Real Estate Glossary Series: Common Terms for Buyers and Sellers

Dated: November 20 2023

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Welcome to our Real Estate Glossary Series, where we'll demystify the world of real estate by explaining common terms and jargon that buyers and sellers encounter during their property transactions. Whether you're a first-time buyer or a seasoned seller, understanding these terms will empower you to make informed decisions. Let's get started:

1. Appraisal: An appraisal is a professional assessment of a property's market value conducted by a licensed appraiser. It's often required by lenders to ensure the property's value aligns with the loan amount.

2. Closing Costs: Closing costs encompass various fees and expenses associated with completing a real estate transaction. These may include attorney fees, title insurance, lender fees, and more. Both buyers and sellers typically have their own set of closing costs.

3. Contingency: A contingency is a condition that must be met for a real estate contract to become binding. Common contingencies include financing, appraisal, inspection, and the sale of the buyer's current home.

4. Equity: Equity is the difference between a property's market value and the amount owed on any outstanding mortgage loans. It represents the homeowner's ownership stake in the property.

5. Fixed-Rate Mortgage: A fixed-rate mortgage is a home loan with an interest rate that remains constant for the entire loan term. This offers predictability as monthly payments remain the same.

6. Home Inspection: A home inspection is a thorough examination of a property's condition, usually conducted by a licensed inspector. It helps buyers identify any issues or repairs needed before closing the deal.

7. Listing Agent: A listing agent is a real estate agent who represents the seller. They are responsible for marketing the property, negotiating offers, and facilitating the sale.

8. Mortgage Pre-Approval: Before house hunting, buyers can seek a mortgage pre-approval from a lender. This process assesses their creditworthiness and provides an estimate of the loan amount they qualify for.

9. Multiple Listing Service (MLS): The MLS is a database used by real estate professionals to list and access properties for sale. It contains detailed information about homes, facilitating the buying and selling process.

10. Title Insurance: Title insurance protects buyers and lenders from potential disputes over a property's ownership rights or legal claims against the property. It's typically purchased during the closing process.

Understanding these common real estate terms is a great first step in navigating the real estate market confidently. Stay tuned for more terms and jargon in our Real Estate Glossary Series to enhance your real estate knowledge.

 

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Simi Kapoor

I'm Simi, your dedicated and proactive local real estate expert, proudly licensed and serving in New Jersey with RE/MAX! Whether you're buying or selling, I'm here to make the process seamless and tai....

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