On Real Estate & More – August 2023

Purchasing a property is one of the biggest purchases most people will ever make, and your real estate agent is essential to making it happen. But it takes a team of professionals who work with your real estate agent, 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 to help you successfully close your real estate transaction.

Title Company—Title companies play an important role in processing real estate transactions. The title company works with all parties involved in a transaction, including but not limited to the buyers, sellers, real estate agents, 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. Close communication with the escrow team throughout the process is essential in any real estate transaction.

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, mortgage companies, or even private lenders. The lender is the entity who will be making the loan to the buyer and sending the funds to the closing. Your real estate agent works closely with the lender to work through any issues that may impact the buyer closing in a timely manner.

Real Estate Appraiser—A real estate appraiser is licensed to assess properties and determine its value based on several 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 purchase price. Your agent may provide comparable home sales to the appraiser prior to the appraisal being completed and guiding negotiations if a property does not appraise at the purchase price value.

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. Your agent assists in recommending what type of inspections might be most helpful, scheduling and attending the inspections, as well as negotiate any needed repairs and/or credits with the seller.

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. Your real estate agent can help with recommendations for insurance companies, especially with issues such as fire safety and rural properties, as well as making sure you obtain insurance prior to closing.

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 negotiations, and handling the details of the transaction.

As you can see, these professionals all 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!