While on the hunt for your dream home, it’s likely you’ll come across some real estate terms you’re not familiar with. Use this guide to navigate the complex world of real estate jargon to make informed decisions with fluency and ease. This is part of our Real Estate Chat series where we demystify some commonly used real estate terms for you.
Appraisal
An unbiased assessment of a property’s value conducted by a professional appraiser. Lenders require an appraisal to ensure the property’s value supports the loan amount.
Closing Costs
Fees associated with the purchase of a home that are due at the end of the sale transaction.
Comps
Comparable homes in a given area that have sold within the past several months that a real estate agent uses to determine a home’s value.
Equity
A percentage of the home’s value owned by the homeowner.
Seller Concessions
Items that the seller agrees to pay for on behalf of the buyer. These can include covering closing costs, or a stipemd for a major expense, like carpet replacement.
Contingencies
Conditions written into a home purchase contract that protect the buyer should issues arise.
From: California Association of Realtors – car.org
Sources: Zillow.com, Patch.com, MSN.com
