Identifying important agent qualities when buying or selling a house

Buying or selling a house without the right team behind you is a lot like playing hide-and-seek … blindfolded. So, when you decide to work with an agent, here are some of the key qualities to look for:

• Knowledge: Your agent must be familiar with the neighbourhoods you like and the style and price range of house you are looking for. So, if you want to buy a condo in Toronto, you probably won’t want to rely on that agent friend of yours in Ottawa.
• Experience: Your agent should be someone who has worked with clients like you before, who knows how to help you buy the house you want for a fair price, and who can anticipate problems before they come up.
• Time: Your agent must be willing to spend time to give you the support and direction you need … when you need it. If you place a call to your agent and don’t hear back within 24 hours (but preferably much less!), you may not get the service you need.
• Contacts: Your agent should have a list of colleagues and advisers to call in when you need financial advice or assistance, legal work, appraisals, and so on.
• Ethics: The relationship you have with your agent is guided by a code of ethics, available online at www.crea.ca/realtor-members/realtor-code/. Reading the code will help you understand what to expect of your agent.
• Established broker/office manager: The managing broker of the office where the agent is based should be a respected and well-connected broker. The broker provides backup to the agent and, if a serious problem arises in the conduct of the sale, can be an indispensable ally for you, too.
• Multimedia skills: Even though your agent may not be the star of a dedicated YouTube channel or have 10,000 followers on Twitter or Instagram, you still want to make sure you’re on the same wavelength when it comes to tech smarts. Your agent should be comfortable with online and multimedia marketing tools and familiar with how to use them to find properties that suit you and market your home to potential buyers.

Sorting out the basics to the broker-agent relationship

We know, you thought the relationships in your life were already complicated. Well, the relationships between you, your agent, and the agent’s broker can be no less confusing. But help is on the way! In this section, we examine the roles and responsibilities of the agent and the agent’s team:

• Real estate agent (also sometimes referred to as salesperson, Realtor representative, or sales representative): Subcontracted by the broker to work on behalf of the buyer or seller or occasionally both (provided buyer and seller agree; the arrangement is known as dual agency, something we discuss in the next section).
• Broker or managing broker/nominee: Legal agent who works on behalf of the buyer or seller, or both; usually serves as an office manager overseeing daily operations and also reviews all transactions.

When you decide to work with a real estate agent, you’re effectively engaging the services of the agent’s broker as well, regardless of whether you meet that individual. The broker is the person you can turn to if things go terribly, terribly wrong and your agent can’t manage the situation. A skilled broker is able to negotiate bureaucratic roadblocks or procedural questions issues or assist if a transaction spirals into a nasty legal dispute (they’re not common, but they happen).

Some real estate agents also have the qualifications to legally call themselves brokers, but they tend to use the more commonly understood term of agent or even representative. In many provinces, a broker’s (or managing broker’s) licence requires additional training and testing and a licence designation beyond that of a salesperson. With this extra education, an individual can own a brokerage or run an office (be the nominee for the office) and ensure that the salespeople and all the office’s trust accounts adhere to the requirements of the provincial Real Estate Act.

A broker or brokerage company, and by extension a real estate agent, may be a seller’s agent or a buyer’s agent. In some cases, real estate agents working for the same broker will represent both the seller and the buyer in a deal. Although each party has its own real estate agent, because both agents work for the same broker or legal agent, the situation is referred to as dual agency. The agent that you’re working with to find a home may show you a property that is listed with her office. If you buy that property, you’ll have to agree to enter into a limited dual-agency agreement.

Another term you’ll encounter is Realtor. This term is a trademark of the Canadian Real Estate Association (www.crea.ca). Only brokers and real estate agents who are CREA members may use this term to describe themselves professionally. Extensive training and continuing education are required. Realtors are expected to follow a very strict Code of Ethics and Standards of Business Practice, designed to protect your best interests.

