The home sale process is complicated enough to begin with. Real estate lingo can make it even more complicated, especially if it is your first time buying a property. In this article are details on frequently used real estate lingo. This will help you better understand the home buying and selling process.
Frequently Used Real Estate Lingo
Comparative Market Analysis
A Comparative market analysis is a document that evaluates your real estate to homes with similar features that sold recently in the same neighborhood. It traditionally provides a price range for which your property may sell in the specific market.
MLS stands for Multiple Listing Service. This is a database where members of the MLS submit listings. Different regions normally have different MLS databases, and some states could have more than one. Non-member of MLS are not given login permission to the database but can receive listings from real estate professionals.
This is the value placed on properties by a local tax assessor and for the purpose of estimating property taxes. Assessed valuation has no relevance to the market value of a property.
Walk-thrus usually are scheduled just before settlement. It allows a buyer to preview a home and to check that the condition has not altered from the last time they visited it.
Purchase and Sale Terms
A contingency is something necessary for an individual to proceed with a home sale or purchase. For example, the ability to purchase might be based on the sale of their old real estate. Other typical contingencies are for satisfactory inspection and ability to obtain financing commitment.
Good Faith Money
Good faith money refers to deposits submitted by a buyer with a agreement to purchase real estate. It shows that a buyer is acting in good faith. Deposits are almost always held by a listing agency for a seller and given back to a buyer at closing.
Real Estate Closing
A closing is when documentation is signed, funds are exchanged, and real estate legally changes hands from the seller to the buyer. Purchase agreements should have a closing date and place.
Additional Information on Real Estate Lingo
This article lists details on frequently used real estate lingo and includes only some common terms. For more detailed real estate definitions and advice, contact Peter DaMore at 781-229-7900 or firstname.lastname@example.org.