House hunting is a fun and exciting experience! But don’t let that excitement be dampened by confusion. As you go about the house hunting process, you may hear some words and terms that you are unfamiliar with. Knowing what these terms actually mean can help you move through the home purchasing process with confidence. Which is why we have compiled a list of key terms that realtors use that you should know the meanings of.
A buyer's agent is a real estate agent who represents the interests of the buyer in a real estate transaction. They assist the buyer in finding suitable properties, negotiating offers, and guiding them through the buying process.
Seller's Agent/Listing Agent
A seller's agent, also known as a listing agent, represents the seller of a property. Their role is to market and sell the property on behalf of the seller, negotiate offers, and facilitate the transaction.
Multiple Listing Service (MLS)
The MLS is a database used by real estate agents to share and access property listings. It provides detailed information about properties available for sale, including their features, location, price, and other relevant data.
Comparative Market Analysis (CMA)
A CMA is a report prepared by a real estate agent to help determine the fair market value of a property. It analyzes recent sales of comparable properties in the area to provide an estimate of the property's worth.
Closing costs are expenses incurred during the process of transferring ownership of a property. They include fees for services such as title search, appraisal, attorney fees, loan origination, and other related costs. Buyers should budget for closing costs in addition to the purchase price of the property.
A contingency is a condition or requirement that must be satisfied for a real estate contract to be legally binding. Common contingencies include a satisfactory home inspection, appraisal, loan approval, or the sale of the buyer's existing home.
Escrow refers to a neutral third-party account that holds funds, documents, and other assets related to a real estate transaction. It ensures that all conditions of the purchase agreement are met before the transfer of ownership and disbursement of funds.
Title insurance is a policy that protects against any defects, liens, or claims on the property's title. It provides coverage in case there are unforeseen issues with the property's ownership history.
It's essential to communicate openly with your real estate agent and ask for clarification whenever you encounter unfamiliar terms or concepts during the home buying process. They are there to guide you and ensure you have a clear understanding of the terminology and the overall transaction. But hopefully this quick list has given you insight to some of the most common real estate terms you are bound to encounter. And if you haven’t started your home search yet, why not start here? Our DiCharry Homes are built with you in mind in our design center.