Players On the Buyer's Team

It doesn’t take a whole village but it does take team effort to buy a home. There’s a lot at stake here. For most people a home represents the biggest asset they own.

Most of us aren’t experts on all of the factors involved in buying property like comparable home prices , mortgage rates, escrows , title insurance , real estate law, taxes, and construction. Luckily we don’t have to be. We just have to hire the right people. Or know the right people to tell us whom to use. It sounds complicated but once a few of the players are set in motion, what seems mind-boggling at the beginning starts to make sense.

Everyone you need to know:

• Real estate agent: After painstaking research you decided to use an agent and now have the best agent in town working for you. The agent knows the inventory and comparables and can find the perfect home for you at the best price.Skillful negotiation of the deal is part of the agent’s job. (See Choosing a Good Agent.)

• Real estate broker: If your agent works for a broker , the supervising broker may provide crucial back-up support if the deal goes sour. A broker has more education and generally more experience than an agent and can end up saving the deal if problems prove too much for the agent. The agent may also be a broker, but chooses to work under a managing broker.

• Mortgage broker: A good mortgage broker knows about financing and lenders and can help you determine the best type of mortgage and rate for you out of all of the confusing loan options. The mortgage broker either receives payment by the lender or by you, depending upon the type of loan. Ask for all closing costs upfront and be sure the mortgage broker comes highly recommended.

• Lender: Simply put, the lender lends you money to buy your home. The lender should be able to offer competitively priced loans with terms right for you. When not using the services of a mortgage broker, always check several lenders before choosing one to be sure you are getting the best possible deal.

• Inspector: Don’t try to save a few hundred dollars by taking the advice of well-meaning friends or relatives no matter what they think they know about construction. Hire a professional property inspector to inspect your new home before finalizing the deal. Overlooked problems can be a nightmare later and cost thousands in repairs. Attend the inspection and ask questions. Issues not apparent before the inspection may be cause for further price negotiation. The final report not only gives you a reality check on the condition of the building but is a useful tool for future maintenance of your new home.

• Escrow officer: The escrow officer handles the paperwork and funds for the transaction and has allegiance to neither party.

Financial and tax advisors: Depending on the complexity of your financial situation, a financial or tax advisor can determine how a home purchase fits into your goals and how much is prudent to spend on a home.

Real estate attorney: Rule number one: If you need an attorney for the deal, don’t use an attorney who does not specialize in real estate. It can create problems you don’t need at this point. The need for attorney representation varies from state to state. When not using an attorney, remember the purchase agreement or contract you sign is legally binding.

Related links: What a Buyer's Real Estate Agent Does; Working With Your Buyer's Agent; Home Buyer's Game Plan