Understanding the agency relationship

Real estate agents work within a legal relationship called agency, which gives them a mandate to act on their client’s behalf. The agency relationship exists between you (the principal) and your brokerage, the company under which the individual who is representing you is licensed. The essence of the agency relationship is that the brokerage has the authority to represent you as a buyer or seller in dealings with others. Brokerages and their agents are legally obligated to protect and promote your interest as they would their own.

The rules and regulations governing agency relationships vary a bit from province to province. Ask your local real estate board or your provincial real estate council for specifics. The rules lay down what an agent can do on your behalf and how they relate to other parties to the transaction. Specifically, brokerages and their agents must do the following:

• Show undivided loyalty by protecting your negotiating position at all times and disclosing all known facts that may affect or influence your decision with respect to the transaction.
• Obey all lawful instructions you provide.
• Keep your confidences.
• Exercise reasonable care and skill in performing all assigned duties.
• Account for all money and property entrusted to them on your behalf.

Because there are two sides to each real estate deal, the buyer’s and the seller’s, it’s important to know how an agent serves each side. Occasionally, one agent will have dual agency, allowing her to represent both the buyer and the seller. The following sections explain these forms of agency in depth.

Discovering the perfect agent

Picking the perfect real estate agent is partially luck and partially knowing what to look for. If you aren’t sure who would be the right real estate agent for you, ask around. Find out who your family members, neighbours, co-workers, and friends know and trust and ask for that agent’s name. If you’re relocating for work, your employer or the local branch of your favourite bank may be able to recommend some candidates.

Speaking to a head broker at a major real estate company may be extremely helpful. Even if you’re moving across the country, chances are the broker will have a list of contacts for agents working in particular areas, as well as agents who deal with particular types of properties. Search online too; www.realtor.ca is an excellent site that is linked to all real estate boards across Canada and can help you get a feel for local shopping, schools, transportation, and amenities offered in different neighbourhoods anywhere in the country. Through this site, you may also find an agent active in an area you want to check out, contact and interview.

If you live close to the neighbourhood that you’re scouting, a casual drive may reveal the signs of agents who work in the area and are selling the type of property you’re interested in buying. If you find some open houses, stop and take the opportunity to meet the agents. The same holds true if you’re looking for an agent to sell your home: Look around the neighbourhood and see who is the most active. Look for agents who are familiar with the type of property you want or have. For example, if you live in a high-rise condo, see which agents are familiar with the building. Many will trumpet their latest sales with mass mailings in the hope of securing sellers just like you.

Any brokerage or agent worth their salt these days has their own web presence, such as a website and LinkedIn page, which can be a great way to find someone who specializes in the area where you hope to buy or who is familiar with the kind of property that interests you. Most agents’ sites provide the agent’s bio (outlining her real estate specialties), videos and images of properties she is currently representing, and information about recent sales so you can see if she has sold the types of property you want to buy. In addition to listings, these sites often feature helpful information on moving, financing, and what to look for when considering moving to a new neighbourhood in which you’re interested.

After you have the names of a few agents, arrange to meet with them. Ask each of them to bring a record of all the houses they’ve listed and sold in the past year. This way, you can verify what kind of homes, neighbourhoods, and price ranges are most familiar to each agent. You’ll also figure out quickly whether you get along with the agent. Remember that an agent with good people skills will not only be nicer to work with but also represent you well to sellers and be an effective negotiator when the time comes to make an offer.

Even the coolest-looking, most impressive website shouldn’t be used as a replacement for real contact with your potential agent. Meet with agents to know if they have the right personality to work with you and to make sure they understand exactly what you want. Although email and text are great ways to find out some basic information, you can find out a lot about a person through a short face-to-face interview, either in-person or via a videoconferencing app.

Sizing up the candidates

When choosing a real estate agent, look for someone who will work hard for you and who exhibits a high level of customer service and professionalism. Someone who asks questions to clarify what you need and what you want is kilometres ahead of someone who tries to tell you the same information. The best agent will be curious about you, your family, your finances, and your future plans. Your agent should respect your time and independence; a good agent will provide you with all the information you need and give you room to make your own decisions. The best client-agent relationship happens when both sides have similar temperaments in terms of enthusiasm, sense of humour, and energy level.

