Real estate agent or attorney

With recent news about the National Association of Realtors (NAR) settling lawsuits over commission disputes, this decision has become more complex. Platforms like Zillow make it easy to browse homes, but do those platforms replace the need for expert representation? 

Let’s break down what the NAR settlement means for you and how to decide whether a real estate agent – or perhaps an attorney – is your best option. 

What the NAR settlement means for home buyers 

The NAR settlement addresses claims that traditional compensation structures for buyer’’s agents were anti-competitive. Historically, sellers paid a commission to their listing agent, who then shared a portion with the buyer’‘s agent. This amount was disclosed up front in property listings. The lawsuit argued that this practice resulted in price-fixing. 

Moving forward, sellers can no longer include commission offers in listings. Instead, buyer’s agents must be paid directly by buyers through a written agreement established before showing any properties. 

This change shifts the financial burden of compensation to buyers, making it essential to reassess the value a real estate agent brings to your transaction. 

When hiring a real estate agent makes sense 

Real estate agents can provide immense value, particularly in certain situations: 

• Relocating to a new area: If you’re moving to an unfamiliar city and need insights on neighborhoods, schools, or local amenities, an agent can be a vital resource. An agent can guide you from your first viewing to closing, ensuring you find a home that meets your needs. 

• Navigating a competitive market: In areas with high demand, agents can help you make competitive offers and negotiate effectively. 

When hiring a real estate attorney might be better 

In some cases, a real estate attorney may be the more practical and cost-effective choice: 

• You’ve already found your home: If you know exactly which property you want, an attorney can handle the legal aspects – drafting contracts, reviewing terms, and ensuring compliance – typically at a lower cost than a buyer’s agent. 

• You need contract expertise: Attorneys excel in navigating complex transactions, ensuring your interests are protected during the purchase process. 

The bottom line

Whether to hire a real estate agent or attorney depends on your situation, experience, and goals as a buyer. If you’re new to the market or need help finding the right home, an agent might be worth the investment. But if you’re confident in your choice of property and only need contract assistance, using a lawyer instead could save you money. 

At Zimmer & Rens LLC, we specialize in helping buyers in Wisconsin protect their real estate investments. If you’re weighing your options, you can schedule a 30-minute call with a real estate attorney of our firm, and we’ll analyze your situation to provide a clear plan on how to protect your transaction and avoid liability.