The Players in a Real Estate Transaction
We’re gonna need a few more chairs….
How many people do you think it takes to close a real estate transaction?
Many first time buyers might think their deal will only involve their agent, the sellers, and the sellers’ agent. They are then pleasantly surprised as the clown car starts to unload.
In fact, the average transaction will actually involve upwards of 10 parties with different responsibilities. AND, each individual brings a special skillset to the table, playing a vital role in helping you secure your dream home.
Let’s get to know each type of player at a basic level:
Lender: All non-cash deals will involve a lender. If you are getting a mortgage you can expect to become best friends with your loan processor. You will speak with them A LOT. They will order your appraisal and ultimately decide if you will receive a loan or not. They are the gatekeeper to your dreams.
Appraiser: Appraisals, which are ordered by the lender, are performed by an appraise-r (imagine that!) and they will provide an appraised value of the home. I.e. they will tell you what the home is worth, despite the list price.
Title Company: The title company will close your loan and provide you with title insurance. Expect to hear from them with your Title Commitment and also talk with you about coordinating your closing. Your closing will most typically physically take place at the Title Company. The moment that you sign the dotted line!
Inspector: Inspectors take a look at the property and ensure that you are buying a quality house with no major issues. You may have multiple inspectors that include a structural engineer, radon company, sewer company and/or mold inspector to name a few. The list grows!
Surveyor: If your agent advises, you may have a survey completed. Your surveyor will measure a property’s boundary lines. ie.e They will confirm the official lot size and location to discuss any easements or encroachments with you and your agent.
Real Estate Agents- Wait a second… why isn't the agent first on this list? Well, your agent is responsible for coordinating with ALL the above parties. Because you don’t have time for that, right? A good realtor will treat all players as part of your team to work together and help you successfully close.
Even more of a reason to have a Realtor who understands all the parties and their involvement with your transaction.