Since you’ll be working with many different types of professionals during your homebuying process, you should be aware of who is involved and their role. Use the list below to learn about all the players involved in your real estate transaction and how they will help you purchase a home.
- The Agent
A professional with a real estate license that represents a buyer and/or a seller during a real estate transaction. Agents act as a liaison between all parties in a real estate transaction and they can help you understand the real estate process, negotiate price, and process paperwork.
- The Broker
An agent that has gone through more training, has passed more exams to receive a more advanced real estate license, and can, therefore, own a real estate business and hire salespeople. There are three major types of real estate brokers: a designated broker, who manages and oversees the brokerage; a managing broker, who manages the day-to-day operations like managing salespersons; and an associate broker, who acts as a salesperson with more experience and education.
- The Seller’s (Listing) Agent
The person who works with the home seller during a real estate transaction. Some responsibilities of a seller’s agent are to list the property they are selling, help set a price for the home, market the home to potential buyers, negotiate offers, coordinate the sale and closing process, and more.
- The Buyer’s Agent
The person who works with the home buyer during a real estate transaction. They are responsible for providing guidance through the buying process, finding their client a suitable property to buy, scheduling showings, negotiating price and terms of sale, and more.
- The Mortgage Lender
The financial institution that lets you borrow money for your mortgage loan. Since you’ll be working closely with your lender, even after you close. So, it’s in your best interest to choose one with good communication skills and to build a relationship with them. Since a lender can help you determine a price range for your budget for a home, it’s recommended that you start working with one before you begin searching for a home to buy.
- The Title Company
The title company oversees the escrow process and the title search. There are a number of steps to perform in the closing process. You will typically deal with one escrow officer.
- The Appraiser
An independent third party that determines the monetary value of the property. They will do a walkthrough of the home, which includes examining the exterior, interior, amenities, and upgrades.
- The Home Inspector
An independent third party that presents the buyer or the seller and determines the structural integrity and safety of the property as well as identifies any damages to the home.
- The Closing Attorney
A real estate attorney who specializes in real estate law. They can provide guidance and help you understand the legal documents associated with a real estate transaction. Since they work with both the buyer and sellers, you will usually encounter them during the closing phase of your transaction.
Since every state has different rules that govern a real estate transaction, and every transaction is unique, there may be more or fewer people involved in your specific transaction.
Ask your Realtor about who will be involved with your home sale or purchase.
Next up is “The Advantages of Working with a Real Estate Agent“