Like any industry, real estate has its fair share of jargon. Some of these terms are fairly common enough for the average citizen, while others are not as known. If you’re a professional working in the industry, then you’re (hopefully) very familiar with these terms. However, if you’re a buyer or seller, and you’re not very experienced with the industry, then you’ll probably be in over your head. That’s precisely why I’ve compiled a list of some of the most commonly used real estate terms so that you’re better prepared to deal with professionals in the industry.
This is, admittedly, a more common term, however, I am simply making sure that I am covering all of my bases. An appraisal, in essence, is an evaluation of your property’s worth. The process is completed, unsurprisingly, by an appraiser who comes to a decision based on the sales prices of previous houses in the surrounding area. If you’re a first-time buyer or seller, you will certainly become familiar with appraisal.
So you’ve decided on the house you want to buy, and you’re ready to make your payment and move in! But wait, before you can even close, you’ll have to pay the closing costs. Closing costs are, as the name implies, any expenses that you are required to pay at the time of closing a sale on a property. There are several different kinds of payments that can constitute as a closing cost, but some of the most common are appraisal costs, taxes and attorney fees.
This may come as a surprise to many, but REALTOR is not an appropriate term for all real estate agents. The term is used synonymously with real estate agent, but technically speaking, a REALTOR is only an agent who is a registered member of the National Association of REALTORS.
One of the best things about owning a home is that you stand to gain a great profit depending on your equity. In short, equity is whatever the value of the home is, after factoring in any charges against it. You will certainly want to become familiar with equity as you become a homeowner.
Real estate is an industry with a dizzying amount of terms. These are only a few of the most common that you will come across during your journey of purchasing or selling a home. Good luck!