The best real estate agents score high on this list of qualities. Keep them in mind when you’re asking more targeted questions during your interview. Your agent should do the following:

Making your agent work for you

Explain your home-buying requirements to your agent. Bring along your list of household and neighbourhood priorities (see Chapter 7). When the agent knows your needs, tastes, and budget, the fun really starts — you go on tour. Your agent will show you various homes and neighbourhoods and arrange viewings until you’ve found one you want. At the same time, your agent may help you remove some blinders that you don’t realize you have on by expanding your horizons into other neighbourhoods or even styles of homes. When you’re ready, your agent will present your offer to the sellers. Your real estate agent will help you negotiate the sale terms and conditions and then firm up the deal for you.

To facilitate the sale process, your agent should be able to provide referrals (if you need them) to other professionals, including real estate lawyers (or notaries), appraisers, financial advisers, lenders, contractors, and inspectors. (She should refer you to a couple of each, so that you have a couple of options rather than just her favourites — this avoids any real or perceived conflict of interest.) Take the opportunity to interview these professionals until you feel comfortable you have the right people in place.

A good agent will be adaptable and creative in order to meet your needs. If you can’t visit a house in person, you may be able to arrange for an online tour. If you’re planning a cross-country move, your agent may be able to provide a video tour of some homes that will suit your needs.

When selling your home, an agent should demonstrate a solid grasp of the local market and be familiar with the type of home you’re trying to sell. An agent who’s able to quote a reasonable listing price and provide the rationale for it is a good start. The agent should be well connected and comfortable with the various tools for marketing a property, including dynamic photography and virtual tours. The agent should also be responsive, not only to your needs but those of potential buyers. You don’t want someone who’s going to ignore incoming calls, texts, and emails (and if they’re at all interested in the commission you’re going to pay them, they shouldn’t be ignoring those calls). Most of all, you want someone who has your interests at heart and will honestly and firmly represent you to the buyer as well as advise you on how to best position the property in a given market.

Unless you’re looking in two vastly different areas, we recommend working with one agent only. Most agents have access to the Multiple Listing Service (MLS) as well as other tools, so if you’re using more than one agent and both are familiar with your goals, you’ll likely be referred many of the same properties by both agents. Pick the agent that you feel you can trust and has the time to work with you, as opposed to casting a wide net and using many agents. Your loyalty to the one agent will be rewarded by her faithfulness to you.

Saving the commission

The big reason people like the idea of selling their homes privately is the anticipated cost savings. By selling privately, you don’t pay a commission (the percentage of the sale amount that goes to the agent who made the sale). In some major urban centres in Canada, house prices have risen dramatically. This means that a typical commission is in the tens of thousands of dollars. Homeowners elect for “sale by owner” to avoid paying this large amount of money to an agent, plus the GST/HST. (For details on commissions, see Chapter 15.)

Make sure your lawyer reviews the offer and works with you through the transaction. When selling a property yourself, it’s not uncommon for real estate agents to contact you to see if you’d be willing to pay them a referral fee if they find a buyer for you. However, you’d need to ensure that the buyer is aware that you’re paying a referral fee to the agent facilitating the deal.

If you want to sell your home yourself to save commission on the sale, it’ll take hard work to ready the home for sale, to be knowledgeable about the market, and to have a comfort level with negotiating with professionals. Never sign off on a sale agreement until your lawyer has read it and advised you of any conditions or terms that you need to be aware of that could potentially cost you money — or the deal itself.

Working out the costs of selling it yourself

You’re probably visualizing what you can do with all that commission money you save by selling your home yourself. Well, take those dollar signs out of your eyes! Here are the expensive and troublesome realities you face if you plan to sell your home privately:

• You may have to lower the asking price for your home. If a buyer is considering two similar properties with the same asking price, one being sold by you, the owner, and the other by an agent, you may have to lower your price to offset the expertise and support provided by the agent.

• You incur the cost and hassle of advertising your home. You’ll have to actually sell your house before you can cash in on your saved commission. If you opt to engage a flat-rate brokerage to list your home on MLS, you’re responsible for all measurements of the property and the home, and for all intents and purposes, you’ll handle everything — including fielding phone calls, making appointments, taking pictures, and negotiating the sale of the property.

