What is the difference between a real estate broker and a real estate agent?

California brokers are required to have a separate "Brokers" license, which equates to more education and experience than real estate salespersons or agents. Both of these licensees can also have the REALTOR designation. REALTORS hold a specific ethical standard.
The person you normally deal with can be a real estate broker, agent or salesperson. The salesperson is licensed by the state, but must work for a broker. All listings are placed in the broker's name, not the salespersons. A broker can deal directly with home buyers and sellers, or can have a staff of salespersons or agents working for him or her.

Why should I use a REALTOR?

REALTOR'S subscribe to a strict code of ethics and are expected to maintain a higher level of knowledge of the process of buying and selling real estate. A REALTOR acts on your behalf as your agent, providing you with advice and guidance for buying and/or selling a home. Your REALTOR will do their due diligence during the evaluation of the property. Depending on the area and property, this could include organizing inspections for termites, dry rot, asbestos, faulty structure, roof condition, septic tank and well tests, just to name a few. Your REALTOR can assist you in finding qualified, responsible professionals to do most of these investigations and make sure you are provided written reports. You will also want to see a preliminary report on the title of the property, which your REALTOR will also order and go over for you. Title indicates ownership of property and can be mired in confusing status of past owners or rights of access. The title to most properties will have some limitations; for example, easements (access rights) for utilities. Your REALTOR, Title Company, and/or attorney can help you resolve issues that might cause problems at a later date.

How much does a Realtor cost?

As a buyer, your REALTOR'S services are free. Why? The person selling the home pays for their agent (the listing agent) and the your agents (selling agent) commission.

How do I start the process?

Once we receive your call, we can choose a time to get together and carefully plan the purchase of your new home. As mortgage brokers we can also assist you with becoming pre-approved for a loan. This is an important step as it will determine how much home you can afford.

What is an earnest money deposit?

Earnest money is money that you will put towards the transaction in good faith, so the sellers know you are serious about taking their home off the market. Remember, if you are in escrow, that means that somebody else cannot be! As the transaction proceeds, this money can be put towards the closing costs for your loan, toward the home itself, or sometimes given back to you at the end of escrow. Usually, earnest money is 1-3% of the cost of the home, but it is always negotiable.

What is escrow? How long is it?

Escrow is a neutral 3rd party that holds all of the money during the transaction, and disperses the money at the end of the transaction. Escrow cannot do anything without the consent of both parties (the buyers & sellers.) Escrow is normally 30-60 days. The buyer and the seller share the cost of escrow, and it is considered part of your "closing costs."

How long is escrow involved?

The escrow period is a negotiable time period. The beginning of escrow starts when your offer is accepted. The end of escrow is when your loan "funds" and the money is dispersed appropriately to all parties involved. Your name is also recorded with the county as the owner of the property. Your title insurance company takes care of this. When escrow closes, the property is yours and you can move in.

What is Title Insurance?

Title to the property is similar to the pink slip on the car. Whoever has the pink slip on the car is the owner. Title is the same; whoever is on title is the owner of the property. Title insurance insures you against anybody who used to be on title. For instance, let's say you bought your home from John Doe. He sold the property to you as a single man, and title is now in your name. However, Jane Doe comes around a while later as John's sister/wife/x-wife. She says that she was on title, and she never signed the contract selling the home, therefore, she claims she is still on title. This is called clouding title. Title insurance protects you from this happening…it insures you from the point you purchase the policy BACKWARDS. There are different types of Title insurance (CLTA & ALTA). Be sure you know which kind you are purchasing. This is almost always a requirement of a lending institution loaning you the money for the home. You (the buyer) pay for this in your loan; it is part of your "closing costs."

What is a contingency period?

A contingency period is an amount of time that you are given to do your "due diligence" as a buyer. Because you are buying the property, you are give time to do some homework to see if the home meets your expectations. You can do any number of inspections, including, but not liminted to, a roof inspection, a pest inspection, a geological inspection, a mold inspection, or a home inspection. There are many more inspections you can choose to perform, but remember, you pay for all inspections! Generally, contingency periods are 17 days or less.

What is a home inspection?

This is generally the first inspection you will do. An inspector will come out and look at the home in great detail, and note for you all the things that should be fixed immediately or in the near future. He/She will also point out the things which appear to be fine. Based on this recommendation, you may choose to get other inspections. For instance, if the inspector says the roof looks really old and sees signs of a leak, they will recommend getting a roof inspector to come out for a more detailed inspection. Once the inspector points out the recommended repairs, we ask the seller to make some or all of the changes. The seller is under no obligation to fix anything except what is required by law. If they will not fix what you want, you can cancel the contract, and exit the deal with your entire earnest money deposit. If you want the home anyway, you may have to just take the home "as is." Your realtor will help you negotiate this part of the deal. The cost of this inspection depends on the size of the home. They start at around $250, and are paid by you (the buyer.)

Can I bring a personal check to escrow for my funds to close?

No, you must bring a cashier's check or a certified check for closing. This is to insure that the funds are truly there…it's equivalent to cash. You must also take this money to escrow about 5 business days before the close of escrow.