Buying or selling a home may seem like a long process. There’s a lot to prepare, advice to hear, and decisions to make! Now on top of all that, you have to figure out all the real-estate jargon on top of your already-full plate?? Here are 4 common Real Estate Terms (and what they mean).
DON’T WORRY- we got you covered!
Here are some common real estate terms and what they mean:
01. Financing Contingency – This means that your offer is contingent on your ability to secure financing for the house. This protects the buyer from penalties in the case they are unable to get approved for a loan.
02. Closing Costs – These are costs associated with closing and are paid at closing. Buyers costs usually cover lender fees, attorney fees, taxes, impounds, etc. Sellers costs cover listing agent and buyers agents commissions, prorated taxes, and any outstanding costs associated with the home.
There’s a lot to prepare, advice to hear, and decisions to make!
03. Due Diligence – This is the period of time a buyer has to inspect the home, and therefore discover things that may need to be repaired. If the buyer finds too many issues during this time period, they can request repairs or back out of the contract and have their earnest money refunded.
04. Earnest Money – Earnest Money is a deposit made by the Buyer during the first few days of the contract. This cost is usually about 1% of the purchase price and is held in the brokers or closing attorneys escrow account. This will be credited to the buyer at closing. If the Buyer terminates the contract outside of a contingency, Seller gets to keep this earnest money.
Interested in starting the Buying or Selling process? Or a career of your own in Real Estate? Click the highlighted links to find out more!