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Home Purchase Loans
AAB – What you might need to get your deal done – Agents, Attorneys and Brokers
If you have a great, unique home in a wonderful location, then a For Sale By Owner might be the way to go. However, most sellers use a real estate agency to market their home. Most buyers contact a real estate agency when they are looking to buy a home because the broker has access to huge databases of homes for sale.
Brokers and Agents are defined as:
- A broker is licensed to operate a real estate company and collect a fee for arranging a sale
- An agent is licensed and works for a broker
Brokers and Agents have an important job and that is to get the best possible price for their client’s property – they are not just doing this for fun however, they make a nice commission that usually around 6% of the home price and split 3%/3% between selling broker and listing broker. There are plenty of conflicts with this relationship and it that reason why some home shoppers choose to find their house through a real estate agent that only represents the interests of the buyer – they are called a buyers agent.
Attorneys
- Most home purchase deals can be done without an attorney
But, on the plus side:
- There is a lot of paperwork involved and sometimes the language is difficult and specialized, so you do not want to unknowingly agree to conditions in your favor.
Back on the down side:
There is a fee for the attorney’s service, but it is generally modest in comparison to the money you’re spending on the property.
