One of the easiest ways to protect your interests as you buy a home is to hire an experienced, well-qualified lawyer. Your first instinct may be to search for the lowest price. But before you do that...
Consider how much time and money you've put into your purchase—and how much you could lose if there are issues (unfortunately, there are almost always issues).
First, fixed fees are common in the Chicago area
Most local real estate lawyers charge fixed fees (aka flat fees) for representation. This type of billing allows for a predictable closing cost. We see area lawyers charge a range of fees from $500-$1,500 for house closings.
Turns out, fixed fee quotes are not always what they appear to be. As you search for the right attorney, follow these suggestions to help avoid any surprises.
- Be specific about your property type
Many law firms, including ours, charge fees based on a property's characteristics. For example, firms may charge more for multi-unit investment properties, newly constructed properties, and short sales than for a more straightforward single-family home. Fees may also adjust based on your purchase price. We consider adjustments when purchase prices dip below $150,000 and when prices exceed $1,000,000. - Understand what services will be included (and excluded) in your specific deal
Our firm's fixed fee covers comprehensive legal services throughout the transactions, from pre-contract counseling and even beyond your closing, to taking care of final details.
Fixed fees for other firms may include a specific schedule of services and then charge additional fees when those services are exceeded. Some firms limit the number of times a client is given access to their attorney for consultations. For example, a firm may limit the buyer to two phone calls about the property inspection or closing, or no more than two hours for the closing itself. Some lawyers charge extra fees when closings are delayed, or when they must travel away from their "local turf." Many lawyers charge more for post-closing escrows. Our fixed fees include all of this. - Be clear about the beginning of the engagement. You'll find that our firm's fixed fee allows engagement even before you sign a contract. This early support can help buyers understand terms, plan tactics, analyze disclosures — all within the fee. If you are not working with a real estate broker (also called FSBO/For Sale By Owner), we can even help you prepare your offer.
However, some firms will not start working with a buyer until the offer is accepted and the contract is signed by both parties. Some will offer preliminary counsel or contract preparation, for additional fees. It's important to understand this up front. - Be just as clear about the end of the engagement. Our fee also covers post-closing services to finalize the transaction, including matters related to administration of escrows and re-proration agreements. We also ensure that your deed is recorded properly, that the seller's mortgage lien is released, and that a final title insurance policy is issued.
Some firms end the engagement as soon as the closing is complete, charging for any services after closing day—even with loose ends dangling. - Ask who will be doing the day-to-day work. In our firm, only lawyers & law school graduates handle contract and inspection negotiations, examine land title records, and supervise document preparation, closings, and settlement figures. To give our lawyers time to devote to client service, we have a team of skilled, experienced administrators and paralegals to manage administrative functions.
Law firms at the lower end of the fee range often save money by outsourcing work to freelance paralegals, title companies, or by hiring unskilled staff. You also might find lawyers who work alone and "do it all," which can be incredibly time consuming. Using either model, it may be much harder to reach the actual lawyers for meaningful legal advice because they simply don't have time. - Ask how your attorney will attend the closing. The pandemic changed a lot of things. Including the way closings take place (virtually). We make it a point to attend closings in person whenever possible. This allows us to review paperwork and settlement figures, answer questions, and address any issues in real time, face-to-face.
Many lawyers still only engage in closings by telephone or video chat. Some are even using these tools to close more than one transaction at the same time. Of course, we are adept with these technologies and if complications arise, we can and will use them. - Know what happens if the transaction does not close. If that happens, our firm does charge a fee commensurate to the work we put into the transaction. This is typically much less than our fixed fee and is determined on a case-by-case basis.
In truth, our firm does not offer the lowest fees out there. They reflect the broad scope of the services included, the high level of client care we provide, and our many years of focused experience. Are we worth it? Literally thousands of pleased real estate clients indicate "yes."
Schedule a call with us today to learn more.