Service
Providers When Buying a Home
You and the Seller
Must Agree
Buying a home does not occur in a vacuum,
involving only you and the seller. There are all kinds of
people and services involved behind the scenes to make it
happen. Since some of these services affect both you and the
seller, there will have to be be agreement on which companies
you will use for them. When you make your offer, you should
request your favorites for these services. If you are unfamiliar
with these service providers, you can get recommendations
from your agent.
Escrow and Settlement
For example, you are going to need
an escrow or settlement company to act as an "independent
third party" between you and the seller. Without having
a third party involved, how do you know that when you fork
over the money, you are going to get the deed? This is the
type of service provided by escrow and settlement. They will
hold your deposit and coordinate much of the activity that
goes on during the escrow period.
Since this third party is very important to both you and the
seller and both of you will pay fees to this company, it is
important to agree on which service to use. Therefore, your
choice should be part of the offer. Since you do not buy a
home every other week or so, you are probably unfamiliar with
companies that provide this service. Your agent will make
a recommendation. You have the authority to accept this recommendation
and include it in your offer, or make your own choice.
Keep in mind that the seller will also have a preference
and this may be a point of negotiation in a counter-offer.
It has become customary that one side will choose the escrow/settlement
agent and one side chooses the title insurance company. Even
so, everything in real estate is negotiable.
Title Insurance Company
Title insurance is important because, by providing you with
an Owners Policy, they insure that you have clear title
to the property. If there are any problems later, you can
always go back to the title insurance company and have
them clear it up. Since it is customary for the seller
to pay for the owner’s policy, they have an interest
in which company is used.
However, you are going to pay a fee to the title insurance
company, too. This is for the Lender’s Policy. The lender’s
policy insures your mortgage lender that there are no liens
or judgments against the property and that the mortgage will
be in first position. In other words, should you sell the
property or refinance it, their mortgage gets paid first,
before any other claims against the property.
The lender’s policy is less expensive than the owner’s
policy.
Termite and Pest Inspection
As part of your offer, you may require a termite and pest
inspection. This company not only inspects for termite damage
and pest infestations, but also inspects for dry rot and water
damage, among other things. The company that performs the
inspection is important to you as a buyer, because you want
to be sure they do a good job. It is important to the seller
because it is customary that they pay for the inspection and
some types of repairs that may be required.
You should determine which company you want to perform this
inspection and make it a part of your offer. Otherwise the
seller will choose. If you do not know which company to hire,
your agent will make a recommendation.
Tips brought to you by
Real Estate ABC's.
About Blaine Morris, Marin Properties
As a top-producing licensed REALTOR with
Frank Howard Allen in Greenbrae, California, Blaine Morris
specializes in Central and Southern Marin County. Always just
a phone call or email away, Blaine works seven days a week
for his clients, providing them with the utmost in fast and
efficient service and follow through. Whether you are searching
for the home of your dreams, or thinking of selling it, Blaine
can turn your dreams into reality! Behind Blaine is the strength
and stability of the Central Marin office of Frank Howard
Allen, the #1 office of the #1 Brokerage in Marin County.
Contact him today at 415.925.3279 or
click here.
Back to Tips
Back to Top
Home
|
