Realtor VS No Realtor (Wilmington, Elsmere: sales, real estate, lawyer)

[wvs820]

Hello Everyone,

Let me begin by thanking everyone for there advice and real life experiences with home buying in Delaware. My wife and I enjoy reading these threads for helpful research and with educating ourselves on where and how to proceed with a big decision like buying a home. Now for a little background information. I have a special place in my heart for Delaware. I was born in Wilmington and moved to Jersey when I was 6 years old. I would visit my grandparents in Wilmington for another 20 years or so. My Mom's sister and her family lived in Elsmere for many years. My wife and I will both be 60 this year. I have to tell you that after almost 4 years of research we have finally decided to retire in Delaware. We started in Florida and worked our way up the eastern seaboard. We both love the 4 seasons and would not handle the heat and humidity that the southeast brings. We decided to come back home where it all began for me. Now for my questions. We are really a little Leary of getting a buyers agent to help us look for a home. I apologize to all the realtors on this thread But, I really wonder if they have my best interests in mind. Here is how we would like to proceed. We would first retain a real estate attorney for contract review. Then we would hire an independent home inspector to carry out the inspections at each stage of the home building. Rather then use a middle person (realtor) negotiate final sales price. We are still about 2 years away from purchase. Incidentally this is going to be a cash purchase. More later. Please advise us if our plan will work. I welcome constructive criticism as well. We are beginning our search in 55+ neighborhoods in Kent county. Thank you so much for taking the time to read this

[nuts2uiam]

I can only speak to NY experience but I am fairly certain that NJ is the same. My contract in NY was something like 27 pages. My contract in De. was 4 pages. We too, were cash buyers, in Rehoboth. Now perhaps our circumstances were different, but the seller and we used the same attorney. Our agent lives in the community and knew the sellers as neighbors. He also previously lived in NY and knew NY real estate and when we asked for recommendations for a RE attorney, he said it was not necessary. We expressed concern over the lack of representation and knowing where we came from, he understood. He sat with us and read the contract and the only variable in it, was the settlement date, because they were waiting for some renovations on their new home. It really was very straight forward, and we had no problem if they needed a little more time, because NY closings took longer than De. and we knew we would not be moving for a while.

When we went to contract on our home, we hired a home inspector to review the property. The seller agreed to the few items we had issue with and accepted our offer.

Now, I am a little confused as to what you are intending to buy. On one hand it sounds like you plan a new build, but you really would be dealing with a builder for a new home and generally speaking ( going on our search) if you choose to build model ABC, there is a base price for ABC, then the price escalates for every screw, nut and bolt they use. Just kidding, but the price seems fairly structured. For example, you start with the base and then you wish elevation C that is X number of dollars more, and a bonus room x number of dollars more, or a fireplace, or patio, so I am not sure where an agent would even come into play. That said, maybe people do use one for a new build, I have just not heard of it being done. In my mind, you have little to nothing to lose with a buyers agent in an existing home because his/her commission is paid by the seller.

[jtees4]

I also currently live in NY (hopefully for not too much longer)....anyway, just my opinion.....I would never ever do any kind of real estate transaction without a lawyer. I have seen a lot of problems pop up well after sales. I even used a lawyer when I sold my half of an inherited house to my sister....it's worth every penny in not worrying about things. As far as strictly realtors, you really do not need one if you have a good lawyer, however, I would never take a real estate persons word for anything, sometimes they can be honest and still be "legally wrong". Good luck.

[rdlr]

Originally Posted by jtees4

I also currently live in NY (hopefully for not too much longer)....anyway, just my opinion.....I would never ever do any kind of real estate transaction without a lawyer. I have seen a lot of problems pop up well after sales. I even used a lawyer when I sold my half of an inherited house to my sister....it's worth every penny in not worrying about things. As far as strictly realtors, you really do not need one if you have a good lawyer, however, I would never take a real estate persons word for anything, sometimes they can be honest and still be "legally wrong". Good luck.

Everyone should do what's comfortable for them. Delaware Real estate contracts pass over my desk on a daily basis, at least 150-200 per year. These contracts are quite lengthy and detailed. These days, Realtors take a ton of continuing education on writing sales contracts. The classes are taught by real estate attorneys. The real estate boards are constantly updating/clarifying their contracts of sale, and local real estate attorneys are part of that process. I don't know how other states operate, but I know Delaware.

One item I sometimes see in contracts, is.... EXAMPLE ONLY: "5% closing costs paid by seller on behalf of buyer". They should say "5% of CONTRACT PRICE to be paid by seller on buyer's behalf"...(just a clarification). Another issue, if you hire an attorney to write a contract, don't just get "an attorney" as stated in the above quoted post. Hire a REAL ESTATE attorney. There's a difference. Real estate attorneys are up-to-date on special verbiage to be inserted in real estate contracts, while attorneys not specializing in real estate may not be. For instance, the Veterans Administration must have an "Escape Clause" in their contracts regarding V.A. financing. That doesn't apply to conventional financing contracts.

Proposed new construction is something different. I've seen builders' contracts that are not clear, and are somewhat confusing. I would have a real estate attorney review the builder's contract before signing.

I'm not a Realtor, and I'm not an Attorney. But, I've been working in a branch of the real estate industry, in Delaware, for 37 years.

[nuts2uiam]

I would say forget about what my case was and listen to RDLR. She is in the field. I even pulled my contract just to to be sure and it was 4 pages. Like I said in NY, you need a RE attorney, and based upon some others here, that I asked when we closed, they too went with just a 4 or 5 page document and no lawyer. I was unsettled at that. but once the agent sat with us and read over every line with us, there was nothing that was subject to any question other than the settlement date and therefore we did an on or about date which is standard in NY.

[wvs820]

Great information so far.

[Maki_Chicago]

Real estate attorneys are a small expense. I need an atty in Wilmington area, any recommendations please DM or post here if allowed.

[skeddy]

Why would anyone make one of the largest financial transactions in their lifetime without a real estate attorney to look over the contract and be there to answer any questions you have at closing?

People confound me.

[nuts2uiam]

Originally Posted by skeddy

Why would anyone make one of the largest financial transactions in their lifetime without a real estate attorney to look over the contract and be there to answer any questions you have at closing?

People confound me.

I always pushed and still push for people to use a REAL ESTATE attorney in NY. However, as I have previously said, when we moved here and went to purchase our home we asked the realtor for an attorney and he said we did not need one. In the interest of full disclosure, we bought in our agents' community, he was the listing agent and he knew the neighbors we bought from. There were no exclusions and our only request was that there was a problem with the fireplace and that needed to be addressed. The owner was in the home when we saw it and he volunteered that he had a repair person coming in because since it was September and not in use, he was not aware that there was a problem. When we had our inspection a few days later, he left the paperwork for the part being replaced so we could see it was being addressed That was included in our contract and the homeowner sent our agent the paid receipts once it was fixed. Our contract was 4 pages and others that bought after us from NY also did it this way. We had no reason to use another attorney, although coming from NY we were stunned. My hubby is not an attorney but he worked with lawyers his entire career and he agreed that it was pointless based upon the "english" as opposed to legalese in our contract. It may not be for all, but it worked for us.

[arabus]

I believe a real estate attorney is required by law in Delaware.