Real estate lingo that buyers and sellers need to know

Whether you’re in the process of buying or selling a home now, or plan to in the future, the world of real estate is most likely something you’ll need to be familiar. While your agent is always there to help translate, we outlined some of the commonly used real estate lingo that may prove helpful in your next experience.

Acceptance

The acceptance is an agreement on the terms of an offer, which then creates a contract. When a seller accepts and signs on your offer, all parties are entered into a contract for the sale.

Multiple Listing Service (MLS)

A multiple listing service is utilized by licensed real estate agents to sell homes for their clients. Through the MLS, agents have access to useful data, as well as seller disclosures and HOA (Homeowners Association) regulations. Agents create listings with the necessary home details, such as number of bedrooms and notable features, and monitor the listing on their client’s behalf.

Conveys with sale

These are items that are included in the price of the home at no extra cost. Conveys with sale can be appliances, decorations or any other items that the seller wishes to leave behind.

Contingency

Contingencies are conditions that are included in the purchase contract for a home to protect the buyer in the event that any issues arise with financing or inspections.

Appreciation/ Depreciation

Appreciation refers to the amount of money that a specific home has gained in value over a defined time. Just the opposite, depreciation refers to the amount a home has lost in value over a specific time.

Fixture / Personal Property

A fixture is anything that is permanently attached to or is part of a property. Personal property is technically any item that can be moved. It’s easy for buyers and sellers to dispute over these items, due to the subjective nature of what is considered a fixture and what is considered personal property.

Appraisal

An appraisal is one of the more commonly used terms, and refers to the process of developing an opinion of value for a property. An appraiser will inspect the home, gather history and produce a report. In most cases, these reports can then be used to determine the home’s starting sale price.

Staging

Home staging is simply preparing a home for sale. The goal of staging is usually to make your home appealing to potential buyers. Home staging is necessary for open houses and listing photographs.

Buyer’s or seller’s market

A buyer’s market means that there are more sellers in the market than buyers, which usually causes difficulty for sellers and lower home prices. In a seller’s market, there are more buyers than sellers. This can lead to low inventory and higher home prices.

Comps

Comps, or comparables, refer to the contrast criteria from recently sold properties in a certain area. Agents and sellers can use these comparable home sales to determine a listing price and prepare market analyses.

If you need more information about ARC Realty, or if you would like to speak with an ARC agent, contact us at (205) 969-8910.