As with any industry, real estate has its own jargon. Here are 10 words and phrases you should know if you're selling a home.
Appraisal – The estimation of a property’s market value by a licensed real estate appraiser. Buyer's Agent - The real estate agent who represents the buyers in the home-buying process. Competitive Market Analysis - An estimate of your home's value based on recent sales of similar properties in the same area. (Read our full post on this topic HERE.)
Contingencies - Provisions in the purchase agreement that have to be met in order for the purchase of a home to be finalized. For example, there may be contingencies that the loan must be approved or that certain repairs must be made before closing. Due Diligence Period - The period of time after signing the contract that the buyer has to inspect the property and decide if they want to move forward with the transaction. Before the due diligence period expires, buyers can walk away from the contract without penalty. Typically, the home inspection takes place during this time. Equity - The difference between what you owe on your mortgage and what your home is currently worth. (See our full blog post on this topic HERE.)
Listing Agent (also known as the Seller's Agent) – a real estate agent who works with the property owner to list their property for sale on the market. Seller's Disclosure - A legal document that sellers must fill out to reveal and explain defects and conditions of the home they're selling, including events that have happened on the property, in order to provide a clear picture of the home and it's history. Showing - A private viewing of your home for a potential buyer. Staging - The preparation of your home for sale where the home is made to be visually appealing to the highest number of potential buyers. This could include adding or removing decor, clearing out clutter, rearranging furniture, all to prepare the home for listing photos and showings. If your home is empty, staging could include bringing in furniture and home decor.