Agents, Appraisers And Inspectors
The housing market is riddled with more mysterious middlemen and semi-official kibitzers than a Casbah crap game. The main players are:The real estate agent works for the seller and is paid a percentage of the sales price. As a buyer, you should use the agent for information, but don't mistake the smile for unselfish interest in your welfare. The agent will steer you to houses on agency listings, and the higher the price the more the agent makes.
An appraiser works for a fee, for the bank, the buyer or the builder. The bank might hire an appraiser for assurance that the house is worth enough to cover the mortgage (adding the appraiser's fee to the borrower's bill). The buyer can hire an appraiser for assurance that the price is fair. The seller can hire an appraiser to help set the price. Or, everyone can trust self-judgement and forget the appraiser.
A surveyor works for a fee, for anybody who will pay. The bank or mortgage company often insist on a survey to verify that the property lines are where the seller claims. The buyer gets the bill.
You'll need a lawyer to check all documents before they are signed (including the offer to purchase). The buyer's lawyer also searches the title to see if there are any liens, rights-of-way, ownership disputes, or other claims that would complicate the transfer. Your lawyer also arranges the actual transfer of money and documentation on the closing date. The lawyer's fee is a percentage of the sales price and will be added to your final bill. Your lawyer is not responsible for protecting you from paying too much, only for arranging the payment.
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December 4, 2008