REAL ESTATE ONE STOP SHOPPING - IS IT A GOOD IDEA?
AM I SAVING MONEY, TIME, AGGRAVATION?
WHY WOULD I ONE STOP SHOP FOR REAL ESTATE NEEDS?
Real estate companies are getting more and more involved these days in all aspects of a home purchase. Many of them offer not only a Realtor to help you with home buying or selling, but who will recommend several other services to you that their affiliates offer.
WHAT ARE SOME OF THE OTHER SERVICES OFFERED IN ONE STOP SHOPPING - AND DO I NEED THEM?
Besides finding a home (and in no particular order), you will need to have:
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HOME MORTGAGE FINANCING - If you are not paying cash you will need home mortgage financing.
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HOME INSPECTION - You may elect to get a home inspection or not. I highly recommend you not waive this right without careful consideration.
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HOME OWNER INSURANCE - You will need home owner's insurance coverage (otherwise known as hazard coverage).
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TITLE AND CLOSING SERVICES - If you obtain a home mortgage, you will need a title company or attorney to complete the closing for you.
WHAT DOES AFFILIATE MEAN?
An affiliate is someone who is owned or partially owned by the same principals. As an example a real estate company and a title company can be owned by the same group. That makes them affiliates. A good rule of thumb is if you walk into a real estate office and they are offering you services on sight you may expect they are affiliates. You should have to sign a disclosure acknowledging you were advised of the affiliation.
ARE YOU SAVING MONEY, TIME AND AGGRAVATION - THAT IS THE GREAT DEBATE!
You may save time and aggravation by not having to research sources for these services. The trade off is whether you will be saving money and whether the real estate in house source is the best for your needs.
Some pitfalls would be whether you are getting the best mortgage loan for your particular needs. Not every lender offers every program. For the home mortgage you absolutely want to shop around. Also, how much information to the affiliates share?
As to title services, you'll want to ask for advice as you shop lenders. Lenders not affiliated with a commonly owned title company usually will use title services that are convenient, competitive and oh so important these days - know the lender's paperwork. Getting the paperwork signed, explained and recorded correctly is imperative.
WHY DO REAL ESTATE OFFICES OFFER ONE STOP SHOPPING?
SIMPLE. Real estate offices offer one stop shopping for services because most home buyers and sellers need the services and it is an opportunity to make more money on the same transaction. While one stop shopping may have benefits, it is difficult for one company to be good at every service. So bottom line - shopping is encouraged!
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