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Home-buying lingo for beginners

Posted by msmrealtygroup on May 11, 2018
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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!