Who’s involved in the
THE BUYING/SELLING PROCESS
and the role of each individual in a Real Estate transaction.
It is to your advantage to be familiar with the team of professionals typically involved in a real estate transaction. Why?
When you know who these professionals are and what they do, you enter your transaction a more informed consumer. You have a better understanding of how each professional contributes to the process and how these experts work together as a team.
In a real estate transactions everyone from the real estate agent, mortgage broker, title company to the buyer and seller each have an important role in the transaction. It takes cooperation and due diligence from all parties involved to bring a successful closing.
| The Seller’s Agent | The Seller’s (Listing) Agent is a salesperson who lists the property on the MLS (Multiple Listing Service), and markets the property on behalf of the Seller in order to find a ready, able and willing buyer. The Listing Agent works on commission, meaning they only receive payment if and when the deal successfully closes. The Seller pays the Real Estate Agent’s commission. |
| The Buyer’s Agent | Plays a major role from the beginning of a real estate transaction through its successful completion. Their role can best be described as orchestrating the various components of the transaction. Coordinating people and paperwork; simplifying complexities of the transaction; guiding clients through the process; and handling the nitty-gritty aspects of the transaction. In addition, the agent can often help you locate the other professionals mentioned here. |
| The Home Inspector | The home inspector is an independent third party hired by the buyer to perform a complete physical inspection of the home including major components and systems. Results of the inspection are usually delivered in the form of a comprehensive report that details property condition and if there are any defects. This report helps the Buyer make a more informed decision about whether the condition of the property is worth the agreed upon purchase price, or if he will renegotiate it, ask for seller’s contribution to the repairs or simply move forward with the purchase. |
| Loan Officer | A financial professional who will determine approximately how much money you’ll be able to borrow for a mortgage loan. Not to be confused with the Loan Servicer who represents the financial institution that loaned you the money. The Loan Servicer handles the day-to-day tasks for managing your loan. Typically processes your loan payments, responds to borrower inquiries, keeps track of principal and interest paid, and manages your escrow account. |
| Mortgage Lender | The business person or financial institution that provides the money you’ll use to purchase your new home. They are the entity who will actually be making the loan and sending the funds to the closing. By contrast, a mortgage broker does not make the loan or typically fund the closing. A lender does not “shop around” for a loan on behalf of a buyer, as would a mortgage broker. |
| Mortgage Broker | An individual or organization that brings together mortgage lenders and borrowers. A mortgage broker does not lend money, simply acts as a middle-man between the buyer and the lender. The broker works on commission, and thus only gets paid if the deal successfully closes. The mortgage broker cannot promise the Buyer any final result and does not have the ability to guarantee a loan approval. |
| The Home Appraiser | The appraiser is an independent third party who, after performing a thorough assessment process, provides an impartial opinion of property value. Lenders use the appraised value as a factor in determining the mortgage loan amount. The property serves as collateral for the mortgage therefore, Lenders want to ensure that collateral is adequate in case the loan is not repaid. A professional real estate appraiser plays an important role in your transaction. |
| The Attorneys | Attorneys protect your interests no matter which side of the real estate transaction you’re on. They can draft, review, and advise on contracts, offers, and other documents as well as provide legal advice and help resolve matters that arise during the transaction. They also can handle the closing, the final step in your real estate transaction. Another very important way, an attorney protects the interest of buyers by ensuring that the seller is conveying clear title to the property. In other words, that the title is free from liens, taxes or any other defects that would adversely affect ownership. |
| The Title Company | A title company makes sure that the title to a piece of real estate is legitimate and then issues title insurance for that property. Title insurance protects the lender and/or owner against lawsuits or claims against the property that result from disputes over the title. Title companies generally act as the combined agent of the insurance company, the buyer, the seller, and any other parties related to a real estate transaction, such as mortgage lenders. The title company reviews title, issues insurance policies, facilitates closings, and files and records paperwork. |
| The “Closer” | Is the employee of a title company who facilitates the closing. The “Closer” will usually:
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