When it comes to real estate, buying and selling are among the largest financial transactions most people will ever make, with long-term consequences that could shape your life for years to come. However, the complexity of the market often makes these transactions difficult to understand, especially when special terms and industry jargon are involved. Whether you’re shopping for a home or listing yours for sale, understanding the key terms can help ensure the best possible outcome for your real estate adventure.
5 Real Estate Terms You Should Know
Comps, or “comparable sales,” are any properties similar to a given house which have recently been on the market. Knowing what other houses in the area have sold for helps buyers develop expectations, while giving sellers a starting point for setting a price.
Before approving a mortgage for a certain piece of property, lenders will require an appraisal to ensure that the property is actually worth what the buyer has offered. These are carried out by professionals and are a crucial step in a fair real estate purchase.
When making an offer, buyers have the option of setting conditions on the sale. The most common contingencies make the sale dependent on the buyer’s ability to obtain financing or the results of the home inspection.
4. Closing Costs
Buyers purchasing a home incur a range of additional costs, above and beyond the final selling price of the property. These fees vary from one region to another, but usually include origination fees, title insurance, survey costs, any taxes due, and attorney’s fees.
5. Earnest Money
When making an offer, buyers will put down a small deposit, called earnest money, to show that they are serious about purchasing the property.
The process of buying or selling real estate is complex, which is why so many homeowners and buyers throughout Charles Town and Martinsburg, WV, rely on Re/Max Real Estate Group for expert guidance and personalized attention. To learn more about their services and browse properties for sale, visit their website or call (303) 728-7477 to speak with a real estate agent today