When selling a home, clear understanding between the seller and the buyer is key towards facilitating smooth negotiations. But what if there are terms used that seem vague? Here are some of the common selling terms that you should learn ad understand if you’re off to selling your house.
- Acceptance: This means that both parties have agreed to the terms of an offer beginning at the time when seller signs his name to the buyers offer. It creates a contact to which the seller cannot withdraw without facing lawsuits. In case the buyer withdraws, his earnest money is forfeited.
- Appraisal: In real estate, this term is used to refer to the process of determining the amount of a certain property like a house, a condo, or an estate. The value of a property is usually required by lenders to determine whether they will grant or turn down a borrower.
- Appreciation: The instance when a property accumulates value over time due to economic factors. This does not apply to increase in value due to improvements.
- Closing Costs: The costs involved in settling a property sale except its real price.
- Common Area: Facilities or amenities shared by residents of condominiums, apartments, or cooperative houses. They may include laundry rooms, recreation facilities, courtyards, and parking areas.
- Counteroffer: In real estate, it is making another offer to void the initial offer made by the other party. For instance, a $1 million offer by the buyer will become void should the seller wanted $1.2 million for his property.
- Depreciation: Opposite appreciation, it is the instance when a property reduces value over time due to external economic conditions but also includes natural wear and tear, age of property, and damages.
- Disclosure: Revelation of facts previously unknown such material defects, stigmas, or legal claims affecting a property. Different states may impose differences in disclosure laws on real estate.
- Earnest money deposit: Abbreviated as EMD. It is partial payment signifying intent or commitment to the purchase of the property. Both parties usually agree to settle remaining amount on closing date.
- Fixture: Features attached to a house like wall carpets, lightings, or built-in appliances. Depending on the terms of the property sale, these fixtures may or may not become properties of the new home owner.
- Title: Document, usually a deed or certificate showing a person’s legal ownership of a property.
- walk-through: Final inspection of the house to search for other problems before change of ownership takes effect.
These are just some of the most common home-selling terminologies that you might encounter when selling your home or when you’re buying your new space. Regardless of which side you’re in, local real estate agents are ready to explain vague terms for you.