Third parties involved in a home sale
Third parties involved in a home sale
October 14, 2011
A number of third parties can be involved in the search for, sale or purchase of a home, and first-time home buyers may be hard-pressed to keep them all straight. Real estate agents are an excellent source of help, since they can guide their clients through the process and deal with the complexities on a regular basis, including interacting with and learning about other professionals.
According to SmartMoney.com, home buyers without an agent are generally at a disadvantage, particularly when dealing with an appropriately represented home seller. While the home seller's agent is not working against the buyer at all, and does want to strike a good deal, he or she is responsible to the current, not future, homeowner.
Appraisers and inspectors
Without a good agent to advise them, first-time home buyers lack a source of information on the process. For example, the inexperienced may be unfamiliar with home appraisers and inspectors, unaware of them completely or confusing the two.
According to MSN Real Estate, home appraisers are commonly hired by the bank or lending institution to ensure the property it is preparing to offer a mortgage loan for is worth the amount being paid. Home buyers may also retain an appraisers services to confirm that a seller's price is fair and reasonable. In some cases, home sellers may hire an expert as part of setting a value on their home.
Inspectors, on the other hand, are professionals at confirming that a home is in good condition. While they examine many of the same factors as appraisers, their concern is not so much with setting a price as determining what flaws a property has. They may reveal termite or water damage, poor quality construction materials, or confirm that a home is in the condition its seller promised.
Knowledge and contacts
New home buyers may be lost in the complexity of the process without a real estate agent to guide them, uncertain who an appraiser or inspector works for and whether their opinion can be considered impartial.
SmartMoney.com notes a good buyers' agent will be accustomed to working with these professionals, and possibly others. Their experience and contacts may allow them to locate an appropriate contractor, if the home buyer decides to purchase the house and then have some work done, for example.
In some states, real estate attorneys or other professionals may be involved by necessity or custom, and an agent will understand what the individual is responsible for, what the purpose of specific documents is, and other particulars.