5 Important Real Estate Terminologies You Should Know

Written by Posted On Wednesday, 26 June 2019 03:54

For those individuals new to home selling and buying, the real estate language keeps adding new terms to an already complicated home sale process. Taking time to make sure you understand the terms associated with real estate can assist both sellers and buyers educate themselves on the entire process, as well as eliminate confusion, and prepare themselves for a smooth and swift transaction.

Real estate terms we will explain in this article include:

•   Appraisal

•   Listing agent/buyer’s agent

•   Contract

•   Closing costs/closing

•   Condominium

We have alphabetically put together a list of 5 real estate terminologies you need to know. Understand all these terms, and you are half way to either buying or selling a home successfully.

1.   Appraisal

An appraisal is needed for gathering the estimated value of real estate pieces. During the process of selling the home, the mortgage lender hires an appraiser and sends him/her to get an expert opinion of the value of the property. This will help the mortgage lender make a decision whether the property is worth the loan, the buyer is seeking.

2.   Listing agent/buyer’s agent

A listing agent is a representative of the home seller’s interest, he prepares and markets the home for sale.

A buyer’s agent is a licensed and qualified real estate professional with the responsibility of finding homebuyers their dream houses, as well as representing their interests in real estate transactions.

Both listing and buyer’s agent charge a commission that is usually 2% to 3% of the agreed contract price in each home sale. The seller is usually responsible for the payment of both commissions.

3.   Contract

A contract is an obligatory document that list out the terms of a property sale. Whenever a house is under contract, it implies that both the seller and buyer have agreed on the contract price and other sale terms.

4.   Closing costs/closing

Closing costs are different types of cost and expenses that are paid at the end of a real estate deal. Normally, closing costs cover title search, taxes, appraisal, processing fees, and loan fees.

Closing refers to the end of a real estate deal. The closing date is typically set at a time which allows the home buyer to carry out prosper inspection on the home, and also for the mortgage lender to finish up the underwriting process. At the close of the deal, the parties involve will carry out the final paperwork, and the homebuyer will receive the keys to the house.

5.   Condominium

A condominium often referred to as condo, is a living space, closely related to an apartment, however independently suitable and thus regarded as a real estate. Its building structure is divided into different units which are owned separately and surrounded by other common areas which are jointly owned.

Real Estates agents like Avenue South Residence are specialize in selling and drawing house and floor plans for new condo launch. Thus, if you desire a condo instead of an apartment, you can hire a realtor ro assist you.

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