Your Experts: Building the Network
It's now time to assemble a "dream team" of real estate professionals to assist you
with your purchase - your expert network. Select these individuals based on their
respective expertise and services.
Since you're the one managing the process, you should find very qualified, reputable, and
affordable real estate professionals to make your network effective and not be too
costly.
You can start by checking our resource directory,
looking in the yellow pages, or asking family and friends for referrals.
Financial Advisor
Depending on your financial situation, you may want to consider adding a
financial advisor to your
network - this could be an accountant, tax preparer, or financial advisor. A good advisor can
help you assess your financial status and advise you on the best strategy - in particular, taxes
and financing options. When hiring a financial advisor, look for those that charge based
on a "Fee Only" basis. Working with those that charge a commission may create a conflict of interest
for you.
Mortgage Broker or Lender
Chances are you need a mortgage, so you should consider working with a
mortgage
broker or lender. So what's the difference? Essentially a broker doesn't lend you the
money, they find you the best deal, while a lender simply issues you a mortgage. Brokers
are middle men.
Hold on a minute. If I am not using a real estate agent because their middle men, why would I want to use
a mortgage broker? Well, that's a question only you can answer. The quickest and simple reason
is that a good broker can shop around and find the best terms and rates on a mortgage
for you. They can shop around with different lenders and do all of the leg work for you, while a
lender is limited to the terms and rates offered by their financial institution.
You may want to refer to the
mortgage center to learn more about
using a mortgage broker versus a lender. However, before you start looking at property, you
should already have met with a mortgage broker or lender. You should at least know who you'll be working with, and
at a minimum get pre-qualified. No seller will take you seriously without having secured
financing for the purchase.
Real Estate Attorney
Although not required, you will probably want to consider hiring a
real estate attorney.
Interview a few attorneys and make sure that they have in-depth experience with
real estate as well as assisting individuals, such as yourself, who prefer not to use
a real estate agent.
Think of the attorney as your guru. You need to make
sure you are comfortable with the attorney's ability and can get along with their personality.
Some of the things you may have your attorney do are:
- write and review contracts
- handle transaction money
- handle closing
- represent you in case of any legal problems
Inspectors
Without question, you will want to hire an
inspector to assess the condition of the property. In many states a home inspection is required by law. Regardless, this is something that you should do! This is your best line of defense. It's an honest opinion regarding what your doing with your hard earned dollars.
Not all inspectors are created equal - you should talk to a few and request a sample report. A good inspector should be able to
determine any damage, both structural and cosmetic that could affect the value and purchase of the property. The structural systems of the property such as the plumbing, electrical wiring,and skeletal framing should be meticulously examined, because these are the most critical and expensive to repair. You want an inspector who is going to take the time to make a good, honest assessment of the property.
Insurance Agent
It is always wise, and in most cases required, to insure the property. If you do not
already have an
insurance agent
that you deal with for a current property, you should start interviewing a few with different
insurance companies. As you will see, not all insurance agents are created equal, and
neither are all policies. So it would be wise to find an agent you're comfortable
dealing with, you know will be responsive in a time of need, and handles
insurance with a company that has the types of coverage you desire.
Appraiser
Typically, the institution loaning you the money will require an appraisal to be made
of the property - you will be paying for this at
closing. Once you have
determined your financing
situation, you may want to ask your broker or lender for a list of
qualified appraisers.
Find one that you feel will give you an honest appraisal. This will help ensure
that even after you have determined the fair market value, you are not going to overpay for
the property.
Escrow Officer
Although you are not required by law to use an
escrow officer,
you may want to seriously consider
hiring one. Their specific task is to be a neutral third party, who buyers and
sellers can entrust with safekeeping of documentation and money. The escrow officer
ensures that all conditions of the sale will be met before the seller receives any
proceeds from the sale and you receive the transfer of documents and keys. The sale's
not over until they say so.
Many times a seller will have already found an escrow
officer. In case they haven't, it would be wise to interview a few and know
who you wish to add to your network, so that if needed you have one ready to work with
you and the transaction.
Title Insurance Company
A title insurance company
is needed to verify titles and correct them if there is a problem.
They will check to make sure all titles are free of liens or charges prior to settlement. In some
states, title insurance companies will also serve as the escrow officer. A good
title insurance company can assist you in determining
comparables (typically, free of charge),
as well as answer other relevant questions you may have.
It may be likely that a seller will have already found a title insurance company. In case they
haven't, you would be wise to interview a few and know who you wish to add to your network, so that
if needed you have one ready to work with you and the transaction. At a minimum you may wish
to have one which you use to help answer questions that arise during your venture.
Relocation and Moving
If the property you are buying will be your primary residence, then chances are you will be
moving.
If you decide that you're not going to rent a U-Haul and move yourself,
you will want to hire a good moving agent that will help you move your treasured belongings.
Real Estate Agent
You won't be needing one, remember you're smart. You're doing-it-yourself! Just in case you
were thinking you may not need all these people if you had an agent, guess again. If you were
working with an agent, you would still need these professionals. The only difference is that
you are going to use your experts rather than have the agent recommend their buddies.
We're going to keep the real estate
agent on the bench for this game - good going!
Ok, now that you have your network, let's find some property -->
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