Whether you’re looking to become a homeowner, investor or general expert on all things real estate, it’s important that you’re able to speak the language. There’s always more to learn, but there are a few key phrases that will aid your learning efforts tremendously, as well as make your participation in the craft significantly more enjoyable.
Here are the top real estate phrases to know:
Appraisal
If you choose to apply for a mortgage, your lender will need an appraisal of the home you wish to purchase. A licensed appraiser would then base the estimated value of your prospective home off of an investigation into the property and the value of comparable homes that have been sold in the area.
Pre-approval Letter
Before applying for a mortgage, you’re best served getting a pre-approval letter from the bank, estimating how much they’ll lend you. This can help determine what you’re able to afford, and will add an extra layer of confidence for home sellers that you’ll be capable of getting a loan when needed.
Fixed Rate vs. Adjustable Rate Mortgages
A fixed rate mortgage has a set interest rate throughout the life of a loan, usually around 30 years, whereas an adjustable rate mortgage has a variable interest rate for the length of its 5, 7 or 10-yr lifespan.
Contingencies
When putting an offer on a home, one can mention specific actions that would have to take place prior to the deal going through. These actions, called ‘contingencies,’ could include an inspection, particular repairs, getting the loan itself, and more. Be sure to discuss these with your agent!
Listings
A listing shows information about a home, such as its price and number of bedrooms, generally on a website.
Contracts and Offers
After you’ve find the best home for you, you’ll make an offer on the property (with the help of an agent or attorney, hopefully!). There’s a good chance that the seller will counter your original offer, which would be due to their desire for a higher price or shorter timeline for the sale. Adding a cover letter explaining why you’d like to buy the home to an offer is a nice touch that’s worth taking the time to write.
Buyer’s Agent and Listing Agent
In the home-buying process, there are usually two agents- the buyer’s agent and the listing agent (who represents the home seller). On occasion, there may arise a situation in which one agent represents both sides of the transaction, known as ‘dual agency,’ which is definitely worth avoiding!
Source: https://www.redfin.com/resources/10-real-estate-terms-to-know