Buying or selling real estate can be more arduous, especially if you are not familiar with the terminology used in the industry. It is essential to have a basic understanding of the general real estate terms to ensure that you make informed decisions when entering the market.
Appraisal
An appraisal is an estimate of a property’s value conducted by a professional appraiser. Various factors, such as location, condition, size, and property features, determine the home’s worth. The lenders require an appraisal before they can approve a mortgage.
Closing costs
Closing costs are the fees and expenses paid for finalizing a real estate transaction. These costs typically include loan origination, title search, appraisal, and attorney fees. Don’t forget the closing costs when budgeting for your real estate transaction.
Escrow
Escrow is a process where a neutral third party holds funds and documents related to a real estate transaction until the deal’s completion. The escrow agent ensures that all parties fulfil their obligations and that the transaction is closed smoothly.
Home inspection
A home inspection is a detailed property evaluation by a professional inspector. The examination includes checking for structural issues, plumbing problems, electrical faults, and other defects that may affect the property’s value.
Multiple listing services (MLS)
The MLS refer to a database of properties listed for sale by real estate agents. The MLS provides a centralized platform where buyers and agents can search for properties based on their preferences. Properties listed on the MLS are usually more visible and receive more exposure.
Real estate agent
A real estate agent is a trained professional working with buyers or sellers in real estate transactions. The agent helps clients navigate the complex process of buying or selling property and guides pricing, negotiating, and closing the deal.
Title
The title refers to a legal document that proves ownership of a property. It includes information about the property’s location, size, and any liens or encumbrances on the property. A title search is conducted before the transaction is closed to ensure that the seller has a clear title to the property.
If you are familiar with these terms, you can perform most of the real estate work yourself without the need for hiring a real estate agent. If you require assistance selling your house, visit https://www.homebuyingguys.com/flower-mound-texas/ for more details.
