REAL ESTATE TERMS

Buyers Need To Know

Appraisal

Appraisal is the criteria and decision of valuing a property. An appraiser makes an educated estimate based on the previous purchase price and comparing it with recent nearby sales.

Closing Costs

These are costs buyers pay at escrow at the closing of their property that include lenders fees, prepaid interest, a share of the property taxes, transfer taxes, deed filing fees, agent commissions, commissioner, inspector, and appraiser fees, and title insurance.

Appreciation

Appreciation is the rise in value of a property based on fluctuations in the economy rather than the owners improving the home.

Mls

MLS stands for the Multiple Listing Service which digitally provides your real estate agent with information of homes currently on the market. While the public can access websites like zillow.com, MLS is the most professional and has the most current and accurate information

Home Inspection

The property is examined by a professional inspector to determine the condition of a property. This includes heating/cooling systems, plumbing, electrical, and safety.

Easrnest Money

Earnest money is a payment held in Escrow that the buyer will use as a promise to purchase the home. If the contract cannot be filled on the seller’s end, the money is refunded to the buyer. The earnest money is credited toward the final home purchase, unlike most other fees. The earnest money is refundable if the sale is cancelled during the due diligence period.

Due Diligence Period

The due diligence period lasts 14-20 days agreed upon by the buyer and seller and is the buyer’s chance to inspect the property before the final purchase offer. This includes appraisal, inspections, zoning, meeting with the HOA, and making any necessary demands or changes to the contract based on this feedback.

Recording

This is when the deed is officially recorded at the county office. The keys are exchanged with the new owners during this step.