Whether you’re thinking about listing your home for the first time or jumping into the hot Charlotte market, there are lots of real estate terms you’ll hear along the way! Luckily, with the help of our team at Premier Property Solutions, we’ll guide you every step of the way by answering any questions you might have. But, for those of you who like to do your homework, we’ve put together a list of 5 common real estate terms you should know before you dive into the market.
1. Mortgage– simply put, the charging of a property to a creditor as security of a debt (your home) with the understanding that the debt will be repaid in the determined amount of time at the determined rate. Basically, a mortgage is a way to use your home as collateral until you can completely pay it off. Unless you are an all cash buyer, it is a very common practice in real estate to take out a mortgage to pay for your home.
2. Appraisal– an evaluation of a property by a licensed professional to help determine the bank’s lending amount. During an appraisal, the licensed professional will estimate the value of your home based on a variety of factors such as square footage, home improvements, interior/exterior features and comparable homes in your neighborhood. If you are selling your home, your real estate agent might suggest an appraisal to better determine the listing price of your property.
3. Comparable Homes– more commonly known as “comps”, these are recently sold homes in your neighborhood that are used to determine the value of your home. The homes must have a variety of similarities to be considered a comp such as square footage and current condition. Real estate agents will use comps to help determine the best listing price for your home (seller) or, alternatively, to create a solid offer on a potential home (buyer).
4. Inspection– Once you’ve made an offer on a home and it’s been accepted, you’ll need to schedule an inspection. The inspector will evaluate the home’s condition by checking on things like the roof, foundation, HVAC system, electrical wiring and more. The inspection helps the buyer understand the true condition of the house. Once the report is submitted, the buyer will have the opportunity to negotiate repairs and or terms of the contract.
5. Closing Costs– When you purchase your first home, you can expect to pay fees. Closing costs are the fees associated with closing which include attorney and application fees just to name a few. Your real estate agent will be able to determine the exact amount you’ll owe at closing taking all of the guess work out of it!
The list of real estate vocabulary goes on and on for pages, which is why you should rely on the help of a great realtor during the process. We’re here to help you every step of the way so you can do as little or as much homework as you’d like.