Are you hoping to be as prepped as possible when you buy or sell your next home? A great way to show others you know what your talking about is to brush up on the language of real estate.
In this guide, we will outline some real estate terminology that can help keep you prepared. Be as successful as possible in the selling or buying process by keeping these terms in your back pocket.
When homes are marked with this indicator, it typically means that the home is on sale as-is. This means that the seller will not be repairing or updating anything before selling the home. This may cause such a home to be priced lower than others in the market.
A home that is on the market as-is refers to the condition of the home at the time the offer was written. For this reason, if the home happens to have additional damages that occur after the offer was written, the home is no longer as-is. If the house has been altered in any way between the offer and the closing, the repairs will need to be made at the cost of the seller.
Days on Market (DOM)
This term is used to refer to the number of days from the property listing date to the date the property is purchased and signed off by a buyer. The listings will typically be posted on the real estate agents' multiple listing services. This helps others get an idea of the average DOM homes are taking in certain locations, certain time periods, or seasons.
The lower the average DOM, the stronger the market, making it a good time for sellers, whereas a higher DOM favors buyers. Homes typically sell at a lower DOM during spring versus winter as it's an easier and more comfortable time to move.
This term refers to the investment a homeowner has on their home. In order to calculate equity, one will take the market value of the home and subtract the mortgage. Equity is the amount that is leftover.
Building equity is important for homeowners, as they can use this financial asset as leverage. This assists in qualifying for loans that can help pay off high-interest rates or home repairs.
This disclosure is made by the seller and includes important information about the property to the best of the sellers knowledge. This should include any issues such as pest issues, certain noises, or activity that could cause disruption as well as property line disputes. Recent deaths on the property should also be addressed.
Real Estate Terminology You Should Know
Whether you are buying or selling a home, these are key real estate terms you should familiarize yourself with. Make sure that you're as prepared as possible to make great real estate decisions by being equipped with this important real estate terminology. Educate yourself on the ins and outs of real estate to feel more confident in this field.
Are you looking for a professional real estate agent that can help you sell your home? Or are you looking to buy a home? Contact us today for assistance.