If you’re thinking of changing careers and opening a real estate franchise, becoming familiar with industry terminology is a must before opening a business. Knowing the proper phrases will leave you better equipped to help clients find their dream dwellings and navigate the negotiation process. Although there are several words to devote to memory, below are three oft-used terms to get you started. 

3 Real Estate Terms to Familiarize Yourself With 

1. Appraisal

To afford the properties they want to buy, many people apply for mortgages. To protect their investments, lenders require home appraisals before handing out loans. A licensed appraiser will examine the building or land to get a better idea of its value compared to similar properties that recently sold in the area. This way, the lender will know if the sales price is higher than the property’s actual market value. They can adjust the terms of the mortgage accordingly, ensuring the property can be sold for enough money to cover the loan if the person defaults on their mortgage.     

2. Contingencies 

Before a client puts an offer on a property, they are entitled to outline certain requirements, or contingencies, for the transaction to go through. The conditions often include whether the loan can be secured, whether the inspection brought to light any major problems, whether there are any issues with the title, and whether the property value is actually in line with the sales price. 

3. Closing Costs

In addition to the sales price, a buyer will also have to pay closing costs before the title of the house is transferred to their name. The fees often account for up to 5% of the purchase price. The costs often cover title insurance, loan processing, credit reports, and escrow deposits for property taxes.

If you want to open a real estate franchise in Iowa, Minnesota, South Dakota, North Dakota, Wisconsin, or Illinois, turn to the team at EXIT Realty Upper Midwest. The industry experts will provide investor training to help you flourish in your real estate career and boost profits. To learn more about the real estate franchise options this company provides, call (651) 505-3570. Visit them online for more information about training and mentoring programs, and like them on Facebook for advice on growing your real estate franchise and becoming an effective leader.