Real Estate Value Chain

The real estate value chain refers to the different stages of a property transaction where value is added by various parties providing their own specific set of skills.

It is sort of like how the supply chain is illustrated of how raw material is transformed into an end-product that ends up on the shelf of a supermarket and finally in the home of a consumer.

Some of the more significant players in the real estate value chain include the below.

Real estate agents

They help buyers and sellers find suitable houses to buy and serious buyers to sell to.

Mortgage brokers

These are the home loan experts who can quickly and easily help borrowers find the most attractive loans in the market that suits their needs.


Most often in the form of banks, they provide the mortgage a buyer needs to finance the home purchase.


Lawyers play an important role in documenting the paperwork required to ensure a transaction has legally taken place.


Lenders require their service in order to obtain a credible estimated market value of the property in question.

Insurance companies

They underwrite the essential and non-essential insurance policies for the new home owner.

Home inspectors

Home inspection can sometimes be a requirement of lenders. But usually are conducted by buyers to ensure the integrity of the house before going ahead with closing.

Title company

They provide the service of researching titles and the proper transfer of it.

Escrow service

To protect the interest of all parties involved, escrow is a fair and safe way to give all parties peace of mind.

Interior designers

To design and manage the remodeling works till completion.

Furniture store

A huge portion of sales from furniture stores come from new home owners. This will include electrical appliance stores and furnishing stores as well.


To undertake the task of electrical, plumbing, and miscellaneous work on the house.


As can observed above, a lot of players generate a lot of revenue from real estate transaction taking place.

It is no wonder the real estate industry is considered a crucial industry in any economy other for it’s obvious reasons.

It must however be noted that this list is not complete.

A lot more service providers do play a smaller part in making up the value chain.

The ones listed here are just the more significant players.