Expert: Jessica Bryan - 8/16/2010

Question
Hello. I am writing to ask your opinion about selling my townhouse without the use of a realtor. My situation is a little different because I found a potential buyer on my own. If this buyer does not work out, I may then get a realtor. However, in this case, I do know that the potential buyer has been pre-approved for a mortgage and will be viewing my home with their realtor. My question is, if I want to sell my home to them, can I just get a real estate lawyer to represent me and take care of all the paperwork? My rationale for doing this is because I want to save money, particularly the commision I normally would have had to pay my own realtor. Would I have to pay some sort of commision to the BUYER'S realor though? Can you tell me how much I would be saving overall by using a real estate lawyer instead of a realtor? Would you recommend doing so in this case? (I am not advertising the home in this case either, thus saving costs there as well.) Does a real estate lawyer do all of the paperwork that a realtor would do? Is there anything that he would NOT do that I would need to be done to sell the home in this specific case? Any information and suggestions you can provide would be most appreciated. Thank you.

Answer
Hi Bonnie;
Yours is a good problem to have!  Since you already have the Buyer, I would say that the only reason to have a Seller's agent would be to possibly help with appointments and inspections in the event that you want someone present and you are not available. An agent would also make sure that the loan approval takes place in a timely manner and that all of the conditions in the contract are being met in a timely manner. Other than that, the attorney will be able to draw up the necessary paperwork that the seller is required to have for the closing.  The Buyer's agent will have the forms and contracts that you will need to sign.  The Buyer's agent will also need to make arrangements with you for inspections and other issues that may come up.  Depending upon the area, the standard practice may be that the Buyer's agent receives compensation from the Buyers rather than from the sellers.  However, this is something that you will discover quickly when the offer is presented since the Buyer's agent will need to reach an agreement with you if the agent seeks compensation from you.  It would have to be a separate agreement and you are free to negotiate the fee you will pay to the agent.  There is no set amount for this.

As for what the attorney will not do...Certainly an attorney will not baby sit the house during an inspection or arrange for repairs.  The attorney will check over the contract but will not remind the Buyers what their obligations are and/or stay on top of the dates and timeline to get everything done.  You will have to do this and if there is a breach of contract then you can seek advice from your attorney.

Best wishes,
Jessica Bryan