Real Estate Lingo You Need to Know if Your Buying or Selling a Home
Buying or Selling a home can be a crazy whirlwind, filled with new scenarios, and possibly some vocabulary you aren't familiar with. Luckily, as Relators, we live and breathe everything that you need to know about Real Estate. We do know, however, how confusing it can be if you aren't used to some of the terms that you may hear during the process.
We've got you covered!
Here is some of the industry lingo you may hear, and want to know, during the home buying and selling process:
TISH: Truth in Sale of Housing - This is a document required by certain cities in the Twin Cities metro. Sellers should have this completed prior to putting their home on the market, and should address any required repairs from the Inspection.
Offer: An agreement between the buyer and the seller of a property. This comes in the form of the Purchase Agreement and is a contract.
Contingency: A contingency is an item that must be addressed in order for the purchase agreement to come together for closing. One of the most common of these is an inspection contingency.
Earnest Money: Deposit made by the buyer after an offer is accepted. Used as a symbol of "good faith" in the transaction.
Home Inspection: The inspection is usually paid for by the buyer and is strongly encouraged. The home inspection give a full report on the condition of the home and generally will note any immediate repairs needed. These can then be negotiated as part of the purchase agreement if it is contingent on the inspection.
Appraisal: This is the evaluation of the property that is for sale. It is generally ordered by the buyers lender and gives the estimated value of the home. If the home does not appraise at the agreed upon purchase price, the offer may be negotiated.
Title: The rights to a property. The Title Company involved in the closing will provide you with the title report prior to the final purchase of the property.
Closing Costs: The fees at the end of a transaction that covers taxes, fees, and other lender costs. This is generally paid by the buyer, however, it can be paid by the seller or both parties
Closing: The closing is the signing of all paperwork that completes the sale of a property from the sellers to the buyers. This is also when all funds are transferred to purchase the home and many times the buyer receives the keys to their new property.
Knowing some of these terms will help make your process less stressful and easier to understand. However, if there are any other terms you have heard, or are unsure of, make sure to ask your Relator for clarification so you know what is happening during the process!
Are there any other terms or questions you have about the buying or selling process? Send us a message so we can help!