Here are simple definitions of some terms that you may hear throughout the buying and selling process of your home or property. If you would like extra explanation of any of these terms, please don’t hesitate to ask your RE/MAX Real Estate Results Agent!
Listing: Any kind of property or piece of land for sale.
Showing/Showing Appointment: A confirmed request to show a listed property of piece of land.
Pre-Approval Letter: A letter from your bank/lender stating the amount of money you are potentially eligible for obtaining a mortgage.
Offer/Real Estate Contract: An accepted offer made by a buyer and agreed upon by a seller to purchase real estate.
Contingent: An offer has been accepted but is dependent on other circumstances that are outlined within the real estate contract.
Earnest Money: “Good Faith” money, deposit made by the buyer to the seller in a transaction. Held typically in an escrow account.
Home Inspection: Property condition examination by a qualified inspector.
Market Value: The highest price that a property should bring in fair and competitive market conditions.
Appraisal: A process completed to determine market value on a property or land.
Escrow: Earnest money and deposits placed into an impartial third-party account, called an escrow account.
Mortgage Insurance: A fee charged to protect a lender from a potential buyer loan defaulting.
Homeowner’s Insurance: Property and liability insurance for residential property.
Home Warranty: Not to be confused with homeowner’s insurance, a home warranty protects your home’s appliances from breakdowns.
Title: A bundle of rights of a piece in a property.
Closing Costs:These fees are paid at the end of the transaction and can be paid by the seller, buyer or both as determined in the real estate contract. The fees are associated with title search and transfer, taxes, insurance, surveys, appraisals and much more.
Signing/Closing: Signing all of the necessary paperwork to close on the sale of your property or purchase of your new property.
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