Ever leave a doctor’s appointment more confused then when you arrived, because the doctor was speaking in medical tongues when all you wanted was a simple explanation of your shoulder pain?
Buying or selling a home can sometimes feel the same way when you are dealing with lingo you just don’t use on a day to day basis. As a real estate agent, I’ve seen the confused faces of clients when words like “escrow” and “closing costs” are thrown into the mix. That’s why I created this list of 5 real estate words to know when you are getting ready to buy or sell a home.
- Appraisal — An appraisal is a property valuation usually ordered by the lender, and conducted by a professionally licensed appraiser to determine the value of the property.
- Escrow — Escrow is when an amount of money is held by a third party until a transaction is complete. In the case of buying a home, an amount of money from the buyer is put “in escrow” while the home is being inspected. This protects both the buyer and the seller while the process is overseen by a licensed real estate agent.
- MLS — MLS stands for “Multiple Listing Service” and is a online marketing database for brokers to share their real estate listings.
- CMA — CMA stands for “Comparative market analysis” or “competitive market analysis.” When a seller is determining the price of the home, a CMA report will be created to see what other homes in the market are being valued at and the cost of homes recently sold.
- Closing Costs — When a real estate deal closes, the buyer and the seller have expenses such as mortgage fees, taxes, title insurance and brokerage commission. Closing costs vary depending on the sale and should be consulted with a real estate agent.
Have any questions about the above real estate lingo and/or want to learn more lingo? Feel free to contact me today and we can set up a time to chat!