  Some agents offer à la carte services; for example, you may have the agent handle phone calls and booking appointments, but you handle all showings. Similarly, an agent may now allow you to list the property via their account on the MLS. The agent charges a flat fee for the listing, but the seller handles all responsibilities in regard to the sale.

  You can also choose to post your home’s listing on several “For Sale by Owner” sites for a fee. The trick is to make sure you end up at the site with the most online traffic. You’ll also have to try to keep track of what similar homes are selling for in your area; make sure you can keep track of selling prices on any websites you choose.

• You’re responsible for researching and accurately determining the right price for your home. Pricing your home is very important. If you hire an appraiser to assess the current market value of your home, expect to pay between $200 and $500 for this service.
• You have to make time in your schedule. Selling your house on your own isn’t going to fit neatly into a schedule. You must be very accessible — by phone (voice or text) and email — if you’re going to sell your home privately. Expect prospective buyers to knock at your door at all times of the day and night … regardless of how large the words “By Appointment Only” appear on the For Sale sign in front of your house. You’ll have to accommodate the needs of prospective buyers’ schedules in order to show the home, and if you have a family, you also face juggling their schedules. When you sell privately, you don’t have the luxury of a real estate agent who organizes and administrates the showings of your home.
• You need a clear understanding of all the legalities involved in selling a home. You may not be aware of special legal considerations when selling your home, and you can risk the buyer holding you liable. An experienced agent is on the lookout for any possible legal issues; after all, her commission and her reputation are at stake if something goes wrong with the sale of your home. And if she by chance overlooks a legality, she has errors and omissions insurance to cover her — you don’t! (See the section, “Understanding the Real Estate Agent’s Role,” earlier in this chapter regarding an agent’s roles and responsibilities.)
• You need to keep a clear head. Emotions may cloud your judgment. You need to be professional and objective during negotiations with your buyer. Your personal attachment to the property may prevent you from being an effective negotiator. If you don’t have experience at a bargaining table, you’re probably not the best person to haggle with a potential buyer’s experienced and well-informed real estate agent.
• You need to be ready for real estate agents who will see your “private sale” advertisements and call you. Like any ambitious business people, real estate agents look to expand their businesses, and they’re in touch with the market. When your house appears available, agents will solicit you, hoping that you’re tired of dealing with the headaches of trying to sell your home yourself and will hire them instead.

Your goal is to sell your house and get on with your life. If you’re determined to sell your home yourself, be honest about what you do know and what you don’t know and be realistic about what you can do and what you can’t do. Do your research and hire the necessary experts.

Getting some help

Selling a home is a lot of hard work, which is why many professional agents make a full-time job out of selling homes. If you’re feeling a bit overwhelmed by your decision to go alone and think you may need help after all, you don’t necessarily have to go for the total range of services offered by a real estate agent — and the fees that go with it. Some companies offer different packages, each with a different level of service, depending on how much help you want.

In Chapter 16, we discuss the MLS, which is a great tool for selling your home. Although only licensed agents can list properties on the website, a licensed agent will list your home on the site for a discounted price. As part of this arrangement, some agents will also provide exposure alongside their own listings and signal their involvement via lawn signs.

Don’t forget about the websites made specifically for private sellers to list their properties. They may not have as many listings as MLS, but they’ll help you get the word out. Several are online; just search for “private real estate sale” or “sale by owner”; you’ll also get more info about advertising and other issues you may face.

Maybe you’re a natural promoter and you’ve found a buyer all on your own. (Go on, give yourself a pat on the back!) You feel like an immense weight has been lifted, and that the hardest part is now behind you. That is, until you wake up in a cold sweat, thinking about the tonne of paperwork you’ll have to take care of (and you were never very enthusiastic about numbers or contracts or those other pesky things). Some companies offer a paperwork-only option, and for a flat fee an agent will take care of the purchase agreement and be sure the transaction goes smoothly right up until closing day. Don’t forget that you’ll still need a lawyer (or notary) to handle your sale, and you can have the lawyer review your paperwork if you have any questions.

