In Minnesota, agents working for buyers are typically paid 2.7% of the purchase price by the sellers’ broker. I provide all the services that a Realtor does, as your lawyer, for 1.35%. My fee is a contingency fee – I only get paid if I am successful in collecting the buyer brokerage fee for you (typically 2.7%).
All the Same Realtor Services and Tools, as Your Attorney. I use a showing service to help you visit homes and I virtually attend showings of homes you like (a video call). Some of the things I do for you:
- Set you up on MLS auto-searches and emails.
- Run a market analysis on homes before you place an offer.
- Help you negotiate the entire transaction. Dual agent Realtors are prohibited from helping you negotiate.
- Recommend an inspector who is looking out for your interests, not the Realtors.
- Attend the inspection virtually and negotiate the inspection issues.
- Review your title work and closing documents (something Realtors can’t do).
- Typically attend the final walk through of the home.
- I discount my fees even more for new construction.
I Refund the Commission to you (similar to a commission rebate). When I collect the 2.7% commission from the listing firm, I deposit that money in my attorney trust account on your behalf. I consider that money to be yours, not mine. After the commission check clears my trust account, I refund the commission to you less my legal fees.
Examples:
$350,000 home:
Refund of $4,380 (approximate). A Buyers’ broker will receive $10,050 from your transaction (assuming they charge you their typical $600 junk fee). Sellers will typically pay me $9,450. My fee will be $4,725 plus a $125 non-refundable drafting fee and non-refundable $44 showing fees for each property you are shown. If you see 5 properties, my total fee will be $5,070.
Me: You Get a Refund of $4,380. No junk fees.
Realtors: They collect $10,050 (includes a $600 junk fee they charge you at closing) and you get back nothing.
$750,000 home:
Refund of $9,780 (approximate). A Buyers’ broker will receive $20,850 from your transaction (assuming they charge you their typical $600 junk fee at closing). Sellers will typically pay me $20,250. My fee will be $10,125 plus a $125 non-refundable drafting fee and non-refundable $44 showing fees for each property you are shown. If you see 5 properties, my total fee will be a total of $10,470.
Me: You Get a Refund of $9780. No junk fees.
Realtors: They collect $20,850 (includes a $600 junk fee they charge you at closing) and you get back nothing.
$1,450,000 home:
Refund of $19,230.
With a Realtor, they get paid $39,750 (includes a $600 junk fee they charge you at closing) and you get back nothing.
$3,450,000 home:
Refund of $46,230.
With a Realtor, they get paid $93,750 (includes a $600 junk fee they charge you at closing) and you get back nothing.
What Do Realtors Do? I can tell you what they shouldn’t be doing… They shouldn’t be providing you advice or negotiating for you if the house is listed by their brokerage firm – it is illegal (this is one of many reasons you should never agree to dual agency). They shouldn’t be giving you lending advice – that’s what mortgage officers do. They shouldn’t be appraising houses – that’s what appraisers do. They shouldn’t be inspecting houses – that’s what home inspectors do. They shouldn’t be giving you legal advice – that’s what attorneys do. They shouldn’t be recommending title companies – few of them understand what a title company does and most Realtors have such cozy relationships with title companies that it interferes with the neutrality of the title and closing services. They shouldn’t be attending closing – any advice that you might need at closing likely falls under the category of legal advice and it is illegal for them to give you legal advice.
Most Buyers Search and Find Their Own Houses. if you find your own house, why do you need a Realtor? They are extremely limited in the advice that they can give you. With me, you get all the same Realtor searching tools and you have an attorney representing you – ONLY you. It is illegal for attorneys to subject you to dual agency (it should be illegal for Realtors too).
Wouldn’t you rather have an attorney drafting your purchase agreement? I only represent consumers and I only handle residential real estate. Plus, I’m a Real Property Law Specialist, certified by the Minnesota State Bar Association. I have been a member of the Bar Association’s forms committee for many years. I also hold a real estate broker’s license and am a Realtor and MLS member.
I can only work with a few buyers at a time, so please call me to see if I am available. I love helping consumers save money on real estate commissions and I love educating consumers on the real estate process. Give me a call 612-284-9000 or email me: [email protected].