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teton
Regular Contributor

attorney fees

I had my realtor recommend an attorney for my home purchase. She said his fee ran about $450. I just got a letter from the attorney outlining what he will do for me. He states his fee is $600. Is this competitive? In the letter, it also states that once he and the seller's attorney go over the contract and it is finalized, I need to increase my earnest money to 10% of the purchase price. Is this typical? I am financing FHA and my down payment and closing costs don't come any where near 10% and the seller is kicking back 6% at closing to cover all the costs except what I am required to pay as a buyer.
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ShanetheMortgageMan
Super Contributor

Re: attorney fees

Are you in Massachusetts, New York or northern NJ?  Most states don't use attorney's but there are a few who it's standard practice in.  Those areas I listed use attorney's for purchase contract review very often.

 

$600?  Sounds about average.  I've seen higher, I've seen lower.

 

I've never heard of an earnest money deposit equivalent to 10% of the purchase price - you are sure they didn't mean 1%?  1% is very common, 10%... is ridiculous IMO. 

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