The Value of a Great Real Estate Attorney

People go into real estate transactions thinking they don't need an attorney until they need one. The reality is you may not know real estate processes the way an experienced real estate attorney does. You don't know the legal arguments to make, or how to advocate for yourself if the seller is overcharging you. Hence it’s crucial to get an attorney from the beginning of each real estate transaction.

Here are four ways that Alexis Hart McDowell brings value to your real estate transaction:

#1 Providing education

When you educate your clients, you take away the fear of purchasing, selling, or investing. I believe in educating my clients because knowledge is power. Most importantly, it kills fear.

My most recent client wanted to do a 1031 exchange, but she had no idea where to start. I’m knowledgeable on the subject because I teach a 1031 exchange class. When she asked her previous attorney about the timeframe of finding a new property, they had no answer.

When she asked me the same question, I told her that she had 45 days to find a replacement property. I also told her that the 45-day countdown would begin after selling her existing property. I also told her about the need for a Qualified Intermediary, a professional who holds the proceeds from the sale until you buy your replacement property.

Until our conversation, she had no idea what a Qualified intermediary was or what the fundamentals of a 1031 exchange were. I added value to her by letting her know the first step and the timeframe of the process. That helped build her confidence and knowledge of this type of transaction.

#2 Empowering clients

When you have a trusted, experienced person on your team, you feel empowered to move forward. You feel confident and bold about what you're stepping into, knowing that you are making the right decisions for yourself and your family.

When I educated my 1031 exchange client, she felt empowered to leave her previous attorney. And because I told her how to set up a 1031 exchange, she grew more confident. I went as far as sending her several contacts of Qualified Intermediaries so she could choose one she preferred.

My client knew she had a trusted real estate attorney by her side, and so she knew her investment would be safe. As such, she felt empowered to proceed with her investment. She was more confident in her decision to sell her current property and buy a replacement one because she now knew every step of the process. The education I gave her empowered her to make the right decisions about her real estate investment.

#3 Financial savings

I help bring my clients money or help them save it. In either instance, it helps their bottom line. A fantastic example of this is a recent commercial property deal on which I worked. This was a nearly $8 million defeasance deal, meaning the buyer paid earnest money. He paid $65,000 in this instance.

Getting into a defeasance deal requires numerous attorneys and entities. The seller pays all these fees. To ensure that my client didn’t lose money, we made the earnest money non-refundable. In so doing, I ensured that my client had $65,000 when the deal failed. He had compensation to pay for all fees incurred. 

I helped another client avoid overpaying for a property they were buying. When under contract for *$300,000, the appraisal value was *$285,000. The seller wanted my client to pay *$300,000 despite the lower appraisal. 

After discussions, the sellers offered to reduce the contract by *$7500. I sent them an email detailing all the reasons it is not acceptable for my client to pay above the appraisal price. They caved, and my client bought the house of her dreams at the appraised price.

#4 Provision of rational counsel

Purchasing a home can be very emotional for clients. Property is the largest purchase you will make in your entire life. So, you want to make sure you have rational counsel. A real estate attorney serves that purpose. 

I helped my client understand that finding her dream house does not mean overpaying for it. I have been in real estate for two decades, so I understood the sellers’ mindset. All it took to get my client’s dream home was one email from an experienced individual who understood the process. That’s the value a real estate attorney will add to your home buying or selling process! I offered great counsel AND saved my client thousands of dollars in the process.

My purpose as a real estate owner and investor is to empower and educate communities of color, to help them build wealth through real estate and entrepreneurship. Contact me so I can guide you through the process of selling or purchasing a property. You can book a consultation at enterpriseesquire.com/calendar. I look forward to being of service to you.

*Not actual values