Real estate terminologies

Have you ever heard a term in real estate and you have wondered what it actually meant because it sounds foreign to you?

Here are some REAL ESTATE TERMINOLOGIES below:

1.???Appraisal

An appraisal is required to gather the estimated value of a piece of real estate. It helps real estate agents to know the exact or accurate value of a property before listing it to the market for sale or before buying a property.

An appraisal determines the fair market value of the property you would like to buy.

2. Appraisal contingency

An appraisal contingency is a clause that allows a buyer to dissolve a purchase agreement if a home’s appraised value is less than the sale price.

If the property doesn’t appraise for the amount you have agreed to pay, you can walk away from the deal with your deposit.

3.As-is

In real estate, an as-is property is the one that’s listed for sale in it’s current state, meaning that any issues or problem such as roof leakage and other problems that the home has will not be addressed by the seller, buyers can either take the home in its current state and do the repair by themselves or walk away without purchasing the property.

4. Blind offer

This is when a buyer makes an offer on a property they haven’t seen, even when it was possible to see it, that offer is considered a “blind offer”. Blind offer?is most commonly used in a highly competitive area and/or circumstance, and used as an attempt to be first and win quickly

5. Buyer’s agent/listing agent

A buyer’s agent, also known as a selling agent, is a licensed real estate professional whose job is to locate a buyer’s next property, represent their interests by negotiating on behalf of that buyer to obtain the best price and purchasing scenario for that buyer as possible.

The listing agent, also known as the seller’s agent, is a licensed real estate professional whose job is to market the seller’s property, and to represent the seller’s best interest by negotiating on behalf of the seller to secure the best price and selling scenario as possible.

6. Trust sale

A trust sale means that the home is being sold by a trustee of a living trust – and not a private party. More often than not, this is because the original homeowner has passed away, or has placed their assets in a living trust.

The trustee may not be as emotionally attached to the property as a traditional owner, which could translate to them accepting a less attractive offer as the trustee may prefer to offload the property.

7. Short sale

Short sale is when the owner sells a property less than the amount it actually worth. This usually happens when the owner is under financial stress or short behind on mortgage payment and needs to sell the property before the lender seizes it in a foreclosure.

9. Rent-back

Rent-back, or leaseback, refers to an arrangement whereby the buyer, who is now the new homeowner, agrees to allow the seller, the now-tenant, to stay in the house beyond the close of escrow.

The terms are negotiated prior to the situation occurring and will often involve a lease deposit, a daily rental rate, and a length of time allowable.

10. Escrow

Escrow is a legal arrangement which allows a third-party temporarily holds money or property until a particular condition has been met.

The escrow holder is the agent and depositary (impartial third-party) who collects the money, written instruments, documents, personal property, or other things of value to be held until the happening of specified events or the performance of described conditions, usually set forth in mutual, written instructions from the parties

?The?deal can fall out of escrow when one or both of the party involved in the deal cannot meet a particular demand.

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