Understand Cost
(This is an expansion of a more general article Four Steps to Finding the Right Lawyer, and a continuation from Step 1: How to Identify Your Problem and Goal)
The cost (or price) for legal services is useful for much more than just setting your budget. Cost can also tell you about the expertise, specialization, and organization of a lawyer. This means you can use cost information to determine if a lawyer is the right fit for your situation.
Here’s how.
First, determine your problem and goal. See Step 1: How to Identify Your Problem and Goal.
Second, recognize that law is complicated, and today we live in an era of specialists. You want an estate planning lawyer for estate planning, a DUI defense lawyer for DUI defense, or a divorce lawyer for divorce. Obviously, you DO NOT want an estate planning lawyer for DUI defense—or any other mismatch.
But law is even more specialized than you might think. Within the specialties, there are sub-specialties. For example, some estate planning lawyers work exclusively with the ultra-wealthy. If you’re not ultra-wealthy, you’ll probably overpay one of these lawyers for your estate plan (and might end up with something overly-complicated).
Third, arm yourself with knowledge about cost. Before you talk to a lawyer, figure out what a reasonable price would be for legal fees in your situation. That way, you can compare what they tell you to the current market prices for those services. And the best way to find market prices for legal services is with GavelBook.com.
Fourth, talk to your lawyer—and make sure to completely understand their proposed fees. If their fees are in line with GavelBook.com’s ranges, you might have found the right lawyer. If their fees are unusually high or low, ask them to explain why. (GavelBook’s Attorney Fee Reports also give you additional information that can help you better understand all the fees and costs associated with a legal service.)
There are countless reasons why lawyers charge non-standard fees—so, you’ll have to use your gut and intuition to evaluate their response. But, to give you some insight, below are some possible reasons a lawyer might give for their fees, along with a GavelBook thought.
Lawyer: My fees are high because I’ll have this done twice as fast and twice as good as anyone else.
GavelBook Thought: This is a good explanation, and the services might be worth the extra fees if the lawyer follows through.
Lawyer: My fees are high because I bill by the hour, and this is going to take X hours.
GavelBook Thought: This, by itself, is not a good reason. It might mean that this lawyer doesn’t make efficient use of drafting technology, bills for work that should be delegated to paralegals, or is disorganized. It’s impossible to know—so we’d ask the lawyer for a more detailed explanation.
Lawyer: My fees are high because your particular situation is more complicated than shown in the GavelBook report. Usually, I charge that amount. But you have Y complicating factor, which is going to take more drafting/negotiating/etc. time and effort.
GavelBook Thought: This is a good explanation. The lawyer fully articulated the reason for the fee increase with understandable and specific justifications. This lawyer might be an option for you.
Lawyer: My fees are low because I’m new to this type of law.
GavelBook Thought: We admire the honesty, and that’s a good trait for your lawyer to have. You’ll have to make a judgement call here: Are you willing to risk slow, inefficient, or mediocre service for lower fees? If you are—then go for it; if not—find someone else.
Lawyer: My fees are low because I’m very good at what I do, and I’ve streamlined my practice to be extremely efficient.
GavelBook Thought: Hooray! This is possible today with the tons of legal technology (like drafting programs) and efficient business practices. This lawyer might be a good choice.
Good luck!