According to Mike Patton a contributor at Forbes, a typical real estate transaction have three key players: the realtor, the lender and the title company. Each of the three has different roles and if they perform well in their obligations, the transaction should be fairly routine.
First the Realtor normally represents the seller but the buyer can also seek assistance from the realtor. Typically the seller pays the realtor between 4-6% but this percentage, being set by the Realtor or their company, is open to negotiation. In a situation where both the realtor assists both the buyer and seller there could be a potential conflict of interest. This normally arises because the Realtor has access to confidential information that he may not disclose to both parties and thus the Realtor could have vested interest in getting the deal done. Having said this, when buying or selling a home one must hire an experienced ETHICAL realtor.
The next key player, the lender, is needed often times because the buyer usually borrows money to purchase home. The lender will assign a loan officer to assist the buyer. It is the responsibility of the loan officer to manage the loan process from start to finish including obtaining a credit report on the buyer, order and appraisal, submit the title search to assure the property has no pending claims and etc. If the loan officer efficiently performs his task then there will be no delays in closing the deal.
Lastly, the Title Company takes care of the legal issues in the transaction that is why it is also considered a key player in the transaction. They make sure that the title to that piece of real estate is Legitimate. They also process all the required paper works and protects parties from any conflict that may arise from claims against a certain property.
It is important to choose these key players wisely to avoid bad experience with either selling or buying a home. Aside from getting ethical key players to work together, effective communication among all the parties involved can help achieve a smoother real estate transaction.
