Buying a home is already a complicated enough procedure, so before making your first move, why not speak the real estate language like a pro? As your premier agent specializing in the Springfarm Yorkhill real estate market, I would like to provide you with the following key real estate terms to make your home buying experience easier and less complicated.
Key Real Estate Terms
Appraisal – An informed and impartial value of a home. This figure is derived from data such as the price of comparable homes in and around the neighbourhood, the overall strength of the real estate market and any unique selling features of the home.
Buyer’s market – A real estate market that is created when homes for sale outnumber potential buyers. Traditionally, this market sees a larger inventory of homes that sit on the market and thus housing prices drop.
Closing – The final procedure where ownership is transferred from seller to buyer. Closing is usually attended by the buyer, the seller and both real estate agents.
Closing costs – Fees attached to the purchase of a home that are due at the end of the sales transaction. These fees can include appraisals, home inspections, title searches, as well as lawyer fees. When purchasing a home, be sure to include an extra 1 %– 3 % of the home’s purchase price to cover these costs.
Days on the market (DOM) – The overall number of days on the real estate market that a property has been listed.
Down payment – A percentage or portion of the home’s purchase price that a buyer must pay (this is not part of your mortgage).
Foreclosure – A property that has been repossessed by the bank due to the owner’s inability to cover the mortgage payments.
Gentrification – The process of changing the demographics of a certain area through renovations and property development. Typically, in gentrified areas, rents and property values increase.
Home inspection – A visual look at the various systems of a home or building to see if there are any hidden damages or defects. This inspection is secured and paid for by the buyer.
Homeowner’s insurance – A policy that protects the structure of a home, the homeowners’ contents and covers any injury to others should damages occur while on the property.
These important real estate terms will not only help you better understand the language associated with buying a home, but will also make the entire purchasing experience less convoluted and clearer. If you have any questions about these terms or would like more clarification around the home buying process, please contact me today. I would love to show you some of the new and exciting real estate opportunities that are available in the Springfarm Yorkhill area and help you find your perfect home.
I look forward to hearing from you soon.