All Dream Properties - Real Estate Tools for Buyers, Sellers, and Realtors

Education

When buying or selling a property there are three primary people who take on the liability of the transaction.

1) You – Any attorney would say it is foolish to represent yourself in a real estate transaction. It is true you could save the commission by doing it yourself; however you end up taking on a new task that is quite time consuming – like a second job! Are you sure you want to take on the responsibility and challenge of knowing the regulations for handling a real estate transaction? Consider using the appropriate professionals to help you navigate this important transaction.

2) An Attorney – Some realtors would say it would be foolish to have an attorney represent you, as they get paid even if the transaction fails to close. An attorney would have more of a vested interest in dragging the transaction out.

3) A Realtor – Your Realtor has a vested interest in making sure your property sale is recorded, as this is necessary for them to receive their commission.

Having a professional Realtor help you price your property, based on an accurate market analysis and knowledge of the area, will help you attract more buyers. In addition, they can offer advice to help improve the condition of the property. Statistically more buyers prefer properties that look like new. If the property is priced right, for them, the condition rarely matters; because buyers are looking for VALUE!

If you are a buyer or seller it is important to know the industry related businesses, and who normally pays what:

1) Inspectors – Buyer typically pays them to have an opinion of the issues related to the property.

2) Contractors – Must be licensed and bonded to make sure the work they do is safe and up to code. Sellers will typically pick up this cost so the buyer can get their financing.

3) Appraiser – Buyer typically pays them through their lender to have an opinion of Value related to the property.

4) Lender – Buyer and seller typically share this 1-2% fee (based on sale price of the property) Anymore, the seller pays this fee more than the buyer.

5) Title Insurance Company – It is critical to make sure there are no encumbrances or additional liens on the property. Both Buyer and Seller, although the Seller pays these people more than the buyers.

6) State – They definitely want their recording fees. (Both buyer and seller pay them)

7) Realtors – Sellers typically pay the Realtor’s commission. It is a rare instance when the Buyer pays this fee. The realtor makes it their business to know all the players and will typically be able to get the job done with the least amount of hassle and head aches; ultimately making this a dream transaction for you!