Who Are The Key Players in a Real Estate Transaction Besides Buyers and Sellers

When you buy a home, you will need assistance from real estate professionals. But who is involved in most real estate transactions, and what do they do?

We will look at the essential parties in a real estate transaction so you know what to expect during the process.

While there are many professionals in a real estate transaction, these are a few of the most vital.

Real Estate Attorney

A real estate attorney or lawyer has experience dealing with real estate transactions. They are licensed to practice real estate law, prepare and review contracts, and oversee closing.

Many consumers will ask what real estate attorneys do or their role in a home purchase.

Buyers and sellers can hire real estate attorneys to protect their interests during the transaction. Mortgage lenders or title companies can also hire an attorney to oversee closing on their behalf.

You might need to hire a real estate attorney depending on the law in your state, or you might feel you need one anyway to protect your interests. If the purchase involves unusual circumstances, they will protect your interests and deal with any unexpected issues that can happen during the process.

Real Estate Agent

A real estate agent puts together buyers and sellers and acts as their representative during the transaction. They are trained and licensed and usually work within a real estate brokerage.

Both sellers and buyers can hire real estate agents, but the seller will pay the agents’ commission. Their commission is based on the price the home sells for and is usually 5-6% of the home's sales price.

Agents can specialize in working for buyers or sellers, making sure their clients get a better deal. A buyer’s agent will submit the offer to the seller’s agent, and both agents will negotiate over the price, repairs, and other issues.

The listing or seller's agent calculates the market value and accurate pricing.

The seller's agent lists the home, markets it, and shows it to suitable buyers. They often advise sellers on how to get the property ready for sale or stage it correctly.

Mortgage Lender

A financial institution or bank that provides home loans is a mortgage lender. They will have set rules regarding eligibility, loan terms, repayment schedules, and interest rates.

As a buyer, you should compare lenders and get preapproved for a mortgage before looking for a home seriously. This will show you how much you can afford to spend so you don’t waste time looking at homes out of your price range.

To assess the risk, the lender will evaluate the buyer’s finances, credit history, and score. The type of mortgage, the down payment, and the loan term will all contribute to the amount the buyer will pay each month to the lender.

All this helps the lender decide how much the borrower will have to pay in interest on the home loan.

Real Estate Appraiser

An appraiser in real estate is an independent professional with the job of determining the value of a home. The appraisal provides an unbiased home valuation based on many different factors.

The appraiser considers the condition of the home, available amenities, the size, and many other variables when assessing. The home is compared to similar properties sold recently in the same area, with value-added or subtracted depending on the differences.

The buyer will pay for an appraisal usually required when buying a home using a mortgage. The lender wants to see that the home is worth the money the buyer has offered to pay. If they were to lend more than the home was worth, they could lose money should the buyer default.

Home Inspector

Buying a home is the largest purchase most people ever make, and an inspection should ensure you aren’t making a mistake. A home inspector is licensed and experienced at reviewing the home's structure to uncover any problems the buyer would want to know before they complete their purchase.

Inspectors are normally hired after an offer has been accepted and a purchase contract signed. Along with the home's main structure, foundations, roof, and walls, the inspector will check the plumbing, HVAC systems, included appliances, and more.

The inspector will create a report detailing their findings. This lets buyers see the home's issues and what might become a problem later. This can be used to negotiate with the seller to fix important problems.

If that isn’t resolved satisfactorily, the buyer can walk away if there is a home inspection contingency in the purchase contract. There are many essential questions buyers should be familiar with about inspections.

Final Thoughts on The Parties to a Real Estate Transaction

The most straightforward real estate sales are the ones where the best professionals are involved. When you have pros in your corner, they can resolve problems when they arise quickly.

Assembling a team of great people is wise to ensure you purchase a home without a hitch.