On Real Estate & More – December 2016/January 2017
Purchasing property is one of the biggest decisions most people will ever make, and your real estate broker is essential to making it happen. But it takes a team of professionals who work with your real estate broker, and a good Realtor will have an established team to make the transaction as smooth and timely as possible. Knowing who these professionals are and what they do will help you have a better understanding of how each one contributes to the process and how they work together as a team. This will help you make an informed decision on the team you want to use to successfully close your real estate transaction.
Title Company—Title companies play an important role in processing real estate transactions. They work with all parties involved in a transaction, including but not limited to the buyers, sellers, real estate brokers, and lenders for both sides. Acting in the interest of every party involved, the goal of a title company is to establish an accurate ownership and lien history of the property, determine if there are other factors that may affect the usability of the property, make sure the closing documents are accurate, and facilitate a successful closing.
Lender—Financing in the form of a home mortgage is a critical component of many real estate transactions, as the mortgage provides the money needed to complete the purchase. Lending sources for home mortgages include banks, credit unions, and mortgage companies. Buyers also have the option to secure a mortgage with the help of a mortgage broker who are essentially middlemen between borrowers and lenders. The lender is the entity who will be making the loan to the buyer and sending the funds to the closing.
Real Estate Appraiser—A real estate appraiser is licensed to assess properties and determine its value based on factors including location, upgrades and improvements, and recent sale prices of similar, nearby homes. The appraiser is typically hired by the buyer’s lender to determine whether the condition of the home supports the agreed-upon purchased price.
Home Inspector and Other Inspectors—The role of a home inspector is to perform a complete physical inspection of the home and outbuildings, including its major components and systems. Results of the inspection are usually in the form of a report that details the property condition. As a buyer, this report helps you make informed decisions about pricing negotiation and moving forward with your purchase. The buyer may also decide to have other inspections conducted, depending on the specific features of the property. Other inspections include, but are not limited to septic inspections, well flow tests, water quality testing, and pool inspections.
Insurance Agent—Insurance agents are licensed professionals who help buyers with insurance needs. In most cases, the lender will require proof of property insurance in order to close the transaction.
Real Estate Broker—Licensed to handle real estate sales transactions, real estate brokers play a major role from the beginning of a real estate transaction through its successful completion. Their role can best be described as facilitating the various components of the transaction. This includes coordinating people and paperwork; simplifying complexities of the transaction; guiding clients through the process; and handling the details of the transaction.
As you can see, these professionals play different and important roles in a real estate transaction. Being informed about how they can help you is beneficial whether you are buying or selling. These professionals are there to provide information and advice that will help you make informed decisions. This in-turn results in a more successful, and less stressful real estate transaction for you!