Buying a home is stressful. Not only do you have to negotiate a price with the seller, but you also need to negotiate a loan with your bank. You need to find out if the title of the property is clean and you have to review every document that comes your way. Even if you don’t understand all the legal terms.
It’s a nerve-wracking experience, but a residential real estate lawyer can help you with every step of the way. Your attorney will make sure you feel relaxed and know that everything will turn out okay. There are so many benefits to hiring a real estate attorney and we have compiled the top 5 on this list.
- Protect Yourself
As a first-time buyer, you may not know all your rights and they might take advantage of that.
Maybe the seller wants to inspect it with a company they choose. You don’t know this company and you rather do it with someone you trusted. The seller is being adamant that this is not necessary, and he convinces you. Now you risk ending up with a dishonest report that of course benefits the seller and not you.
As a buyer, you have certain legal rights and an attorney will make sure that you know them.
Did you know that most contracts come with a right to inspect your future home? If you did, great. If you didn’t, can you imagine not having your home inspected by a company you trusted?
There is also a legal timeframe that you need to keep in mind. A lawyer will keep you on schedule. You will be able to receive a report, review it, and discuss it with your attorney, all without skipping a beat.
In case you found something you didn’t like the attorney can make sure that those concerns are being heard. Which brings me to my next point.
- Help You Negotiate.
Let’s say there is something wrong with the house that was not disclosed. The pipes are rusty or the foundation is damaged. Attorneys will draw up a contract where the seller has to fix those problems or factor it in for a lower price.
A lawyer can perform thorough title searches that show whether the title is clean. Sometimes the home can’t even be legally sold until the owner of the property pays the outstanding liens or court judgments.
Again, if the title of the property comes with obstacles, an attorney will make sure that the sellers pay for them or they will help you negotiate a lower price.
- Planning Out Your Finances and Securing Loans
Real estate attorneys can help secure the loan you need. It’s a reality that homes are sometimes listed for more than they are worth.
For matters of simplicity, let’s say they are selling your dream house at $100,000, but the bank appraises the property at only $90,000. That means they will only approve you for a loan of that size. Where are you going to come up with an extra $10,000 on a strict timeline?
A lawyer can help you avoid all of that by telling you the different factors that affect your loan. And if things don’t go as planned, they can negotiate with the bank on your behalf.
That’s a very powerful tool to have in your arsenal.
Property Lawyers are not only there for negotiation. They can also help you calculate your future expenses.
Did you know that if you buy a home and put less than a 20% down payment, you need to pay a Private Mortgage Insurance or PMI to the bank?
If you did great, you are well on your way, but if you didn’t, did you know that the PMI protects the bank, not you? It’s meant to be there as collateral in case you can’t afford your house anymore.
Common sense would tell you to put as close as 20% as you can, but that’s not the best strategy. A better strategy, if you are strapped for cash, is to put the minimum percentage down (3.5%), and investing the rest somewhere else. With your investment, that money can grow and pay for insurance and make a profit.
The lawyer works for you; they want to see you succeed. They will advise on your PMI, a payment plan based on your budget, and much more.
- Corporations Can Be Complex
Buying a home with a single seller can be straightforward, but what happens when one of the parties involved is a corporation or trust? Contracts become much more complicated, that’s what happens.
Not only do they have to check that the titles and loans are in line with the state’s laws, but they also have to make sure it doesn’t violate any of the trusts, or corporations’ agreements.
If you have no idea what this means for you, you are not alone. This might be complicated to you, but not for an attorney. It’s their responsibility to know how these things affect you and take care of it on your behalf.
- Peace of mind
All the reasons above combine to give you one single thing. Peace of mind.
That’s the real value of a property lawyer. Buying a house is already so stressful and so time-consuming by yourself. You can put all your effort and you can figure everything out, but how long will that take you, and how tiring will it be?
A lawyer that represents you can help make the process as smooth as possible.
In Summary
Whether you want to do it all yourself or with help, it’s your choice.
The lawyer does come with a price tag at the end, but with all the money they save in financial advice, payment plans, bank loans, and negotiations, they are well beyond worth it. Plus they can help you save on hidden fees.
You will also have the peace of mind that everything is completely above board and that your rights as a buyer are being respected.
