Can you give me a basic overview of who's who in a real estate transaction?
Absolutely!
Appraisers
A professional who estimates the value of a home to be purchased. In the purchase of a home, the appraiser is usually hired by the mortgage lender to determine whether the price paid is in line with fair market value and therefore justifies the mortgage amount.
Buyer's Representative
A buyer's representative is an agent that has a contractual relationship with a buyer to help the buyer purchase a home.
Home Inspector
Most purchase contracts allow a buyer to have a home inspected within five days of signing the purchase contract. A home inspector performs an inspection of the home to be purchased on behalf of the buyers in the transaction. The inspector examines the home for structural soundness and identifies recommended repairs in his or her report.
Mortgage Broker
An independent contractor who helps bring borrowers and lenders together by originating residential and/or commercial loans offered by multiple wholesale lenders.
Mortgage Lender
A mortgage loan company that originates, services, and sells loans to investors or purchasers.
REALTOR®
A specific designation given to members of real estate firms affiliated with the National Association of Realtors (NAR) who are trained and licensed to assist clients in buying and selling real estate.
Title Companies
Once the purchase contract on a property is completed, terms are agreed upon, and financing arrangements have been made, the lender orders a title search of the property to be purchased. Depending on the region, a title company or practicing attorney can conduct this search. A title search is the examination of public records to determine that the person selling the property has the right to sell it and the buyer is getting all the rights to the property. The title search seeks to uncover any liens or other problems with the title. The title company then works to fix any problems with the title before issuing lender's title insurance, or the loan policy. The loan policy protects the lender's interests in the property. Buyers also may obtain an owner's policy to protect their interests.
I've heard it said that a REALTOR® only represents the seller. Is this true?
The best answer to this question is: it depends. REALTORS® represent sellers and buyers, but it really depends on who the agent is under contract with. If a buyer has a contract with a REALTOR®, (the contract is usually referred to as a Buyer's Representation Agreement), then the REALTOR® represents the buyer. If no such contract exists, then the default is that the agent represents the seller.
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