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A seasoned attorney could save you money in the course of buying a home. Read on to learn more.
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In the context of buying a home, you’ll often hear people discuss the importance of hiring the right real estate agent. You’ll also generally hear that it’s a good idea to shop around with different mortgage lenders.
But as essential as these moves are, it’s just as important to find a good real estate lawyer when you’re in the process of buying a home. Here’s why.
A good real estate lawyer could save you money
You don’t need a real estate lawyer to make an offer on a home. You can do that through a real estate agent, and in some cases, just do it yourself directly.
Rather, you need a real estate lawyer to review any home purchase contract you’re signing. That’s because you’ll want that contract set up in a way that protects you financially.
Let’s say you’re buying a home that ends up having issues that don’t become evident until it undergoes a home inspection. If your purchase contract contains a home inspection contingency clause, you’ll generally have the right to back out of that purchase without penalty if a problem is revealed. Without that clause, you’ll risk losing the deposit you put down on your home if you no longer want to buy it due to issues uncovered during an inspection.
It’s also extremely important to get a good real estate lawyer if you’re buying new construction. Generally, in these situations, your builder will present a contract that very much works in their favor. A real estate lawyer can negotiate aspects of that contract that include what compensation you’re entitled to if your build is delayed and what allowances you’re eligible for (meaning, what your builder is required to provide as part of your new home build and what money you’ll get back for providing certain things, like appliances, yourself).
It’s also common for new construction contracts to contain an escalation clause. These clauses allow builders to pass higher costs they incur during the construction process onto buyers. A good lawyer might be able to negotiate that number down so you don’t wind up getting stuck having to pay a lot more for your home.
How much will a good real estate lawyer cost?
Real estate service Clever says you can expect to pay between $150 and $350 an hour for a real estate lawyer. However, many attorneys charge a flat fee for home purchase contracts and closings, so it pays to shop around in your area and see what the going rate is.
If you’re using a real estate agent to buy your home, they might also be able to recommend a good real estate lawyer to deal with the legal side of things. And you may even be able to snag a discounted rate in that situation due to that referral.
All told, you should know that when it comes to buying a home, your real estate agent can’t take the place of an actual real estate lawyer. And while you might have to shell out some money for an attorney, what you gain financially could more than make up for that cost.
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