Knowing what an appraiser looks for

The appraiser applies evaluation criteria to the neighbourhood and house, including:

• Size, age, and condition of the house: Does the home need repairs now or in the near future? Have upgrades, refinishing, or renovation work been put into the home recently? (This part of the appraisal tends to focus on kitchens and bathrooms.)
• Amenities: What kind of luxury features does the home possess, such as a pool, wine cellar, hot tub, solarium, in-floor heating, or four-car garage?
• Neighbourhood characteristics and immediate surroundings: What is access to emergency and fire services, like? Are public transit services nearby? Is the home within what’s considered a safe neighbourhood?
• Special or unique features of the home: Is it a designated heritage home, or is it situated on a ravine lot with a stunning view?

Appraisers are required to do only a visual inspection, but they may probe further. This means the appraisal process can vary in length, from a quick walk-through to an hours-long inspection. An appraisal is an essential part of proper due diligence.

If you’re looking at buying a condo, be aware that an appraiser may not be aware of the status of the condominium corporation, and so he may not take this into account (for more about condominium corporations, refer to Chapter 6). You need to be certain that in purchasing a condo you’re also not liable for a significant bill to replace a leaky roof or aging infrastructure such as the elevator or piping. The appraisal process to determine market value may be a good first step in exploring the impact of these exceptional costs, which should also be flagged in a depreciation report or similar document.

Depending on who orders the appraisal, results can vary. We’ve seen appraisals differ by tens of thousands of dollars based on the reason for the appraisal. Bank appraisals for mortgage purposes sometimes don’t accurately reflect the desirability of the home; for example, they’re commonly thought of to be conservative, to protect the bank’s risk.

Eyeing who needs an appraiser and why

If you’ve enlisted the help of an agent to buy a home, you may not need an appraiser because part of your agent’s job is to evaluate a property for you and advise you on the best offer to win you the property. Your agent will provide you with a market overview, and then determine where the home you’re looking at is situated, price-wise, within the market. With that knowledge, you can go ahead and make an offer to the seller who is within a reasonable range for the value of the home.

On the other hand, if you’re considering selling your home, you may want to consult an appraiser for one of these reasons:

• You may want to know the property’s fair market value and how certain improvements may improve it.
• You may need to know it for tax purposes.
• If you’ve purchased it with a partner (in life or business) and that partner is now your ex, you may need to decide whether to sell it or buy out your partner.

If you’re buying or selling a home but not using an agent, an appraiser is an excellent resource. As someone who doesn’t have an agent to help determine the property’s value, but wanting confidence in what constitutes a fair price, an appraiser can size up the property and based on the criteria explain the home’s market value and even the potential for adding value to it. If you’re super-familiar with the market and totally confident in your ability to gauge its value, then you won’t need an appraiser. Most people, however, will need the help.

In most cases, your lender will ask an appraiser to determine the value of a home so the mortgage amount is aligned with the market value of the property. These days, most residential appraisals are generated automatically by sophisticated software that assesses available sales data and the various attributes of a home to determine its value. The resulting appraisal will let the lender know it’s able to secure its interest in your mortgage and recover what it loaned you in the event you default on your mortgage obligations and the property has to be sold. An appraisal can also help determine the equity in one home if you’re seeking to purchase a second residence for personal or investment use.

Your mortgage lender will probably insist that its appraiser conduct the assessment of the home you’re buying, even if you’ve commissioned your own appraisal before submitting an offer. If so, you have no say in the choice of the appraiser. Don’t worry. More than likely the lender’s appraiser is both qualified, accredited, and experienced. After all, a financial institution depends on the appraiser’s expertise to decide whether to lend out hundreds of thousands of dollars. Bear in mind that if your lender orders the appraisal, you likely won’t receive a copy. Ask to see a copy of the appraisal if possible because chances are you’ll pay the fee for it. (We discuss appraisal fees in the section, “Knowing how much you can expect to pay,” later in this chapter.)

