Selling a home is a significant event that involves numerous steps, legalities, and jargon that can be quite overwhelming for the uninitiated. To ensure a smooth transaction and to empower yourself as a seller, it’s vital to familiarize yourself with the key terms used in the real estate market. Here’s a list of terms every home seller should know to navigate the sales process with confidence and clarity.
Comparative Market Analysis (CMA)
A Comparative Market Analysis is an evaluation of similar properties in the same area that have recently sold, are currently on the market, or were on the market and failed to sell. A CMA helps you price your home competitively by giving insight into how your home compares to others in terms of price, size, amenities, and conditions.
Listing Agreement
This is a contract between a homeowner and a real estate agent, detailing the conditions under which the agent will sell the home. It includes the duration of the agreement, the listing price, the agent’s commission, and other terms of the arrangement.
Asking Price
The asking price is the amount of money a seller requests when listing their property for sale. It can differ from the final sale price after negotiations and is often strategically set based on a CMA.
Offer
An offer is a formal proposal made by a potential buyer to purchase your home. It includes the offered price and may contain contingencies, which are conditions that must be met for the sale to proceed.
Contingencies
Contingencies refer to specific conditions outlined in an offer or a purchase agreement that must be fulfilled before a real estate transaction can be completed. Common contingencies include home inspections, appraisal, financing, and the sale of the buyer’s current home.
Escrow
Escrow is a neutral third party or account that holds funds in trust until all parts of a real estate transaction are complete. This process ensures that the buyer’s earnest money is safeguarded while purchase conditions are met.
Earnest Money
Earnest money is a deposit made by a buyer to demonstrate their seriousness about purchasing the home. It’s held in escrow until the closing and usually counts towards the down payment or closing costs.
Closing Costs
Closing costs are expenses, over and above the price of the property, incurred by buyers and sellers in transferring ownership of a property. These may include fees for attorneys, title search, escrow, home appraisal, and more.
Disclosure Statements
Sellers are usually required by law to provide disclosure statements, which reveal any known issues with the property that could affect its value or desirability. This might include past damages, presence of hazardous materials, or other significant flaws.
Title Insurance
Title insurance protects real estate owners and lenders against any property loss or damage they might experience due to liens, encumbrances, or defects in the title to the property.
Home Warranty
A home warranty is a service contract that covers the repair or replacement of home systems and appliances that break down over time. Offering one can sometimes enhance the attractiveness of the property.
Understanding these terms will equip you with the knowledge needed to engage in real estate transactions more confidently and effectively. Remember, always consult with professionals like real estate agents, attorneys, and financial advisors to guide you through the intricacies of selling your home.
Armed with the right information, you can look forward to a successful and stress-free home sale. If you’re preparing to put your house on the market, take the time to learn the lingo—it’s one of the first steps toward real estate success!
Would you like to delve deeper into any of these terms, or do you need assistance with another aspect of home selling?
ABOUT CJ REAL ESTATE: CJ Real Estate is a full-service brokerage helping people across Oklahoma, Arkansas, Missouri and Kansas buy and sell residential, lake, land, ranch and commercial real estate with confidence.
MEDIA CONTACT:
Ronn Cunningham
1.918.550.8122
Info@CJ-RE.com
SOURCE: Cunningham-Johnson Real Estate