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Why You Need Representation in Real Estate Transactions

First of all, it is to your advantage to have representation. Why?  Because a licensed salesperson has more knowledge than you of market conditions.  Most of us who have licenses (two lawyers in this firm are licensed brokers), monitor listings and sales in the professional MLS.  This site provides more information than available in public services such as Zillow.

If you are not represented and want to go to an open house, when you are asked if you are represented, say yes and give the name of either Jim Tupitza or Robert Hulnick.  Consider us to be place holders.  If you like the house and later want a specific agent from a brokerage company to represent you, we will step aside and let that agent take over.  If you want to hire us to make an offer, we are available.

If you do agree to buy a home remember that the price of title insurance is the same everywhere.  It is set by then PA Dept of Insurance.  The difference here is that when we have the title order, you will have a real estate lawyer at closing for no  additional cost. Call us at 610-696-2600 or 610-719-8100

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Impact of Lawsuits on Realtor Commissions

The buzz after the first round of law suits against Realtors® has died down.  The second and third rounds are coming.  What does this mean to you?

SELLERS: Be aware that buyers will be asking you to pay for their agent.  Be prepared to negotiate. When listing, you should negotiate the commission amount to the listing agent based on that agent only and not on having to pay money to a buyers’ agent.

SELLERS’ AGENT:   Delete paragraphs 6 and 7 from the PAR® form XLS.  Advise the Sellers that buyers will negotiate directly with them and that you will not be part of any discussions for you to pay a co-operating broker fee.

BUYERS:  You have a contract with an agent.  Make sure you understand that either you will be paying the buyers’ agent fee outside closing or that the seller will pay. If the sellers will be paying. On the PAR® form Agreement of Sale, in paragraph 3(A) delete everything  from “In addition to any…. to the comma.  Then fill in the buyers’ agent fee you want the Sellers to pay.

BUYERS’ AGENT:  If you do not have a written agreement with the buyers setting out your fee, you should not be spending time showing houses.  Tell the buyers you will be preparing their offers with a paragraph providing for a commission to you.  If you have a buyer willing to offer $X and they are competing with a buyer making the same $X offer with no agent, raise the amount of the offer to $X +Y% so the commission can be part of the mortgage funding.

REALTORS®:   Never discuss a commission with another agent.

If you have a question call us at 610-696-2600. We are here to help. Two of the lawyers in the firm are licensed real estate brokers.