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Nov 13, 2023 · Whether you’re a veteran agent or a rookie hoping to sound authoritative during your first transaction, you need to be able to succinctly explain common real estate terms and definitions to your clients.
- Adjustable-rate mortgage (ARM) With ARM loans, interest rates can change after an initial fixed rate period as they adjust based on the interest rate index the ARM is tied to (e.g., LIBOR, COFI, etc.).
- Appraisal. An appraisal is required to gather the estimated value of a piece of real estate. During the home sale, the mortgage lender sends out an appraiser to get a professional opinion of the value of the property.
- Appraisal contingency. An appraisal contingency is a clause that allows a buyer to dissolve a purchase agreement if a home’s appraised value is less than the sale price.
- As-is. A property marketed in “as is” condition usually indicates that the seller is unwilling to perform most if not all repairs. It could also mean that it is priced “as is”, which is typically lower than market pricing in the area.
- Appraisal: An appraisal helps the lender to assess the actual worth of a home. This is important from the lender’s point of view to make sure that the loan amount requested by the borrower is accurate.
- Closing Cost: A lot of buyers are not aware of the closing cost. Closing here refers to the transfer of title from the seller to the buyer. As a buyer, your closing cost may comprise the following: brokerage, inspection fee, property taxes, property insurance, stamp duty, attorney fee, loan application fee, administrative charges, and prepayment charges.
- Down Payment: You are quite likely to be familiar with this term. A downpayment is what a buyer is expected to pay. Usually, down payment is a small percentage of the total amount of the property which you pay upfront.
- Escrow: In real estate terms, a third party responsible for holding funds is called an escrow. This is a contractual agreement between the buyer and seller to make sure that certain conditions are met before the money is released to the seller.
- Absent landlord. A landlord described as “absent” is one who cannot be contacted. If the lessees wish to create a Right To Manage Company but are unable to contact the landlord, they are free to make a legal application to acquire the right to manage.
- Acceptance. The document you need to sign when accepting a lender’s mortgage offer.
- Annual Percentage Rate (APR) The total cost of a loan, taking into account interest charges, arrangement fees and other costs, shown as a percentage.
- ARLA Propertymark. The ARLA Propertymark (formally the Association of Residential Letting Agents), is the UK’s foremost professional body for letting agents.
Sep 13, 2024 · 11 Real Estate Terms That Every Buyer And Seller Should Know. Real estate jargon often relates to financial decisions, so it’s worth familiarizing yourself with the most important terms....
Discover our extensive Lexicon of Real Estate Terms featuring over 4,500 definitions. Perfect for home buyers, sellers, real estate professionals, investors, and students. Easily navigate key concepts from appraisal to zoning, and enhance your understanding of modern real estate language today!
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Estate - The degree, quantity, nature and extent of interest which a person has in real property. Estate in Reversion - The residue of an estate left for the grantor, to commence in possession after the termination of some particular estate granted by the grantor.
