If you are new to the real estate market or have been down this road before, there are probably some real estate terms that you aren’t quite familiar with. Here are 10 terms to help you feel knowledgeable in the complicated world of real estate. .
This term refers to the third party that deals with the property transaction, the exchange of money, and any related documents.
2. Earnest money
This is the money that you put down before closing on a house to say that you want that house. It’s like a deposit that you get back at closing.
This refers to the status of the home. When a home is contingent the buyer and seller need to agree to certain terms before the status of the listing can go to pending.
4. MLS (Multiple Listing Service)
This is the database used by realtors and brokers to find and list homes on the market. Your realtor can find homes before they are on the market and help you find a home that fits your needs.
5. Closing costs
To close on a house it requires several fees. All these fees come from different sources who helped you get your home, like a lender, title company, insurance company etc.
When a home is referred to “as-is” this means that the seller wants to sell the home with minimal (or even zero) repairs. The seller may also mean this by keeping the price as-is.
An inspection is a crucial part of buying a house. This is where you have a licensed professional come in and check out the house for any kind of red flags. These can include any signs of radon detection, anything concerning the structural components of the home, issues with electrical systems and plumbing and more.
8. Under contract
This status of the home is when the seller has accepted an offer from the buyer, but the transaction still has not closed.
9. Fair market value
This is the price of the home of how it would sell under normal market conditions. The price comes from assessments and appraisals that determine the value of the home.
An addendum is when the buyer or seller wants to make changes in the contract so they outline the part that they want adjusted. Everything else in the contract stays the same.