Selling your house can require the marriage of many moving parts. If it’s your first time, you will hear a lot of terms thrown around as if everyone knows what everyone else is talking about – even veteran home sellers can find the process overwhelming. Making yourself familiar with common real estate terms can reduce your stress levels and give you more control of the situation.
Here is a list of terms to reference that might help you through the home selling process:
Appraisal
An official number set by a licensed appraiser estimating a home’s value in relation to its condition and the area it is in.
Assessed Value
The value of a home as determined by a tax assessor. This is often a different value that you might get from an appraisal but the price the assessor identifies is the amount on which you will be paying taxes.
Broker
In the real estate world, a broker is typically someone that connects a buyer with larger lending companies.
Closing
The final step in executing a real estate transaction. The closing date is set during the negotiation phase and is usually several weeks after the offer is formally accepted. On the closing date, the ownership of the property is transferred to the buyer.
Closing Attorney
The closing attorney is responsible for coordinating everything dealing with the final real estate transaction. They examine the title, provide title insurance, review all of the documents and finally distribute all of the monies and titles when the transaction is complete.
Closing Costs
These are fees that must be paid at the to complete a real estate transaction. They also include things like excise tax, loan-processing costs, and title insurance and attorney fees.
Comparative Market Analysis (CMA)
Comparative market analysis (CMA) is a report based on similar homes in the area. It is also used to show an accurate value for a home.
Comparable Sales
To find the value of a home it is helpful to look at similar homes in the area that have recently sold. These are also sometimes called “comps.”
Contingencies
Contingencies refers to the conditions to meet for a real estate transaction. For example, a home sale might be contingent on a loan approval, and appraisal value, or repairs completed on the property.
Deposit
Money deposited into an escrow account by a potential buyer before the final translation to show that they’re serious about purchasing a home. Both parties involved agree on the deposit amount.
Equity
Is the value of the home less any outstanding mortgages, liens, etc. In other words it is the amount of the home you actually own.
Fixer Upper
A home that needs quite a bit of work, usually bought at a lower price and then repaired to increase its overall value.
Foreclosure
If a borrower fails to pay or meet other terms of a loan agreement, often forces the sale of a property they’ve mortgaged. A “repossession” is another term referring to a foreclosure.
Inspection
After a buyer has made an offer on a property, they will require an inspection of the property to ensure that the house’s plumbing, roof, appliances, etc. are sound and up to code. If issues arise during inspections these may influence the negotiation of the final selling price.
Listing agent
The listing agent is a real estate agent representing the home seller. Likewise, the buyers agent represents the buyer.
Market Value
Depending on the current conditions in the market, the value of a property will vary greatly. However, based on these conditions, the lowest price that a seller will accept for a property or the lowest price a buyer is willing to pay is the “market value.”
Offer
An offer is the prospective buyer’s initial price for a property. A seller may accept the offer, reject it, or counter with a different offer. This is also called the “initial offer.”
Title
The title is a legal document that serves as proof of ownership for a property. When a home is purchased the name on the title is changed. However, the closing attorney researches the titles.
Title Insurance
Title insurance is part of the closing process often purchased through the closing attorney. It covers any research into public records to ensure that the title is free and clear, so that the home can be legally sold by the seller. If you purchase title insurance it is helpful if later you find that there are in fact liens on the property.
Wholesaler
A wholesaler enters into a contract for a home with a seller, then finds an interested party to buy it. The wholesaler contracts the home with a buyer at a higher price than with the seller, and keeps the difference as profit.
We Buy Houses, Fast
Being well informed is important when selling your home or buying a new one. Being able to communicate with your agent and potential buyers is the first step. We Buy Houses Memphis is a real estate investment company that buys houses fast for cash. The house selling process is fast and easy. You fill out a contact form, answer a few basic questions about the house, schedule a walkthrough, and receive your offer. That’s all you have to do, and there is absolutely no commitment. You can hear the offer and make up your mind after that. Contact us today and explore the easy path to selling your home in Memphis.