When you’re looking into buying a home, it’s important to know basic real estate terminology. Having a grasp on the words they throw around in the real estate world will help you immensely throughout the home buying or selling process.
Before you dive in, take a look at some of the most important terms that you should know first.
Staging is a critical part of how fast a home will sell. It creates the illusion that a home looks more inviting and appealing. When a potential buyer walks into a space, the idea is to enchant them with vibrant aesthetics. Ideally, a professional stager will make your home look like it was just ripped out of the page of a magazine.
You can hire someone who specializes in anything from landed interior design to condominium interior design. Although it’s possible to stage your home yourself, most experts agree that you should leave it to a professional.
You’ll hear real estate agents throw around the term “listing” quite a bit. A listing is information about a home for sale. It includes everything from the price of the home and the size. When you look on websites at different houses for sale, these are called listings.
An appraisal is an estimated value based on comparisons with other homes in the same area. Appraisals are provided by licensed professionals who are experienced and non-biased.
Your lender will take this appraisal in order to process your loan application. If the value by the appraiser turns out to be less than the offer you’re making on a home, then you risk potentially not being approved. The bank doesn’t want to fund paying for an overpriced home. You shouldn’t want to either, for that matter.
If you’re selling your home, make sure that you get it professionally appraised before listing your selling price.
After a home is sold, you will have to pay fees called closing costs. These are typically between two and five percent of the total price of the home, not including your down payment.
Listing Agent and Buyers Agent
There are two types of agents in a home purchasing transaction. The “listing agent” is the person who represents the person selling their home, and the “buyers agent” represents the person who is buying.
Real estate agents are a vital part of buying and selling a home since it requires a considerable amount of knowledge and work. You won’t have to pay an agent; however, they will make a commission from the home seller.
A mortgage is a loan that you are given to pay off your home with an attached interest rate. You will either be approved for an adjustable or a fixed rate. Depending on your particular circumstances, one may work better for you over the other.