The process of buying or selling a home comes with many steps. Included in these steps are many words and processes that are not commonly used in the everyday world. Therefore, I have decided to “de-bunk” these phrases to help guide you all the way through your real estate experience. Here are some of the most important words to know:
Appraisal – the process of determining the market value of a property.
Balanced Market – when there are an equal amount of buyers and sellers in a market.
Buyer’s Market – The market is considered a “buyer’s market” if there are more homes for sale than
Closing Date – the date that a purchaser takes ownership of their new home.
Closing Costs – these are costs that you incur after the purchase of a home. These costs can include: lawyer fees, property taxes, condo fees, and other such fees.
Deposit – When an offer to purchase is written, the purchaser will add a deposit onto the offer. This is a sum of money used to show the seller the “good faith” of the buyer. This money is held by either the real estate agent or the lawyer until the deal is complete.
Listing Agreement – an written agreement that allows a particular real estate agent to attempt to sell a property.
MLS – Multiple Listing Service – a service that allows the public and real estate agents to find valuable information on properties.
Offer to Purchase – this is the written contract created by the REALTOR of the buyer to show the terms of the deal. This contract may be changed several times before the buyer and seller come to an agreement.
Counteroffer – the response of one party to another during the negotiation period
Seller’s Market – a point in time where there are more people looking to purchase homes than there are homes available for sale.
Title – legal ownership of the property.
These are some examples of terms commonly used during the real estate process. If you have any questions about these, or any other terms or processes, I would be happy to help.