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As with many industries, real estate has its own “language.” When real estate phrases and terms are used in conversation or data sets, they may be hard to decipher from context alone. In addition, when an agent puts information about a listing into the MLS , they’re only allowed a certain number of characters, so sometimes this shorthand ...
Mar 20, 2023 · 26. Equity. A percentage of the home’s value owned by the homeowner. 27. Escalation clause. A clause or addendum to a real estate contract or offer that states a buyer is willing to raise his or her offer price to a predetermined amount if the seller receives a higher competing offer for the property.
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- Acceleration Clause
- Active Contingent
- Addendum
- Adjustable-Rate Mortgage
- Adjustment Date
- Amortization
- Appraisal
- Appreciation
- Assessed Value
- Assignment
Also known as an acceleration covenant, this is a contract provision requiring the borrower to repay all of their outstanding loan to a lender if certain requirements -- outlined by the lender -- aren’t met.
When a seller accepts an offer from a buyer, that offer is contingentupon the buyer’s ability to meet certain conditions before finalization of the sale. Contingencies might include the buyer selling their home, receiving mortgage approval, or reaching an agreement with the seller on the home inspection.
If a buyer or seller want to change an existing contract, they might add an addendum outlining the specific part of the contract they’d like to adjust and the parameters of that change. The rest of the contract stays the same, regardless of the addendum.
The interest rate for an adjustable-rate mortgagechanges periodically. You might start with lower monthly payments than you would with a fixed-rate mortgage, but fluctuating interest rates will likely make those monthly payments rise in the future.
This is the date your mortgage begins to accrue interest (though you might not have made a mortgage payment yet). The adjustment dateusually falls on the first day of the month after mortgage funds are advanced or dispersed to the borrower.
Amortizationis the schedule of your mortgage payments spread out over time. In real estate, a buyer's amortization schedule is usually one monthly payment scheduled over a 15- or 30-year period of time.
An appraisal on your home is an unbiased estimate of how much a home is worth. When buying a home, the lender requires an appraisal by a third party (the appraiser) to make sure the loan amount requested is accurate. If the home’s appraised value is below what the buyer has offered, the lender may request the buyer pay the difference in cost.
Appreciation is the amount a home increases in value over time. To calculatea home’s likely appreciation rate, add one to the annual appreciation rate, raise this to a power equal to the number of years you’d like to estimate, then multiply that by the current value of the property.
An assessmentis used to determine how much in taxes the owner of a property will pay. An assessor calculates the assessment of a home’s value by looking at comparable homes in your area and reviewing an inspection of the home in question.
An assignment is when the seller of a property signs over rights and obligations to that property to the buyer before the official closing.
Nov 13, 2023 · A Realtor is a real estate agent who is a dues-paying member of the National Association of Realtors. NAR members are held to a high standard of professionalism and adhere to a strict code of ethics. Refinance. If a borrower takes out a new loan on the same property, it’s called a refinance.
Get started with common real estate terminology every investor should know: Appraisal: The appraisal is an independent survey conducted by a lender to determine a property’s value, based on its condition and comparable listings. This process helps validate the agreed upon purchase price between a buyer and seller.
Nov 10, 2014 · A coordinator will ask a few questions about your home buying or selling needs. You’ll be introduced to an agent from our real estate professional network. To connect right away, call (855) 650 ...
Jun 15, 2018 · The real estate world has its own set of terms that apply to buying and selling properties. Understanding the language of real estate is a must for any buyer or seller. The following list of commonly used terms by Realtors, Lenders, and Inspectors are important to understand.
