How big is the real estate industry? Well,
the last report I read said that the total value of all of the homes in the
United States has currently exceeded $33 Trillion. That is a huge number! You
can imagine with all of the homes that were bought and sold throughout the
country, there are a lot of people, vendors, trades and industries that are
Who participates in a typical real estate transaction?
The obvious thing is you have a buyer for every seller and every buyer, unless
he or she is paying cash, is getting a real estate mortgage loan. Now, we’ve
added a lender to the mix.
Then one of the other obvious things that
we need are agents for each buyer and each seller. We have buyer-seller,
buyer-agent, listing agent lender and then we need someone to close the
transaction so that’s the title company. But let’s back up a little bit. Before
a listing comes to the market, a seller typically does a lot to prepare the
transaction to prepare the house for the market.
That may include carpet folks, painters,
new appliances, movers. All these different people, plumbers, electricians. You
may need to change your lights; you may need to do more mulch outside so that’s
a landscaper. You might need to move a tree or fix a fence, so you start to
understand that there are lots of different people involved in preparing the
house for sale.
You may also need a stager and a cleaner to
polish up the house before it goes to market. After the house is in the market
and the buyers come along with their agents and they write an offer in the
house, then we may see various home inspection companies coming into the house.
You might have someone come in to do the structural and mechanical. Another
company for Radon, someone to look for termites. You may have roof inspections,
mold inspections, chimney inspections - All different vendors.
Sometimes a home inspection company can do
a basic check on all these things but if they see anything that isn’t quite
right, then you have to call on the set of experts. You get through the home
inspection and then the lender says, “Okay, we need to survey. We need to see
how does the house sit in the land and we want to make sure that there aren’t
any boundary problems, so you have a surveyor that comes through.
Then an appraiser comes through to make
sure that the value of the house is still solid. Then once you go to closing, you may decide you
need a different color countertop or your cabinets need to be replaced or you
need new flooring and new paint and you’re going to customize that house to
your own desires.
You may need to change the locks and so
you’re running to Lowe’s back and forth to get all the things that you need to
prepare the house to your taste. You start to see if you really make a list and
I did one right before I made this video and I came up with 20 different vendors
that are typically involved in every real estate transaction.
If we’re looking at a $33 Trillion value for the market, you can imagine that
this really feeds the economy in a lot of different ways. There you have it,
lots of folks are involved in the real estate transaction. If you have
questions about any of that, please feel free to reach out to me at the
information provided on this video. My name is Michelle Camaioni with RE/MAX
Closers and I hope you have an excellent day!