Home Buying Lingo – Key Real Estate Terms You Should Know – Part 1

Buying your dream home can be one of the biggest decisions that you will make in your life.  You want everything to be perfect right down to the smallest detail.  The process of home buying can be stressful at times and perhaps even convoluted.  As your premier agent specializing in Vernon real estate, I would like to share the following key terms that will help you better understand the language attached to buying a home and allow you to be an active agent throughout the process.

Key Real Estate Terms

Appraisal – A thoroughly documented opinion on the value of a property that is based on criteria such as comparable homes in the surrounding area.

Buyers’ Market – A real estate market condition that exists when the number of homes that are available for sale outnumber the number of prospective buyers.  Typically, this type of market sees homes sit for longer periods of time and thus home prices tend to drop.

Closing – A final meeting where the ownership of the home is transferred from seller to buyer.  This meeting is usually attended by the buyer, seller and both real estate agents.

Closing Costs – Fees associated with the purchase of a home that are due at the end of the closing transaction.  These fees can include appraisals, home inspections, lawyer’s fees, title searches etc.  Buyer’s should budget an additional 1% – 3% of the home’s purchase price.

Days on Market – The number of days that a property has been listed on the real estate market.

Down Payment – The portion of a home’s purchase price that a buyer must pay.  This portion is not part of the buyer’s mortgage.

Equity – The percentage of the property’s value that is owned by the owner (the lender owns the remainder).

Escrow – A specific period (30 days or longer) after a buyer has made an offer that the seller has accepted.  During this time frame, the house is inspected, appraised, title searches are done, and liens are taken off.

Foreclosure – A property that has been repossessed by a bank because the owner has been unable to make their mortgage payments.

Gentrification – A rehabilitation and renewal process that occurs in an urban area where demographics change.  Gentrified areas typically see an increase in rent and property value.

These key real estate terms should help you gain a better grasp on buying a home.  If you have any questions about these definitions or would like more clarification, don’t hesitate to call – I would love to help you find your perfect home.  Contact me today to see some of the new and exciting real estate options that are available in the Vernon area and see which one is right for you.  I look forward to hearing from you soon.

 

 

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