Parties and Responsibilities Involved in Real Estate Transaction in Arizona
Buying and selling a home in Phoenix may be the biggest business transaction in your life. Ever wonder how many people are involved in the buying and selling of a residential property? The typical sale of a home today involves more than 20 steps and different people with different skills and expertise working together towards making sure that the buying and selling transaction goes smoothly. Read some of the key parties involved in real estate transaction in Arizona.
You might be interested: Flow Chart of Real Estate Transaction in Phoenix Arizona
REALTOR®
A REALTOR is a licensed real estate agent and a member of the National Association of REALTORS. They also belong to their state and local Association of REALTORS.
Realtor Fiduciary Responsibility
Real Estate Agent
A real estate agent is licensed by the state to represent parties in the transfer of property. Every REALTOR is a real estate agent, but not every real estate agent has the professional designation of a REALTOR.
Listing Agent
A listing agent or broker forms a legal relationship with the homeowner to sell the property. Listing agent represents home seller. Listing agent has legal obligation to work on the seller’s behalf—to get the highest possible price and the best terms available for the seller, not the buyer.
Buyer’s Agent
Buyer’s Agent also known as Selling Agent represents Buyer when they purchase a home. A buyer’s agent works with the buyer to locate a suitable property and negotiate a successful home purchase. Buyer agents work to negotiate the best possible price and terms for the buyer client. Buyer’s Agent also responsible to protect their client’s financial information.
What the difference buyer agent and listing agent in real estate transaction
Dual Agency
When a buyer is represented by the same brokerage that has the listing, it is called dual agency. When one agent represents both the buyer and the seller in same transaction, it is also called dual agency. REALTORS® have a responsibility to inform clients of potential conflicts of interest. REALTORS® cannot legally work both sides of a transaction without informed consent.
What you need to know about dual agency?
Loan Officer
A loan officer is a representative of a bank or other financial institution. They help client/buyer identify their borrowing options and help them understand the terms of their loan. Loan officer will be your contact person for mortgage question during the transaction.
Mortgage Underwriter
Mortgage underwriter’s job is to determine how risky it would be to give you a home loan. The underwriter will decide whether to approve, deny or suspend a decision on your loan.
Appraiser
An appraiser works on behalf of a lender and provides a market analysis of the subject property. Appraiser’s only job is to give an unbiased OPINION of value of the subject property. An appraisal protects both buyers and lenders to ensure that you do paid too much for the property.
What is an Appraisal when buying a house in Phoenix AZ?
Home Inspector
A home inspector objectively and independently provides a comprehensive analysis of a home’s major systems and components and overall condition of a home.
Why you should get an inspection when buying home in Phoenix Arizona?
Insurance Agent
An insurance agent helps a home buyer determine the homeowner’s protection coverage needed and then finds the right insurance policy to fit those needs.
Escrow/Closing Officer
An escrow or closing officer is a non-biased third party who works with all participants to facilitate a successful closing of a real estate transaction. At closing, the closing officer will collect the purchase money funds from the buyer and lender as well as the settlement costs from each party. They disburse the funds in accordance with the HUD-1 Settlement Statement and record the necessary documents to transfer ownership of the property.
What Escrow means when buying home in Phoenix Arizona?
Real Estate transaction have many moving parts and process. It takes cooperation and due diligence from all parties involved in the transaction to bring a successful closing.
Swee Ng, Realtor and Phoenix East Valley resident specializing in win-win real estate transaction through great communication and fighting for his clients’ best interest. After all, this is more than real estates, this is about your life and your dreams.
If you are looking to buy or sell your home in Phoenix AZ area, we hope you will consider us. Contact us today for complimentary consultation.
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