Real Estate 101: A Guide To Who's Who In Your First Real Estate Transaction

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For many people, buying and selling real estate is the largest transaction they will ever be involved in. It can be unnerving to sit at a table full of people you don't know and sign paperwork to buy or sell a quarter of a million dollars worth of property or more. It helps to know who's who at the table and what team they are on. 

Neutral Parties

1. Appraiser: The appraiser works for the buyer's bank. His job is to look out for the best interest of the bank. He or she assesses the value of the property by analyzing it and other, recently sold homes in the area to make sure the offered price is a realistic amount for the bank to loan. This occurs several weeks before the closing. 

2. Title Company: A title company's job is to research the property itself and make sure that there are no other mortgages or liens on it. The title must be 'clean' for the sale to proceed. In other words, they want to make sure that it is 100 percent the seller's home to sell and that, once purchased, the buyer will have no one stepping up to lay claim to the home. While they are hired by the seller's agent, they are a neutral party. 

3. Real Estate Attorney: Depending on the state you live in and the circumstances of the sale, the closing may be facilitated by the title company or it may be handled by a real estate attorney. Someone needs to be in charge of making sure all responsible parties in the transaction sign and initial the paperwork in all the right spots and that the paperwork is filed with the appropriate officials after the closing. The real estate attorney is a neutral party as well. 

Team Seller

1. Listing Agent: A listing agent is the leader of Team Seller. They work exclusively for the best interests of the seller to get the house sold for the highest possible price in the least amount of time. Buyers have been known to try and make an offer on a house without an agent, working the assumption that the seller's agent can work with both parties and money can be saved. While this is occasionally possible with a "dual agency" contract, it is simpler when each party has their own agent looking out for their own best interests. 

2. Transaction Coordinator: A transaction coordinator is part of the listing agent's team. He or she is the primary point of contact after the offer is accepted until the day of closing, keeping all parties informed of dates, handling all the documents, and managing the work flow for the transaction. While he or she is a member of Team Seller, their primary goal is to get to closing, which is beneficial to everyone involved.   

Team Buyer

1. Buyer's Agent: The buyer's agent works exclusively for the buyer, making sure they buy a solid house, in a good area, and for a great price. They tirelessly show as many homes as the buyer needs to see before making a decision, offering their expertise and advice along the way. The best part of this relationship, however, is that buyers do not pay for these services. A buyer's agent is paid for -- albeit indirectly -- by the seller. The commission that a seller pays is split between the listing agent and the buyer's agent.  

Knowing who all the players are and what team they are on is a way to feel more comfortable about the game when you sit down at the closing table. To learn more, contact an office like Blake Law Office.

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2 November 2018

A First Home Purchase

Are you hoping to purchase your first home in the near future? Perhaps you’ve already found the house of your dreams but still need to make an offer on it. Before signing on the dotted line, consider hiring an experienced real estate attorney. A real estate lawyer can help you complete the enormous amount of paperwork you’ll need to fill out during the closing process. This professional can also help you successfully purchase a home that has a lien on it. On this blog, I hope you will discover the advantages of securing a real estate attorney during the complicated home buying process.