Buying a new house can be stressful as it is one of the biggest commitments you will be making in your life. The unnecessary complications added to the home buying process only add to the stress levels.

Over the years, brokers working in the property market have convinced sellers and homebuyers that their expertise is needed for all the entities to get a fair share. Moreover, the government has implemented additional regulations that are meant to protect consumers; but they end up seeming complicated due to the difficulty in interpreting them. This has made the home buying process incredibly complex and costly.

A Breakdown of the Complexities of Buying A House

The RESPA law was passed by the Congress in 1974. This law stopped the regular kickbacks and price gouging between service providers and agents that were important to buy a house. However, this law also made the homebuying procedure complicated for consumers.

Owing to the RESPA law, there are several entities involved in the homebuying process. There is an escrow service that holds onto the deposits till the contract is settled. Next, there is a title insurer who has the job of evaluating the property in consideration for any boundary issues or liens. In addition to this, there is a mortgage provider who lends money that most consumers require to purchase a property. Apart from this, the insurance provider covers the insurance necessary to secure the mortgage and the property if any catastrophe occurred. Lastly, a home warranty provider has the job of offering a limited warranty on big items in the house such as the roof or water heater. Due to the RESPA regulations, all these entities have to be paid a separate fee which cannot be bundled together. To top off the complications, real estate agents are always seen overcharging consumers separately for their services.

Understanding the Cost of Commission

Sellers pay about 6% of the transaction value to their own broker and the buyer broker for their services. But since most buyers find properties through Google, or Zillow nowadays, the only job that a buyer’s agent typically performs is opening the house for viewing. Despite such limited work, the buyer’s agent still enjoys half the commission that is paid to the seller. In terms of the property value, this amount is a substantial financial cost. Buyers usually think that the seller is paying this amount. However, it is crucial to understand that this amount is often built into the property’s listing price.

Hiring a Good Mortgage Professional

As there are several complications surrounding the home buying process, it is best to seek help from a good mortgage professional who can help you navigate the process while making it less complicated and less costly. A good mortgage expert, like the ones at Rex Real Estate will eliminate the necessity to overinflate list prices and assist you in securing mortgage and insurance at competitive prices. Besides, a seasoned expert will handle several tasks related to title, warranty and escrow so that you can easily fulfill your home buying dreams.