Confused by real estate jargon in your homebuying journey?
You're not alone, especially if this is your first time buying a home.
Here's a list of common real estate terms to help you better under the buying and selling process.
Real Estate Terms
Closing
A closing is when paperwork is signed, money is exchanged, and a home legally transfers from the seller to the buyer. P&S agreements must have a closing date and location.
Contingency
A contingency is a condition required for a party to proceed with a home sale or purchase. For example, the ability to purchase might be contingent on the sale of their existing real estate. Other common contingencies are for performance of an inspection and receipt of a mortgage commitment.
Good Faith Money
Good faith money refers to deposits given by a buyer with a contract to purchase a home. It shows that a buyer is proceeding in good faith. Deposits are commonly retained by the listing company for a seller and given back to a buyer at closing.
Market Analysis
Market analysis is a report that evaluates your home to similarly-styled properties that sold recently in the area. It usually produces a price range given the current economy.
MLS
MLS stands for Multiple Listing Service. This is a database where members of the MLS enter homes for sale. Different areas commonly have different MLS systems, and some states could have several. Non-real estate agents are not granted permission to log in to the listings but may obtain access through authorized parties.
Property Assessments
This is the figure placed on homes by a public tax assessor and for the purpose of determining real estate property taxes. Assessed value has no relation to the selling price of a home.
Walk-Thru
Walk-thrus typically are scheduled shortly prior to closing. It allows a buyer to preview a home and to ensure that the condition has not changed from the previous time they visited it.
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