subject: 8 players you need on your real estate team [print this page] 8 players you need on your real estate team
Making the best decisions when purchasing your first home requires having access to the right information. In addition, you really need a good deal of experience in the real estate market, experience which you are lacking by definition if you are a first time home buyer. How can you overcome your lack of experience? A simple way to avoid serious mistakes is to assemble a competent real estate team of advisers.
Here are eight advisers you should consider having on your real estate team:
Real estate agent
Your home is obviously a huge investment, perhaps the largest investment you will ever make in your lifetime. You need to have access to someone who understands the value of properties in your area. In addition, real estate agents will be able to help negotiate with the seller after helping you choose among homes in a given neighborhood.
Real estate broker
You may be confused about the difference between a real estate agent and a broker. Though many people do not realize it, there are two main types of licenses covered under each state's real estate laws. A broker has to go through more a rigorous training and certification program in order to work independently. An agent who only has the certification of a salesman, on the other hand, must be working under the management of the broker. You may not usually meet your broker unless your transactions hit a bump in the road and you need his or her expertise to solve your problems.
Mortgage lender
Obviously, most home buyers do not have enough cash to pay for a property at once. For most people to realize the dream of homeownership, a mortgage lender must come into play. The key is to understand the difference between the various loans out there (including the differences between fixed loans and adjustable-rate mortgages), as well as understanding how small changes in interest rates can translate into significant savings (or higher costs) in the long run.
Property Inspector
You are simply asking for trouble if you don't go through the trouble (sorry for the repetition) of a proper home inspection. You need a competent and reputable professional to examine everything from the roof to your home's foundation. Otherwise, you may end up paying much more than your home is worth once you consider the necessary repairs.
Escrow officer
The escrow company serves as a referee between the buyer and seller. You must have a little bit of distrust when making such a large transaction. Just imagine that you pay your seller thousands (or tens of thousands) of dollars directly instead of using an escrow officer. How do you get that money back if you are not satisfied with transaction? Trying to save a little bit of money by avoiding the escrow officer can cost you much bigger headaches in the end.
Financial advisers
The first step to purchasing a home should be to evaluate your own financial circumstances so you can understand exactly what kind of home, if any, you can afford to buy. Although ultimately you must make a decision yourself, financial advisors can help you understand tax implications and other issues surrounding the purchase.
Real estate lawyer
This is one advisor that is not necessary in many cases, though it is more common to use a lawyer in certain parts of the country. Keep this option in mind if you have any doubts about the legality or ramifications of your real estate contract.
Who is the eighth advisor on your team? Why, it's you of course. No, you may not technically be a professional consultant, but that's not the point here. Ultimately, you're responsible for the final decisions on every aspect of your home purchase. No one can tell you how much you can afford or which home is right for you. You must understand your own needs and financial circumstances before moving forward.
