Home Buyers, get an expert negotiators on your side

 Realtor fees — also known as commission — are part of almost every real estate transaction. However, buyers don't typically pay them. Instead, realtor fees are usually wrapped up in the seller's closing costs.

A buyer's representing agent is compensated at the close of escrow. The realtor fee is typically paid by the seller to the listing broker who, in turn, shares part of it with the agent who brings a buyer to the table. They receive a commission represented as a percentage of the sale as specified in the purchase contract. It’s pretty standard for the commission of the buyer's agent to be paid by the seller. As a result, it’s also pretty standard for there to be no cost associated with working with an agent/realtor for the buyer.

The process, in which a disinterested third person (a stakeholder) holds money and/or documents until the satisfaction of the terms and conditions of the escrow instructions (as prepared by the parties to the escrow) has been achieved. Once these terms have been satisfied, delivery and transfer of the escrowed funds and documents take place. (Escrow should not be confused with closings.) A valid escrow is set up when a binding and enforceable contract of sale has been deposited with the escrow holder along with a fully executed deed. The escrow holder acts as a fiduciary and retains documents and entrusted assets until specified conditions are fulfilled. The holder is the special and impartial agent for both parties and acts according to the escrow instructions given by both. Depositors have no control over the documents after they are deposited into escrow, so the death or incapacity of one of the parties to the escrow does not terminate the escrow. Upon performance of the descendant's part of the contract, the other party is entitled to have escrow concluded according to the terms of the contract.
In closing a real estate transaction, the escrow company may perform such duties as paying liens, computing prorations, ordering title evidence, having new documents prepared, drawing up closing statements, obtaining necessary signatures, recording documents, and receiving and distributing funds. For tips & mistakes to avoid during escrow download this document from dre.ca.gov.

 The length or term of an escrow is largely determined by the mutual agreement of the parties to the escrow. The number of days it will take to complete the escrow and/or the target closing date is indicated in the purchase contract and escrow instructions. Sometimes, the closing of an escrow can be delayed by the time it takes to approve and underwrite the loan if a lender is involved and new financing is being obtained by a buyer or borrower. Also, an escrow may not close on time as a result of unexpected circumstances, documents that have not been signed, or disputes between the parties. For tips & mistakes to avoid during escrow download this document from dre.ca.gov.

 In California, you can. Yes, it may help you get your offer accepted but is the agent representing your interests, the sellers, or their own? Inadvertently, it's possible you and your interests may not be protected as well as they could be and it's hard to believe that the best possible deal was negotiated in your favor.