Real Estate Terms From Appraisals to Comps
Below is a MRR and PLR article in category Finance -> subcategory Real Estate.
Real Estate Terms: From Appraisals to Comps
Summary
When selling your home or property independently, it's not necessary to master the entire process. However, understanding key real estate terms can be incredibly beneficial.
Key Real Estate Terms
1. Acceptance
This legal term refers to the seller's acceptance of a buyer's offer. It often follows several counteroffers between the parties.
2. Appraisal
An appraisal is a professional assessment of a property's value. Strict regulations dictate who qualifies as an appraiser. Lenders typically require the property to appraise for at least the purchase price, sometimes even in all-cash transactions.
3. Bridge Loan
This is a short-term loan used to cover the gap between selling a home and purchasing a new one. Known as panic loans, they are crucial if escrow is delayed on the home sale while you are committed to buying another.
4. Coinciding Settlements
When a buyer relies on funds from selling their current home to purchase a new one, the settlement of the sale can be a contingency for the purchase. While sales generally happen back-to-back, funds from the first sale are often wire-transferred to the second.
5. Closing
The closing process can vary by state but generally involves exchanging necessary documents, executing agreements, and transferring funds to complete the real estate transaction.
6. Comps
Comps refer to the sale prices of similar properties in the area and help determine a property's fair market value.
7. Conditions
These are any requirements that must be fulfilled before a sale is finalized. Common conditions include the property appraising at or above the purchase price, passing a home inspection, or securing loan approval for the buyer.
Understanding these terms can greatly enhance your real estate journey. Stay tuned for our next article, where we'll explore more terms, starting with "Condominium."
You can find the original non-AI version of this article here: Real Estate Terms From Appraisals to Comps.
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