I recently ran across an editorial in the local Boulder paper discussing real estate sales as an economic booster. The writer pointed out that during her process of buying a home, she contributed to the economy by employing a real estate broker to help her with the purchase and a contractor to do a few fix ups after she moved in. By buying a home, she helped the real estate broker and the contractor make a little money.
As I thought about the economic impact of selling just one home, I can see much more impact on many more people. The home buying process starts with a homeowner putting their home on the market — usually after doing some sprucing up of the home and perhaps some decluttering. So the local hardware store might have sold a few items, a handyman might have picked up a little work, and maybe a storage facility or local mover might have picked up a new client. A local real estate broker gets a new listing that might turn into a commission.
Once the buyer finds the home with their real estate broker (usually a different broker), they hire an inspector and start working on getting their loan. The inspector earns a fee for inspecting the home. The lender generally has at least three people working on a new loan — the loan officer, the loan processor and the underwriter. The title company that will close the transaction has researchers that check on the title and any outstanding liens and a escrow officer or closer that will prepare the paperwork.
Chances are that the inspection will find some items that need repair. Repair people will most likely be hired to fix the problems — a handyman, a plumber, an electrician, an HVAC contractor, etc.
When the transaction closes, the real estate brokers earn a commission, the title company earns its money for the title insurance and closing the transaction, the lender collects its fees so it can pay its employees. An insurance agent issues a new homeowners policy to the buyer.
Now its time for the movers or renting a truck….
As the new home owner settles in, they make a few changes and buy some new items.
Now the seller needs a new home and it starts over again…..
Ready to help move the economy along by buying or selling a property? Call me at 303-402-6000, email me at karenb@bernardrealestate.com or visit my website: www.bernardirealestate.com
