of being paid a commission from my realtor. It was the same out of my pocket so I did it. The realtor then didn’t have to pay a broker fee because she is representing herself in the deal and she didn’t pay taxes on the commission because she didn’t earn one. I could have said no, then she would’ve taken her commission, paid her broker and paid her taxes. In retrospect, I should not have dropped the price the entire 2.5%, only an estimation of what she would net in the deal. So realtor buyers do have an advantage in any deal!!! All these realtors don’t want to admit it on this thread. “Why should her job matter” bc a realtor can manipulate the system. And this is exactly why NAR and Keller Williams lost a class action lawsuit recently - requiring that sellers pay a buyers agent. It inflates home prices and allows realtors to get personal advantages. Things will be changing. https://www.cbsnews.com/amp/news/nar-lawsuit-verdict-real-estate-agent-commissions/
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quirkyquercus
17 years ago
In a lot of places the atty's do the title work also so as long as you use their office for the titloe work then they will likely review your contract for free in exchange for writing in the contract that they must use your title co.

With that said call and ask them if they'll review offers and read/write sales contracts for a fsbo for free. Ask for experienceb and all that. Interview at least 3 and have one as a backup.

Atty's and agents don't serve the same purpose. The agent is to market your home, not the atty. Ask any prospective agent what they can do to help you and how they are going to market the home. If all they're going to do is stick a sign in your yard well.... you can do that yourself.
I would hesitate to use the MLS myself if going fsbo.
Agents typically don't rush to show fsbo homes anyway. Maybe if it was a hot mkt.
quirkyquercus
17 years ago
Oh...
What to ask...
I'd start by saying "I'm a fsbo, doing the fsbo thang. Do you work with fsbos? Have you worked with many fsbos? I am in Fsboville, do you service my area and familiar with the laws here? What can you do to help me? How do I contact you when I urgently need you to review an offer and write up a contract? Can I reach you at home on a Saturday? How many years have you been practicing? Can the signing and closing be held at your office?"

And as usual I recommend a mail-in closing for the seller to help prevent any last minute surprises.
terezosa / terriks
17 years ago
Both. You need the discount agent for the MLS exposure, which IMO is the single most effective way to find buyers, and the RE attorney to handle the legal end of things.
emb7
17 years ago
hi Roxyl! Where in Portland is your house? We are trying to buy. We've seen the market slow down the last 6 mos. Some houses sit for awhile but the well priced, decent ones are still moving. Maybe we can work out a deal. :)
Seriously.

I do agree with an earlier poster that you should consider paying the buyer's broker a 2-2.5% fee so they will show their buyers your house. You still save the 3% on your end. Then you can do FSBO and not need an attorney if you are willing to trust the broker on the buyers end (not for negotiating but once complete they can do the title/paperwork). In Chicago we were required to have a lawyer but my understanding is that here in OR you don't necessarily need one.
roxyl
Original Author
17 years ago
Hi emb7! Yeah, come buy our home! We actually are across the river in Vancouver WA. Many people live here and commute across the river. We have no income tax, great schools (we live within a few blocks of elementary and middle, with brand new high school this fall) and much lower home prices. Depending on where in the Portland area you're working, you might look over this direction. Vancouver has got a lot going for it.
And thanks everyone for the responses! It's fantastic to find such a friendly, fluffy crowd with very solid advice. :)
emb7
17 years ago
I have co-workers that do the crazy commute from Vancouver to Lake Oswego (where I work). I'm not ready to go that far out and away from the "urban" feel but know others that are. If you're under $450K you should totally go for the FSBO, or even if higher, try for a bit. My colleaugue had a house in Camas priced at $550K and it was gorgeous but didn't sell, he ended up renting it out for a year. I think Vancouver itself is doing better than the surrounding area. Good luck!!
pebbles396
17 years ago
We sold a house a few years back using a discount agent and she was fantastic. It was a great way to go, esp since we knew so much about RE and worked in the industry.
I used Royal Realty but they only service IL. Our discount brokers legally have to negotiate the offers.

Here is a link that might be useful: royal realty in IL

Discount agent or real estate attorney?

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dreamgarden

rrah

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Discount agent or real estate attorney?

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