When you begin the home buying process, there are going to be some words you need to know. The real estate transaction will require you to learn what things me fast and sometimes on the spot. Having a general understanding of important real estate terms before you start the homebuying process will reduce the stress.
Below is a list of common terms you are going to need to know at the beginning of the process.
The realtor who represents the person buying the property. Their responsibility is to serve your interest. Take a look at what buyer services look like.
The realtor who represents the interest of the home seller.
Real estate agents will most likely refer to homes for sale as “listings.” A listing on a website like Zillow etc. shows information about the home, like the price and number of bedrooms.
This means a listing is still currently for sale. You are able to view an active listing
A listing that has a current contract on it from a homebuyer will be called pending. When searching homes, so properties may have the word pending next to it. When homes are pending the sale isn't complete but another buyer has the legal rights to the home.
When you finally find that home you love, you have to put an offer on it. The offer is based is the beginning of the contract relationship. It is just the amount you are willing to pay. The offer is submitted to the home seller and they determine if an offer is accepted or not. There are often time restrictions on the time a home buyer has to make the accept your offer or not.
Your offer was accepted and everyone is at work to make the sell legal. Both the home seller and home buyer have key task that must be completed in order for the sale to be finalized. Often this is where certain contingencies are made and agreed upon. A house is under contract when everyone agrees on initial terms.
When you put in an offer on a home, you can specify certain conditions that must be met before the deal is completed. Keep in mind a deal is only completed after every contract requirements are met. Key contingencies are you getting financing or a loan (if needed) , home inspection repairs and that the appraised value is you’re offering to pay. These are just a few common examples; your specific contract will list the actual task.
After you’ve made an offer on a home, you’ll need to schedule an inspection, which costs around $500,this cost is based on the specifc inspector and the size of your home. The inspector will go through every inch of the home and review things like the plumbing, electrical, foundation, walls, heating, and appliances. They will provide you with a detailed report with suggestion and insight on the condition of the home.