Why Do I Need A Real Estate Attorney?

Almost all homebuyers feel confused about the process of buying a home. Sometimes the mere thought of investing significant amounts of money and committing a large percentage of your paycheck for the next twenty or thirty years creates a substantial amount of anxiety. Contacting one of our real estate attorneys is one of the first steps you should take to insure that your interests are protected and advanced. More importantly, you should contact a real estate attorney before you sign listing agreements or agreements of sale. Don’t wait until settlement has been scheduled because by that time, all the contracts have already been signed.

Breaking down the buying process into the following steps will also help you:

Step 1 – Get Educated. By reading this article, you are taking an initial step toward the purchase of your new home. However, reading articles or books is no substitute for obtaining the advice of a real estate attorney whose only goal is to protect and advance your interests. To learn more or to schedule a meeting with one of our experienced real estate attorneys, please e-mail us at info@dbyd.com or call our office at 215-362-2474 for an appointment. Do not sign any documents unless your attorney has reviewed them.

Step 2 – Determine Which Individuals Will Help You. Many people may offer to help you in the home-buying process, but keep in mind that these individuals, while well-intentioned, may not be qualified to give you expert advice. Additionally, their first priority may not be your best interests, but rather their own or someone else’s. Our DBYD attorneys will make sure that your best interests are protected to the fullest extent possible under the law; we will ensure the legality of the process; we will review and assist with the preparation of documents; and we will aid and advise you with regard to all contracts and agreements. With regard to costs, we will generally work on a flat fee so that your costs are fixed.

Our firm cannot emphasize too strongly that you should hire an attorney at the outset and not sign any documents until your attorney reviews them. The time to amend the terms of a contract and provide further protection for you is before you sign documents. Once contracts are formed, you are locked into those terms.

Step 3 – Obtain Mortgage Preapproval. Make sure your finances are organized. Obtain a copy of your credit report and make sure any negative ratings are resolved and corrected. Get pre-approved for a mortgage. Decide what monthly costs for taxes, homeowners insurance, and utilities you can afford. Determine how much you may need for closing costs and how much of a house you can afford. This will help you to become realistic in your search and limit the number of houses you inspect.

Step 4 – Determine Your Wants and Needs. The process of buying a home will go a lot more smoothly if you are able to write down your wants and needs and rank them in order of importance. Some examples of what should be on your list are resale potential, type of neighborhood, size of the lot, type of house, number of bedrooms, number of bathrooms, amenities (office space, closets, storage, etc.), size of garage, school district, homeowners or association dues, taxes, and utilities.

Step 5 – Start Searching For a Home. In addition to reviewing the multiple listing sheets provided by your realtor, you should review all available “Homes for Sale” magazines and classified ads in your local newspapers. It is also a good idea to spend time searching the internet for new homes.

Step 6 – Prepare an Offer. Once you have decided to buy a particular house, you will need to prepare an offer. To do so, you must decide upon the purchase price and down money; time of closing; amenities (e.g., appliances, fixtures, etc.); and the contingencies and inspections which you will require (e.g., Full House Inspection Contingency, Radon, Mold/Mildew, Water and Sewer, Insect, Mortgage, and Sale of Other House). When drafted correctly by your DBYD attorney, these contingencies will help you to define exactly what you are offering to buy and, in the event that the contingencies do not meet with your satisfaction, you will have the option of renegotiating the offer or refusing the seller’s counteroffer.

Step 7 – Acceptance of the Offer. Once you submit your written offer to the seller, the seller may either accept the offer, reject the offer, or present a counteroffer. If the seller accepts the offer, then a binding contract is established. If the seller refuses the offer, you have the option of walking away or presenting a second offer. If the seller presents a counteroffer and you accept it, a binding contract is established.

Step 8 – Post Contract Issues. After the contract is established, all of the inspections must be completed and you must obtain a mortgage, make sure the contingencies are complied with, and order title insurance which will be required by your mortgage company at settlement. Your DBYD attorney will help you through the maze and also order title insurance for you.

Step 9 – Closing: Settlement Day. Congratulations. You are now ready to schedule closing, which is the day that you sit down with your title agent, attorney, seller, realtor and Mortgage Company to complete the transaction.

If you are interested in buying a new home or selling your existing home, please call our office at 215-362-2474; or contact us at info@dbyd.com to schedule an appointment. One of our experienced real estate attorneys will be happy to meet with you and assist you in developing your home-buying and/or home-selling strategy.

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