Shopping for a new home can be an interesting time for most people but without knowing common real estate terms, it can be quite confusing. You need to learn what these common terms mean so that you know what to look for when searching for a house.
To help you get the right home for your family, here are some common real estate terms and their meanings.
Common Real Estate Terms when Negotiating
When negotiating Las Vegas real estate offers, you’re likely to see some terms and not know what they mean. Some of these terms will be abbreviations.
Below is a list of common real estate abbreviations and their meaning.
- SQ. FT – Square Foot of the house
- FB – Full Bathroom
- HB – Half Bathroom
- DR – Dining Room
- FR – Fireplace
- LR – Living Room
- BR – Bedroom
- HOA fees – Home Owner’s Association Fee based on the HOA directives
Aside from these abbreviations, here are two terms that will help you understand negotiations.
Escalation Clause – This is a term commonly used in bidding wars. The escalation clause is where the buyer declares the specific bidding amount if other bidders outbid him or her.
Earnest Money Deposit – This is the money that will be placed in an escrow account for the purchase of the home. It’s used to show that the buyer is serious about buying the home.
Common Real Estate Terms about Home Value and Financing
If you’re interested in buying a home, then what follows is learning about the financing and home value terms that brokers might use to describe the housing. Some of the terms include the following.
Mortgage – Buying a home through financing is done through a mortgage. There are different financial institutions that offer mortgages, so learn about the mortgage terms before buying through financing.
Down payment – This is the cash payment that the buyer has to pay at closing. The remaining amount is what the mortgage will cover.
Assessed Value – This is the value of the house that the local entities will assign for the tax valuation process. It is common for this amount to be different from the appraisal value.
Appraisal Value – This is the estimate provided through an unbiased professional stating the value of the house based on market prices. There are many factors that go into getting such a value, including recent home sales in the same area.
Common Real Estate Terms when Closing a Sale
When it comes to closing a home sale, there are a few terms that you’re likely to come across. Below are a few examples.
Closing Costs – These are the expenses that come with the transition of the property from the seller to the buyer. Such costs can also include non-recurring fees such as legal fees and agent commissions.
Under Contract – This is when the seller accepts the buyer’s offer. This, however, does not finalize the sale. The sale is only complete when other contingencies have been met.
Contingency – Contingencies are the conditions buyers need to meet before the sale is completed. This can include inspections, appraisals, home repairs, and financing options.
With this rundown, you should now have an idea on some of the most common real estate terms. Whenever you’re in doubt about the meaning of a term, ask for more clarification. It helps to make the right decision when you have all the right information.