Recognizing a good appraiser

Chances are good that you won’t have to choose your appraiser — if you’re a buyer, your lender will probably handle that for you. If the responsibility does fall to you, make your choice based on more than just the appraiser’s web appeal. Consult your lender to see who it recommends. On the other hand, if you’re selling your property and need an appraisal to accurately determine its market value, you may need some tips.

Certification is what you look for in an appraiser, plain and simple. An independent appraiser should have an AACI (Accredited Appraiser Canadian Institute) or CRA (Canadian Residential Appraiser) designation, both of which are trademarked and awarded by the Appraisal Institute of Canada (www.aicanada.ca). Make sure you ask to see your appraiser’s credentials.

Reputation is also key. If you do need to hire an appraiser, work with someone you can trust. Ask any friends who’ve bought homes recently for their suggestions, or contact the Appraisal Institute of Canada for a list of professional appraisers in your area. The institute’s website also has a Find an Appraiser feature that has two different search options:

• If you need an appraiser but have no idea where to start or who to look for, never fear. Simply enter the criteria for your specific situation; for example: Canmore, Alberta, Single Family Rural, and Appraisal Review. When you submit the information, you’ll be provided with a list of accredited appraisers in that area who best fit your needs. You’ll also get all the necessary contact information, including phone numbers, email addresses, and websites, if they have one.
• If you’ve been given the name of a top-notch appraiser (your great-aunt’s neighbour’s babysitter says she’s fabulous) but you’re not sure how to contact her, just enter the last name of the appraiser into the search box. If she’s in the database, you’ll get that much-sought-after contact info.

An appraiser isn’t a property inspector. An appraiser focuses on value, whereas a property inspector assesses the condition of a property with a view to making sure it’s in good working condition and fit for occupancy. An appraiser can tell you the value of a property, but that value can change if the property inspection uncovers issues such as a cracked foundation or deteriorated piping or wiring that looks like wool the cat played with. This isn’t to say an in-person inspection will be superficial, but the appraiser has a different objective than a property inspector. Refer to Chapter 10 where we discuss property inspectors in greater detail.

Knowing how much you can expect to pay

The price of an appraisal varies depending on how difficult a job it is for the appraiser. If there have been many recent sales in the neighbourhood and the home doesn’t have scores of out-of-the-ordinary features, the assessment will be straightforward and cheaper. You can expect to pay anywhere from $200 to $500 for an appraiser’s services.

If you’re buying a property, you may be able to work out an agreement with your lender to pay the appraisal cost. Remember the old saying, “if you don’t ask you won’t receive”? Many lenders do cover the appraisal cost or have a list of approved appraisers that they frequently use and trust. After all, the lender wants to reduce its potential financial risk by being satisfied the property is worth more than the mortgage requested. Even though some lenders will waive the appraisal fee to secure a client’s business, many will do so as a matter of course if you ask.

Don’t forget to ask your agent to write into your offer to purchase that it’s (1) subject to financing, but also (2) subject to the buyer (you) receiving a satisfactory appraisal. (See Chapter 9 for details on adding conditions to your offer.) This clause will allow you to obtain independent verification of the property’s value as well as ensure that it’s in line with your mortgage financing.

If you’re selling a property yourself, offering an appraisal as part of the documentation regarding the property may help you secure a better offer from a potential purchaser. It shows that you haven’t just chosen a price out of thin air, but have reasons for the price you’re asking. The appraisal may even show a buyer the latent value in the property.

Taking care of business: What your real estate lawyer does for you

Besides needing a lawyer to check all the niggling little legal bits near closing time, you may find a lawyer can be indispensable early on in the deal as well. He’s there to protect your rights and to make sure every part of the contract is A-okay. In the following sections, we explain what a lawyer does for you during the home-buying experience, both before and after the closing date.

Finding a lawyer or notary

Look for someone who specializes in real estate law. In most of Canada, this will be a lawyer; in Quebec, you’ll hire a notary. Friends, neighbours, or relatives who have recently bought or sold a home are a good source of recommendations. Your real estate agent, broker, or lender will also have contacts among local lawyers or notaries and should be able to give you the names of several real estate specialists to choose from. You can also find legal associations on the Internet.

