The Buyer's Dozen
This infographic lists the people involved in the average homebuying journey - and if you're counting, there's at leasta dozen of themhandling various aspects of the experience.
Buyer's Agent (works for buyer)
The Buyer's Agent helps manage and oversee the buying process from start to finish, including helping the buyer identify the right property for the life they are trying to build, negotiating the best price on their behalf given market conditions, and in some states drafts the Purchase Offer and its provisions.
Who Hires/Chooses Them? The Buyer.
Seller's Agent (works for seller)
The Seller's Agent lists and markets the seller's property and negotiates the best price and Purchase Offer provisions on their behalf given market conditions.
Who Hires/Chooses Them? The Seller.
Inspector (condition and safety of home)
The Inspector examines the house in person and prepares a report detailing the general condition and safety of the house and its systems
Who Hires/Chooses Them? The Buyer.
Contractor (Assess and bid on any repairs needed)
A contractor might be required if the home is in need of any repairs or if the buyer would like to consult on any desired future improvements to the home. Could be: painter, plumber, electrician, carpenter, roofer
Who Hires/Chooses Them? The Buyer.
Home Insurance agent (packages policy)
The Home Insurance Agent helps buyers identify and shop for the best home insurance policy for their new property.
Who Hires/Chooses Them? The Buyer.
Movers (moves your stuff)
The moving company will pack up the buyer's belongings and arrange to have them moved to a new location. They will move the boxes into the house and may, for an extra fee, unpack them as well.
Who Hires Them? The Buyer.
Mortgage
Loan Officer (originates or œsells the loan)
The Loan Officer helps manage the financial strategy of the purchase, working with the buyer to determine what they can responsibly afford, helping them get pre-approved for a mortgage, identifying the right type of loan and determining the most strategic moment to lock in the interest rate.
Who Hires/Chooses Them? The Buyer.
Appraiser (indicates value, and is a 3rd party to the lender)
The Appraiser determines the fair market value for the house (as a way to ensure the bank has sufficient collateral for the loan).
Who Hires/Chooses Them? The Appraiser is a third party hired by the lending institution
Loan Processor (timely and accurate packaging of entire loan)
The Loan Processor verifies completeness of all documents collected by the Loan Officer and ensures timely and accurate packaging of the entire loan.
Who Hires/Chooses Them? The Loan Processor works for the same lending institution as the Loan Officer
Underwriter (makes lending decision based on entire loan package)
The Underwriter carefully reviews the financial background of the buyer and all of the paperwork associated with the transaction and makes the final decision on whether or not a bank should issue a loan.
Who Hires/Chooses Them? The Underwriter works for the same lending institution as the Loan Officer.
Title Officer (title research)
The Title Officer researches the house's history to ensure the home's title is clear and legally available to be sold. They will also alert the buyer to any deed or zoning restrictions that limit the way the property can be used, and help arrange for title insurance policies.
Who Hires/Chooses Them? The Buyer. Often a negotiable item.
Escrow Agent (3rd party, monies and documents between buyer, seller and lender)
The Escrow Agent acts as the impartial third party between the buyer and the seller and performs all necessary clerical duties involved in the closing process, like holding money and documents until the appropriate time to distribute them.
Who Hires/Chooses Them? The Buyer. Often a negotiable item.
(In some states, each transaction requires the involvement of an Attorney...this isn't the case in Colorado, which makes you Buyer's Agent selection that much more important!)
There's a small army of people involved in buying a home - many of whom the buyer never actually meets (or is more than dimly aware of).
And that's a problem. Why? Because every single one of them is responsible for things along the way that buyers should certainly understand - and can potentially influence to his/her own advantage.
Beyond their core responsibilities, manygreatagents or loan officers usually oversee and manage these key players, and thebestamong them also make sure their buyers know everyone's roles and responsibilities along the way.
If you have questions about why it takes so many people to facilitate a home purchase...let us know. We would love to walk you through the process, answer any concerns that you might have...or help you take the first steps to buying your first property!
Thanks to the super-smart kids over at Doorstepsfor breaking it down...if you are looking for a step-by-step guide to buying a home, Doorsteps is a great place to start!
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