When you purchase or sell a home in Northern Virginia, it is important to understand the process. To facilitate this, I have created a purchaser’s flowchart and a seller’s flowchart which detail the process in an easy to follow visual way.
Besides the process, it is crucial to be familiar with the players on the scene – the team of professionals who are involved in your real estate transaction. There are numerous people that you will be introduced to during the course of your home purchase or sale, and others who you will never actually meet but who do very important work behind the scenes.
As a listing agent or a buyer’s agent, one of my most important roles is as the coordinator of the real estate transaction. I am tasked with coordinating the efforts of all the players (somewhat like a coach or orchestra conductor) to make sure that they perform up to snuff, resulting in a smooth deal and successful closing.
Let’s meet the players involved in a Northern Virginia real estate deal:
THE STARTING LINEUP:
- Listing Agent – The listing agent is the Realtor who puts the home on the market. This agent represents the Seller and according to the Northern Virginia Association of Realtors listing agreement has the duty to seek a buyer at a price and terms agreeable to the Seller. The listing agent will market and advertise the home for sale, help with negotiations, and coordinate the transaction.
- Buyer’s Agent – Virginia recognizes buyer’s agency where a Virginia Realtor represents solely the interests of the purchaser of a home. This Realtor will consult with a buyer about their needs and budget and help them find the right home in the right neighborhood. The buyer’s agent will typically recommend preferred lenders, inspectors, and other professionals to assist the buyer in having those services performed. Using a buyer’s agent does not typically cost any money to the buyer out of pocket, since commissions and fees will be paid by the seller of the property.
- Mortgage Lender – Mortgage lenders assist purchaser’s with financing their home purchase. Very few people can afford to buy a home in an all-cash transaction. It is important to have a good lender who is upfront about all the fees involved in the deal. All mortgage lenders are required to give their clients a good faith estimate or GFE after a purchaser submits a mortgage application. Lenders will run the buyers’ credit reports, look at income tax returns, employment history, and determine the suitable price range and the amount of loan for which the purchaser will qualify.
Home Inspector – I recommend that everyone buying a home in Virginia get a professional home inspection. (Virginia is a caveat emptor state.) Depending on market conditions, for some sellers, I recommend having a home inspection before putting the home on the market. This way they can repair any issues that arise early on and avoid later hassles. A professional home inspector will thoroughly inspect the systems, appliances, and maintenance issues in the home and provide a written report of any problems or deficiencies. Even if no problems are found, the home inspector will point out things that the buyer should be aware of that may need updating or replacing in the near future (for example, a water heater that is near the end of its useful life).
- Settlement Company or Settlement Attorney – these are the people responsible for conducting the closing. They will prepare all of the paperwork that both parties will sign at settlement, including the deed, HUD-1 settlement statement, and mortgage deed of trust. (See What to Expect at the Closing Table in Northern Virginia) Additionally, the settlement company is responsible for making sure that all monetary disbursements are made in a timely fashion to the proper people. Be nice to the settlement agents – they are the ones who control the money.
ON THE BENCH:
- Appraiser – unless buying for cash, almost every transaction will involve an appraiser. The licensed appraiser is responsible for giving an opinion of value of the home. This opinion will be used by the lender or bank to determine how much money they will loan in the mortgage. Appraisers use recent comparable home sales to determine an appraised value. Most buyers and sellers will never meet with or interact with the appraiser much in the course of a transaction, but the appraisers play an important role.
- Termite Inspection – almost every home, except for condos, requires a termite inspection. The termite inspectors look for evidence of termites and/or termite damage as well as evidence of other wood destroying insects such as carpenter bees. This is usually a pretty quick inspection and neither party needs to be present. If a problem is found, the default language in the Virginia residential sales contract provides that the sellers are responsible for remedying any issues.
Surveyor – A surveyor will create a survey or plat of the property showing the boundary lines and where the house sits on the property. A survey will also contain information on any easements on the property, including power, telephone, and sewage easements. While you will probably never meet the surveyor, it is important to examine the survey to make sure that there are no encroachments (items on your property that are over the boundary line of your neighbor’s property, or vice-versa). By the way, the first President of the United States, George Washington is probably the most famous Virginia land surveyor.
SOME OTHER PLAYERS:
- Home Stager – when selling a home, it is important to present it in the best light, clean and organized. There’s nobody better to help than a professional home stager. A stager can help make your home shine like a builder’s model home, often times by using the furniture and accessories that you already own, without buying anything new. Home stagers can work wonders in vacant homes making them sparkle. Professionally staged homes sell faster and for more money.
- Virtual Tour Photographer – when marketing a home, good photographs are a must. The more photographs available online and offline in marketing materials the better. Some agents (myself included) will hire a professional photographer to photograph the home for both still shots and moving virtual tours that can be posted on various internet sites.
- Moving Company – one of the final players in the home purchase. It is important to select a reliable, licensed, bonded moving company to handle the transportation of your important items and heavy furniture from your old home to your new home.
Selecting a good agent to coordinate the team of players will ensure that your home purchase or sale plays out smoothly.
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