Zack Childress-The real estate industry is a vast one and it is the critical driver of economic growth. The market being very much intricate, it is imperative to know certain real estate terms in detail that will help to have a clear idea of things.
Following are a list of certain real estate terms explained.
Title insurance is a type of insurance policy that protects the lender or the buyer for their respective policies which includes lender’s policy and owner’s policy against any type of loss happening over possession of a property.
2.Buyer’s Agent vs. Listing Agent
Traditionally, all real estate agents involved in a real estate deal lawfully stand for the seller i.e. the listing agent and the selling agent. When a buyer’s agent is implicated, the individual buying the property is represented by the selling agent, who is known as the buyer’s agent.
3.Fixed Rate vs. Adjustable Rates Mortgages
Fixed mortgage rate is a credit with an interest rate and monthly sum that continues to be the same and cannot vary over the life of the loan. On the other hand, an adjustable mortgage rate of the loan is not the same and it may go down or up which is generally determined by an economic indicator and a time period.
A pre-approval letter is a written statement from a lender stating the lender’s prelude determination that a borrower would meet the requirements for a particular loan amount under that lender’s procedure. The loan amount is based on credit information and income.
This term is used by brokers to market a real estate. When a property is ready for sale, a listing has to be created and sometimes it also includes other items inside the house or land that you wanted to market say furniture or other things that you want to be sold with the home can also be added to this listing and this is displayed in a realty magazine or in a real estate marketing website.
Inspection is an examination or scrutiny done by a third party for a statement of condition on the property.
Determining the value of the property for a specific period of time is an appraisal. Mortgage companies generally oblige an appraisal of the property by a licensed, unbiased party before settling to loan money on the property. Comparable sales in the area, the cost approach, the income approach, or the highest and best use of the property are few of the factors that help in determining the appraisal value of the property.
Contingency is a condition or a stipulation that must be met before the signing of a contract that is legally binding. It should be met before the sale reaches the final stage. If the condition is not met, this contingency will provide a way out from reaching the final process.
9.Offers and Contracts
Often there is a misconception about the term offer and contracts and people deem it as one and same, but it’s not. When a written promise is made by a buyer to purchase real estate it is known as an offer. However, this offers does not become a contract when all terms are accepted by both the parties i.e. the seller and the buyer. On the other hand, a legally binding agreement between two parties is known as a contract. Unlike any other industry, in real estate it is highly important to have everything in writing for the protection of the parties involved mainly the buyer and the seller. In general, buyers, after seeing a property and analyzing it in and out, decides to buy it and an agent will help the buyer construct an offer.
Expenses incurred during the purchase and sale of a property paid at the time of closing or at the settlement time is known as a closing cost. Title insurance, attorney fees, appraisal fees, recording fees, and taxes are some of the examples of closing cost.
As aforesaid, real estate is a big industry and there are countless real estate terms used, listed are some of them and you can have a very thoughtful insight into the concept if you visit Zack Childress real estate reviews, his scam tips are yet another useful concept that helps any person who has just entered into the real estate industry.