Common Real Estate Terminology You Need To Know
Most people will be involved in real estate in some way. Whether it’s buying a new home, selling an old home, renting a vacation home, buying a vacation home, and so on and so forth, there’s a lot of different ways real estate impacts peoples’ lives. For this reason, it’s important for everyone to know basic real estate terminology. Here are some of the most common terms that get thrown around in real estate and what they mean.
An appraisal is when a homeowner or home buyer hires someone to come to the home and give a professional opinion on how much it’s worth. There are two times when an appraisal should be done. The first is when a seller wants to get an estimate on what they should price their home at. The second time is when a buyer has had their offer accepted. If the buyer is using a mortgage to purchase the home, the mortgage provider may require that the buyer has the home appraised to ensure that it’s worth the money the provider is lending them.
Closing is what occurs when a home has been sold. The buyer, seller, and both of their agents will meet together to facilitate the final sale of the home. While at closing, the buyer and seller will sign all the final documents and pass along any keys, garage door openers, or other means of getting into the home to the buyer. After closing, the sale is official.
A home inspection is one of the most important parts of buying a home. After the buyer’s offer has been accepted but before closing, the buyer has a set amount of time to do a home inspection. This is when the buyer hires a home inspector to come to the property and do an in-depth inspection of the home and property to look for anything that may be wrong with it. If something is wrong with the home, the buyer can negotiate with the seller for fixing it before closing, or it can potentially allow the buyer to back out of the deal.
Buyer’s and Seller’s Markets
There are two main types of housing markets that can occur: a buyer’s market or a seller’s market. When a buyer’s market is occurring, it means there are more homes for sale than there are buyers, meaning the sellers need to be competitive if they want to sell their home. This makes it the optimal time to buy a home.
By extension, a seller’s market is the opposite—it’s when there are more buyers looking for homes than there are people selling homes. This forces the buyers to submit their best offers if they want the best chances of getting their offer accepted.
Real Estate Agents and Realtors
Many people think real estate agents and Realtors are the same thing. However, while all Realtors are real estate agents, it isn’t the same the other way around. The difference between the two is that all Realtors are members of the National Association of Realtors (NAR). In order to become a member of the NAR, an agent must pass online courses, follow an official Code of Ethics, and they must also retake the courses every four years in order to maintain their certification. Neither of these types of agents are inherently better than the other.
No matter what someone is doing with their Fayette County property, they need to understand all the common real estate terminology. These are some of the basic terms to get started, but it’s a good idea to research anything else that is unfamiliar.