Don’t get it TWISTED
Does real estate confuse you? The terms, the process, the numbers?
Well, don’t get it twisted…
I want to take away the confusion a bit and help you better understand some of the frequently used real estate terms and their meanings.
Appraisal: an estimate of the value of property resulting from an analysis of facts about the property. An opinion of value.
As-Is: means that the seller is offering the home in its current condition and has generally stated that any defects known or unknown to them will not be fixed as a condition of the sale.
Backup Offer: The term backup offer refers to an offer submitted by a potential home buyer to a seller with the understanding that the seller has already accepted an offer from someone else. If the first offer doesn’t go forward for some reason, then the backup offer would be considered. If a home is especially desirable it may be that there is more than one backup offer from buyers interested in the home.
Buyer’s market: There are many sellers and few buyers, so sellers must compete for the available buyers, which usually means lowering the prices.
Closing Costs: In addition to your down payment there are a number of other costs associated with the purchase of and transfer of ownership of a property.
Deed: document that transfers title to real property.
Down Payment: The down payment is the money that you will put down from your savings or other sources towards the purchase of your new home. Minimum down payment requirements are different from lender to lender so you will want to research the options that best meet your needs and resources.
Earnest Money: A sum of money given by the buyer, and held in a trust account by the broker, as a good faith commitment to honor the contract to purchase the home. At the time of closing this money will be credited towards your down payment and other closing costs.
Foreclosure: A situation in which a homeowner is unable to make full principal and interest payments on his/her mortgage, which allows the lender to seize the property, evict the homeowner and sell the home, as stipulated in the mortgage contract.
Fixture: anything permanently attached to the land.
Mortgage: a loan to finance the purchase of your home.
Offer: Offer refers to the amount that the interested home buyer “offers” to the seller for the purchase of a property offered for sale. The offer will be written up and formally by your licensee/broker and presented to the seller’s licensee/broker for consideration.
Prequalified: Before you begin your home search in earnest you will want to meet with a lender(s) and get “prequalified” What this means is that your lender will have you fill out an application and then assess your income, credit score, and other financial information and advise you on how much of a mortgage you will be able to obtain from the bank and thus how much you will be able to pay for a home..
Seller’s market: buyers must compete among themselves for properties.
Title: Title refers to the right to ownership of a piece of property.
Townhouse: One of a row of houses usually of the same or similar design with common side walls or with a very narrow space between adjacent side walls.
Will: A written, legal declaration of a person expressing his or her desires for the disposition of that person’s property after his or her death.
Don’t see a term on here that you would like a better understanding of? Send me a message & I will gladly give you a greater understanding.