Essential Real Estate Terms You Should Know

Learning some of the initial and crucial real estate terms can make buying and selling a house easier. Real estate terms are not only helpful while buying the house; they are also very helpful when you are negotiating in terms of the house pricing and its overall features.

If you are someone who is interested in buying a house any time soon, then you should learn these real estate terms and their meanings so that you have a better understanding of conversations with your real estate agent. 

Contract

Legal contract through which the buying and selling process is authorized.

Buyers and Listing Agents

Buyers agents are people who offer to buy goods based on behalf of another party.

Closing

when the process of home dealing is final and closed. 

Debt-to-income ratio

The amount that buyers are willing to pay in the future if the process is a mortgage.

Earnest money

The amount paid by the buyer to the seller once the agreement is final.

Contingencies

These are the “must” requirements in the purchase contract which should be fulfilled at any cost in order to make the purchase valid for the other party.

Appraisals

Used for estimating the real value of the property against the asking price by the real estate agent or seller.

Due diligence

The process of understanding the legal processes involved in the process and deciding on them before the final decision is made and agreed upon by all parties.

Escrow

The third-party who is involved in the transaction and ensures that it is transparent and smooth from both ends.

Seller concession

The discounts offered by the sellers.

Title search

An examination of the public records of both parties.

Principle

The party who is responsible for making the final offer.

MLS

The information access point for buyers and sellers.

Inspection

The professional inspection procedure.