Why doesn’t everybody use you?
I hear that a lot. I perform all the same tasks as a Realtor, but I do them as your lawyer. In addition, I provide legal advice and can review your closing documents at no extra charge (Realtors can’t do this). I set up this model to prove that Realtors charge too much. You can have a lawyer do everything a Realtor does, plus provide legal advice for less money than a Realtor. Why would anyone hire a Realtor? I charge less than Realtors and still make far more than my hourly rate.
My clients love my service (click here for Google Reviews).
How Much You Can Save Working with AttorneyRE
On a home that costs:
- $350,000: $4,380 is typically refunded to you.
- $750,000: $9,780 is typically refunded to you.
- $3,450,000: $46,230 is typically refunded to you.
I have had 2 transactions in which my clients saved over $100,000 in commissions each.
Commission Rebates vs Commission Refunds
Commission Rebates are Paid by Brokers
When a Realtor pays a commission rebate to their buyer, it is construed to be a discount on the costs to acquire the home. It is NOT a discount on the buyer broker’s fee. If it were, that would presume that the buyer broker’s compensation is determined by the listing broker, not you. Buyer brokers are supposed to negotiate their fee with you, not the listing broker. Yet, most buyer brokers try to claim that they are entitled to that money.
Commission Refunds are Paid by Attorneys
I get paid legal fees, not commissions. So when I receive a commission I construe that money to be unearned fees and I deposit my trust account. Once it clears my trust account, I refund it to my clients less my legal fees. I am refunding the commission. I am not paying a commission rebate.
Tax Implications? I Don’t Think So.
Ask, and I will send you an IRS letter that seems to indicate that commission rebates are not taxable income. I am not a tax attorney and am not qualified to advise you on this.
Rebates are Illegal. That’s a Lie
If an agent tells you that commission rebates or refunds are illegal, they are lying to you and should be reported to the Minnesota Department of Commerce. Minnesota Statute 82.70 COMPENSATION is clear on the matter and it says that commissions can be shared, “between a licensed real estate broker or salesperson and the parties to the transaction;” You can find the statute here.
Realtors Charge Too Much
“You get what you pay for.” is what Realtors say when they I find out that I charge less than them. But they don’t know me and they don’t know how I operate. First, I do not have to split my fees with agents because I am the brokerage firm and I have no agents. Second, with me you get a lot more than Realtors provide. I am your lawyer throughout the entire transaction and I provide more service than any Realtor could. With most Realtors, you pay a LOT more and get a lot less. Imagine paying 6% and then getting no advice, counsel, or negotiating tips because your agent is a dual agent (click here to learn about dual agency)? It is illegal for attorneys to engage in dual agency (and it should be illegal for Realtors too).
I’ve always had a problem with the amount of money my legal clients have had to pay buyer brokers. Few of my clients knew how much their agents were getting paid because it is not disclosed in any of their closing documents. So to prove my point, I’ve started this service to prove that you can have an attorney provide better service for a lot less. I refund the entire buyer broker commission to my clients (less my legal service fees). Instead of a Realtor (technically, I am a Realtor – needed for MLS access), you get a far more qualified service provider who is loyal only to you and who can do the job better and for far less. You truly do get what you pay for.
And if you want to compare my qualifications to those of a Realtor, consider that Realtors must have a Kindergarten education and take a 30 hour class on how to pass the real estate licensing exam. Not only do I have a Kindergarten education, I went to law school, passed the Bar Exam and I got certified as a Real Property Law Specialist (a difficult certification to obtain). Oh, and I made up the part about Realtors being required to have a Kindergarten education. There is no education requirement for them.
Multiple Listing Service Access
In order to collect the 2.7% commission (that is how much is typically paid by the listing broker) for my clients, I must hold a broker’s license and be a member of the Realtor Association and the MLS. I use the same tools as Realtors. I also provide my clients with a wealth of information before they view any properties. And I won’t steer you into over-priced and conflicted ancillary services, charge you outrageous junk fees, or exploit my fiduciary relationship with you. You will receive far better and more competent service than a Realtor and you get a commission refund.
Read my blog post about how Realtors ambush buyers (click here).