George Campolo, a winner of the 2017 RE/MAX Executive Club Award, understands that buying a home is most often the single most significant investment in peoples’ lives. There are many steps along the way to getting the transaction closed to the satisfaction of the buyer and seller while protecting them from potential pitfalls.
The Real Estate Agents
Though there aren’t always real estate agents involved on both the buyer and seller sides, it is the most common scenario. The agents each represent either the buyer or seller on one side of the transaction, and their role is to help their clients each reach a successful conclusion to the transaction. They will facilitate the flow of paperwork and all the other steps involved in the process, of which there are many. Many times they will handle unusual circumstances on their own to keep things moving, such as dealing with governmental agencies with problems like in-ground oil tanks.
In short, the buyers’ agent works with the buyers to make sure that due-diligence happens every step along the way. That includes guiding the buyers in their review of documents, helping with the inspection, working with the attorney and loan originator, and so much more.
The sellers’ agent helps them review documents, inspection results and negotiated repairs, and to negotiate any requests for any other changes to the original contractual agreement. They help the sellers to get ready to vacate the property as well.
The Title Insurance Company
This company is where most transactions get processed, and the “closers” in the title insurance company bring together all of the documents and move the process along through closing. The insurer affiliated with the company provides the title insurance policy.
The title insurance company does thorough research of the property’s history as recorded in the courthouse records. This research is where they would find any liens against the property or other claims that threaten a clear title for the buyer(s). The title binder (or commitment) is the document prepared to list any requirements to make the issuance of the title insurance policy possible.
Though a full survey is often not required for a transaction if one has been done previously, there will be an abbreviated inspection of the property, sometimes called an improvement location report (or ILR). The surveyor is going to draw up the property with the location of the structures and improvements to indicate any possible encroachments or issues. An example would be a neighbor’s new fence being a foot or so on the property.
The Home Inspector
The home inspector performs a thorough inspection of the property, and good ones provide a comprehensive written report with photos detailing the properties general condition and noting any problems. These can include many minor things like cracks in counters to major issues like a rotting roof. The report often results in negotiations for repairs and/or their costs.
The appraiser works for the mortgage lender. Their job is to calculate the value of the property in the current real estate market. The lender wants to be sure that the value of the property thoroughly covers the amount of the mortgage loan and that there is a cushion in case the buyer defaults on the mortgage.
Neither the agents, attorneys, loan originator or anyone else other than the lending institution several layers removed select the appraiser.
Usually, both the buyer and seller hire an attorney to protect their interests. Their main focus is the contract language; it must reflect the interests of both parties properly and put into legally enforceable terms the agreed-to conditions of the transaction.
There are other players in this process, but these are the main players. The good news for both buyers and sellers is that everyone involved has the same goal, a successful closing.
You can reach George at (914) 760-6858
About George Campolo:
George Campolo uses his knowledge and experience in the real estate world to help broker the best deal for his clients. Whether it’s buying new homes, selling old ones, or anything in between, he has the delicate touch to guide consumers in a confusing market. Client satisfaction and a strong work ethic have earned Mr. Campolo the 2015 RE/MAX Rising Star award, and the RE/MAX Executive Club award in 2016 and 2017.
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