10 Key Players In The Real Estate Market

The process of buying or selling real estate is common knowledge to some and a mystery to others. Whether you’re buying a home, selling an office building, or considering any other real estate transaction, understanding some of the key players in the real estate market is essential.

Here, we’ll look at some key players in the real estate market and what they do. That way, when you are ready to undertake a real estate transaction, you’ll be in the know.

1. Loan Officer

A loan officer works at a bank, credit union, mortgage company, or other lending institution. They are required to be licensed for the work they do, which entails evaluating and recommending loan approval for people or companies looking to borrow money.

Loan officers meet with loan applicants to gather all the necessary financial information they need to preapprove them for a loan. This includes gathering and verifying income information, credit scores and other financial documents from potential borrowers.

2. Underwriter

An underwriter works in tandem with a loan officer to take a loan from preapproval to final approval. Once the loan officer has verified the information from the borrower, they send the application to an underwriter who determines if the financial institution will approve the loan.

Sometimes most of the underwriting isn’t done by a person, but by software. Many lenders use underwriting software to determine if a loan should be approved and have humans examine the information for the final say.

3. Buyer’s Agent

A buyer’s agent is a critical part of your team if you’re trying to purchase any type of real estate. They work to find you possible properties, evaluate their worth and submit an offer if you are interested in purchasing.

A good buyer’s agent will know the local market and be able to find you the best available real estate that meets your specific needs. The best part is you don't pay them a dime! Most buyer agent commissions are covered by the seller.

It is possible to buy a house without a REALTOR®, but they are incredibly valuable to work with. Finding the right home or investment property takes expertise and connections, so lean on the professionals.

4. Listing Agent

A listing agent helps real estate owners sell their property. This includes preparing the property for sale, holding open houses and private showings, listing the property online and negotiating with prospective buyers and buyer’s agents.

A good listing agent will also provide a host of other marketing for the property including online ads, email marketing and good old picking up the phone and dialing. Experienced and connected listing agents can even find you off market buyers, eliminating the need for preparing your property for multiple showings and open houses.

Listing agents charge a commission for their services, usually around 4% – 10% of the purchase price. That commission is usually paid by the seller and is split with the buyer’s agent.

5. Homeowners Insurance Agent

Unfortunately, owning a home means you need to be ready for unexpected problems. Luckily, homeowners insurance has you covered (for some things). A homeowners insurance agent helps you evaluate options and purchase a plan that’s right for you and your property.

Insurance plans cover various elements of your real estate depending on which plan you choose. The more you pay, the more will be covered. Your lender will almost always require you to get homeowners insurance to protect their investment (the loan for your home).

Typically, this is paid through an escrow account so you can roll it into your mortgage for one, convenient monthly payment.

6. Home Inspector

A home inspector is another one of the key players in the real estate market. They help you ensure the home you are purchasing is safe and ready for you to move into. Once you have an offer accepted, there is usually an inspection period (typically in 5 – 10 days) where you can hire a professional home inspector to look at the home.

A good home inspector will review every nook and cranny in the home to determine if there are any physical defects present. Once they give you a complete report, you can go back to the seller and ask for items to be fixed or for some cash to cover the cost of repairs. Or, you can walk away from the deal completely.

7. Home Appraiser

Your lender needs to make sure the house you are buying is worth the amount they are loaning you. To do this, they hire a home appraiser to determine the value of the property. This requires a physical tour of the house as well as some research on recent sales in the area.

Once the home appraiser determines the value of the house they submit it to your lender who shares that information with you. If the value is the same or more as the contract price, the deal moves forward. If the home appraises for less than the contract price, some negotiation occurs.

The seller may agree to reduce the sale price to the appraised amount, but sometimes they won't. If that happens, the buyer needs to come up with extra cash to cover the difference between the appraised value and the contract price.

8. Title Company

A title company becomes noticeable at the closing table. They ensure all the paperwork is ready and everyone knows what they need to sign. They oversee the singing, make sure the necessary funds are transferred, and seal the deal.

However, title companies do a considerable amount of work before the closing as well. They research the title of the property to make sure there are no liens against it or anything else that might muck up the sale.

9. Notary Signing Agent

A notary signing agent, often employed by the title company, oversees the signing of important documents. They are licensed and trained to help people understand the documents they need to sign as well as serving as a witness to the signing.

10. Mortgage Servicer

A mortgage servicer answers any questions you have about your loan, processes your monthly payments, and records your principal and interest paid. They also manage your escrow account for homeowners insurance and taxes. Note that your lender and your mortgage servicer can be two different companies.

The Bottom Line

As you can see, there are several key players that help you buy or sell property. Lean on these professionals and always ask questions if you don’t understand something to ensure you have a smooth home buying and selling process.

Ready to learn more? Here’s some more information about the home buying process.