Did you know that real estate makes a huge impact on the economy?
When a home is sold, it’s a paycheck for so many people involved in just one real estate transaction. And often, sellers who sell their home will naturally buy another one, starting the process all over again.
Because I’m in the mortgage business, the lending side is just one factor of a real estate transaction. Below is a list of the real estate agents, escrow companies, appraisers, couriers, underwriters, processors, administration and so much more. All of these parties contribute to a successful real estate transaction and while a lot of these funds can be pulled from the equity of a home, they still go to all these different individuals, creating jobs, feeding families, boosting the economy, and helping our housing market and our financial situation.
Below is a break down the list of people involved in a real estate transaction and to give you an estimated idea of how much money goes into each of these. It’s important to know where your money goes. I based these numbers on a 500,000 purchase price for a home in California.
- Home inspector $300-$500
- Termite inspector $150+ repairs as needed
- Appraiser $550
- Loan officer $5000
- Mortgage co staff $1500
- Home warranty company $500
- Moving company $500
- Insurance company $1200 annual
- Painter $1500+
- Handyman $500+
- Furniture store $2000+
- Appliance store $2000+
- Home improvement store $2000+
- Real estate commission $30,000
- Title company (buyer) $1100
- Title company (seller) $1500
- Escrow $1600
- Notary $250
You can see that not all these parties will be used in a single transaction, but they could be, depending on the need.
That’s a lot of jobs you are maintaining when you simply buy or sell a house. Now, I’m not saying that you should buy or sell just to give someone a job and maintain our economy, but it’s nice to know when you think about it how your one decision is affecting the families so many others.
Do you have questions about home loans or mortgage financing? Ask the expert, with over 20 years in the mortgage business we have the answers. Just ask Jackie 949 -600-0944
Ask me about our low down first time home buyer programs or home loans for Self Employed Borrowers using Bank Statements as Income.