ABCs of Real Estate: A TO M REAL ESTATE TERMS

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Real Estate

Let's start the year by getting back to some of the basics of Real Estate. Whether you are a home buyer or seller, knowing some basic terminologies is essential help while in the process of buying or selling. 

This blog post will go over some of the main terms from A to M. So, let's get ready to learn some new terms.

LETTERS A TO M 

A is for Appraisal: "An Appraisal determines the home's value to ensure that the price reflects the home's condition, age, location, and features such as the number of bathrooms. Also, appraisals help banks and lenders avoid loaning more money to the borrower than the house is worth." 

 

B is for Buyers Agent: "A Buyer's agent is a real estate professional who guides a buyer through the process of purchasing a home."

 

C is for Closing Cost: "A Closing Cost is fees associated with your home purchase that are paid at the closing of a real estate transaction."

 

D is for Down Payment: "A Down Payment is a percentage of your home's purchase price that you pay upfront when you close your home loan.

 

E is for Escrow Agent: "An Escrow Agent is a neutral third-party entity who holds onto the funds and assets related to the transaction until both parties have satisfied their contractual obligations and the sale can be closed on."

 

F is for FSBO: "A For Sale By Owner homes are sold by the homeowner without the help of a listing agent."

 

G is for Gross Income: "A Gross Income is used by lenders or landlords to determine whether an individual is a worthy borrower."

 

H is for Homeowners Association: "A Homeowner Association is an organization that makes and enforces rules and guidelines for a subdivision, planned community, or condominium building.

 

I is for Inspection: An Inspection happens when buyers pay a licensed professional inspector to visit the home and prepare a report on its condition and any needed repairs.

 

J is for Jumbo Loan: "A Jumbo Loan, also known as a jumbo mortgage, is a type of financing that exceeds the limits set by the Federal Housing Finance Agency."

 

K is for Kick-out Clause: "A Kick-out Clause is a provision in a home's sales contract that allows sellers to accept an offer with a contingency while still showing their home in hopes of receiving a non-contingent offer."

 

L is for Lender: "A Lender is a person or party who loans out money; it is usually a bank, credit union, or corporate entity."

 

M is for Market Value: "Market value refers to the actual value of your property when placed at sale on the open market. It's determined by buyers and defined as the amount they are willing to pay for purchasing the home."

 

You are now one step closer in your home buying and selling journey! We will have a follow-up with terms from N to Z to end this mini blog series. Should we make this into a Youtube series with our agents? Let us know! 

 

LATEST YOUTUBE VIDEO 

 

Did we miss something? You may send us an email at maverickhomegroup@gmail.com.

 

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