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Buying a home is an exciting life moment. A house provides a place that is truly your own, with all the benefits and responsibilities that come with it. However, the buying process is sometimes filled with industry terms that are difficult to keep up with. Consult the guide below for some of the most common terms you should know, and consult a real estate lawyer for further assistance.

Common Real Estate Jargon

1. Escrow

Escrows are done to protect both the buyer and seller. Your lawyer will give your “earnest money,” which proves your interest in the property, to a third party who will hold on to it until the deal is closed. The third party keeps it from the seller, who still has to provide the deed. When negotiations are final, the buyer will receive the deed, and the seller will receive the money at the same time.

2. Contingencylawyer

Both parties have an agreement that certain conditions must be met before the closing. For example, as part of your contract, the seller has to replace the roof. If upon inspection, the roof hasn’t been replaced, your lawyer can cancel or renegotiate the contract.

3. Homeowner’s Association

If you’re buying a home in a development (such as a condominium, gated community, or townhouse), you’ll have to join a homeowner’s association along with purchasing the home. HOAs require monthly or yearly fees for maintenance, repairs, and amenities like pools or Jacuzzis. The fees can’t be negotiated by a real estate lawyer, and differ depending on the development.  

4. Appreciation & Depreciation

A home’s value increases and decreases over time due to external factors. Inflation and demand may make your home more valuable than it was when you originally purchased it, allowing you to make a profit on the property if you decide to sell. However, depreciation may occur through external and internal factors, such as state and federal economic conditions, and the property’s and condition.

5. Comparative Market Analysis

A Comparative Market Analysis is about knowing a property’s value, which is determined by evaluating comparable homes in that area based on location, condition, and price. Once a CMA has been determined, your broker or lawyer will help you form an initial offer on the home and begins negotiations.

 

If you’re buying a home, Bernardini Law P.C. can make the process easier to navigate. Christine Bernardini and her staff provide professional and personalized service that has made them among the most respect real estate lawyers in North Andover, and the greater Boston area since they opened their doors in 2011. Representing both buyers and sellers, they are determined to make sure everyone’s needs, and concerns are respected. This full-service law firm handles everything from sales and closings to tenant-landlord matters and condominium representation. For a complete list of their services, visit their website. To schedule an appointment, call them at (978) 794-5525.

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