The place to start your search for a reliable lawyer is within a self-regulated organization, whose members must be trained professionals and meet set standards. If you have a lead for a lawyer in your area, the best use of your Internet time will be spent visiting the Federation of Law Societies of Canada (www.flsc.ca). The Federation provides links to all the provincial and territorial law societies’ websites. Most of these sites allow you to look up lawyers for the current members of that province’s law society.

Another excellent site for verifying a lawyer’s status is www.canadianlawlist.com, a searchable online database that boasts listings for 55,000 lawyers and 19,000 law offices. Simply set the location to yours and the “areas of practice” field to “real estate,” and within seconds you’ll be looking at a comprehensive list of lawyers in your region.

When you get the name of a lawyer you’re thinking of using, you can always enter her name in your favourite search engine. For example, the lawyer may have her own website, which will give you more information, or you may find out she’s nominated for “Lawyer of the Year.” On the downside, your search may also bring up stories about her sordid past.

Just because someone’s a lawyer doesn’t mean that she can handle a real estate transaction for you. Chances are, your best friend’s shark of a divorce lawyer is excellent — but she’d be a shark out of water when it comes to your contract of purchase and sale.

Knowing what to look for in a lawyer or notary

The most important thing in any relationship is finding someone who speaks your language. You probably don’t speak legalese, so as you interview lawyers and notaries, make sure you know what they’re saying, that they’re open to your questions, and that they take the time to make you feel comfortable. If they make their fee structures sound complicated, they may not be able to adequately explain the ins and outs of your agreement of purchase and sale or other legal documents involved in the purchase of your home. Choose a lawyer you can understand and who has the patience to explain terms adequately.

The lawyer should be familiar with local laws and issues. Tenancy laws, title registration procedures, and local property regulations can all change periodically. A local real estate lawyer or notary is up to date on all regional laws and probably has good connections with the enforcing bodies. Finding someone who is local is important because if something crops up at the last minute that requires you to head to the lawyer’s office, you don’t want to drive two hours to sign a single piece of paper.

Costing out a lawyer’s fees

We’re sure you already know that a lawyer’s fees can be positively heart-stopping. When you call a lawyer to make an appointment, ask how much it will cost, what approximate amount you’ll have to bring into the lawyer’s office, and the preferred method of payment. Make sure that you specifically ask for the all in cost, which will include all your legal fees, any applicable taxes and adjustments for property taxes, and other prorated fees. Ideally, you’d be able to sit down and chat with the lawyer about her fee structure and her level of service and expertise. But be prepared — many busy lawyers will be happy to provide a quote for their fees over the phone, but they may not be available for an interview or consultation just to explain their fee structure.

Lawyers usually charge a flat fee for the service required (the handling of the sales transaction, for example). These flat service fees are often around $300 to $500, but that amount doesn’t include the total cost of their legal services. You also pay disbursements and taxes. Disbursements are any fees that your lawyer encounters while working for you. (Disbursement fees can include, for example, courier fees, registration fees, long distance phone calls, reproduction costs for documents, and any other costs your lawyer pays on your behalf.) And, of course, you’re responsible for the tax on any goods or services provided. An average all-in cost for the straight-forward sale of a residential property with a single mortgage, which can be discharged using the proceeds of sale, may be $500 to $1,500. The cost varies, however, depending on the complexity of your case.

When contacting a real estate lawyer about flat fees or all in costs, you should also ask what the lawyer’s rates are, in the event that something goes wrong and you need extra services. Most of the time, extra services can be obtained on an hourly rate basis.

Don’t base your final choice of lawyer or notary only on price. More experienced lawyers often charge higher rates but get more done in less time, saving you money in the long run. Also, keep in mind that you’re hiring a lawyer to give you peace of mind. A competent lawyer or notary should be able to explain every step of the transaction to you in clear and simple language regardless of whether the firm occupies a flashy corporate office tower or a modest street-level suite.