Buying a home means entering a new world filled with what may be unfamiliar terms. Here’s a short cheat sheet to help you increase your real estate vocabulary.
Appraisal: Estimated value of a property, conducted by a licensed residential real estate appraiser.
Comparative market analysis: A study of comparable homes to determine a reasonable asking price for a property.
HOA: A homeowners association is an organization that determines the rules and standards of a community.
Due diligence: Actions, such as a title search, that responsible buyers take in order to protect their real estate investment.
Earnest money: A deposit made to a seller that demonstrates the buyer’s good faith and is applied toward the down payment at closing.
Title: A term referring to the ownership rights and possession of a property.
Contingencies: A condition or action, such as a home inspection, that must be met for the real estate contract to become binding.
Escrow account: Where earnest money is held by a third-party, such as a title company or bank, until the closing.
Any other terms tripping you up? Reach out, let’s talk!