Mastering the world of real estate involves understanding key terms crucial to your transactions. From appraisals to contingencies, each term plays a vital role in your property journey. Familiarize yourself with these essential terms to confidently navigate the complexities of buying or selling property.
Appraisal - An appraisal is the value that is assigned to the real estate asset based on an assessment of the asset, neighborhood, market condition and more.
Closing - Closing is when the money is given and the keys are received.
Closing Cost - The closing cost is the amount that is paid, in addition to the sale price. This can include: taxes, insurance and lender expenses.
Contingency - A contingency related to a property is when the preliminary offer is accepted, pending certain conditions set out by the seller.
Good Faith Money - Good faith money is the balance of funds that are set aside into a trust or an escrow account to show the buyer is serious and committed about the purchase.
Home Inspection - A home inspection is an official review of the real estate asset’s current condition. They will help to determine if there is any work needed to be done to the property to bring it to normal working order.
Offer - An offer is a preliminary agreement between the buyer and the seller to buy a house.
Pre-Approval - Pre-approval is the first step in getting a mortage to buy your preferred home. The financier or banker will conduct an assessment or audit of your income, debt and credit worthiness. You will need someone to be ready to bid on a home.
Title Search - A title search will confirm that the property that is being sold in fact belongs to the seller.
With these essential terms at your fingertips, you’re well-equipped to navigate the real estate landscape. Armed with knowledge, confidently approach buying or selling property with clarity and understanding. Congratulations on expanding your real estate vocabulary - may it empower you in all your future endeavors!