Navigating the real estate market can be a pretty daunting experience. Whether you’re looking to sell your current home or hoping to find and purchase something in a new neighborhood or city, the process is rife with stress, confusion, frustrating negotiations, and a LOT of terminology that can easily overwhelm anyone who isn’t already familiar with the process. (Note: it’s our job to take on that stress on your behalf…and we’re happy to do it!)
We’re here to guide you every step of the way, but we also know that transparency is so important.
To help demystify the process, we’ve compiled a list of essential real estate terms that everyone should know. In the next few weeks, we’ll also be compiling a short list of buyer-specific and seller-specific vocab as well. In the meantime, we trust that getting familiar with these more general terms will empower you to act when you’re ready and make the process feel just a touch easier.
REAL ESTATE GLOSSARY, PART I (for buyers and sellers):
Appraisal: A professional analysis used to estimate the value of a property; this typically includes examples of comparable properties in the area.
Multiple Listing Service (MLS): A clearinghouse through which member real estate brokerages regularly and systematically exchange information on listings of real estate properties and share commissions with members who locate purchasers.
Negotiation: The process of discussing terms and conditions between the seller and buyer to reach an agreement.
Contingency: A condition that must be met before a contract is legally binding. Example: An appraisal contingency allows buyers to cancel the contract if the home they want to buy appraises for less than the agreed-upon price.
Closing Date: The date when the property sale is finalized, and ownership is transferred from the seller to the buyer.
Title Transfer: The legal process of transferring ownership of the property from the seller to the buyer.
Commission: The fee charged for real estate services performed, typically based on a percentage of the price of the home sold or a predetermined percentage.
Market Condition: The state of the real estate market, which can be classified as a buyer’s market, seller’s market, or balanced market. the closing of a mortgage loan, generally including, but not limited to a loan origination fee, title examination and insurance, survey, and prepaid items, such as escrow deposits for taxes and insurance.
Principal: The amount of money borrowed or the amount of the loan that has not yet been repaid to the lender. This does not include the interest that is paid to borrow that money.
Offers: Proposals made by potential buyers to purchase a property, usually including the price and terms.
Counteroffer: An offer made in response to a previous offer. For example, after the buyer presents their first offer, the seller may make a counter-offer with a slightly higher sale price.
As always, the Homeworks team is here to answer any questions you may have about this process. Feel free to contact us anytime for all things real estate. We've got the experts on hand and the experience to help!
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