It is very hard for some beginners in the real estate industry to know the vocabulary used in real estate transactions. However, by persistent study to get extra-ordinary knowledge, you can master the real estate vocabulary. In this blog, you can learn new words related to real estate.
We have collected some known words widely used in property transactions.
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In a fixed-rate mortgage, the interest ratio stays the same for a longer duration. These loans are given for more than ten years.
In contrast to Fixed-rate, Adjustable-rate mortgage is changing throughout the loan.
In the era of the internet, most of the interest takers in real estate get the services of ibuyer. It is a company that uses technology for closing real estate deals quickly and efficiently. They take all the responsibility of owning, marketing, and reselling. In short, ibuyer takes the burden from a day of your property listing till the closing of the deal. You have to pay a certain amount according to the services you choose.
The term is used when a professional inspector visits a home and estimates its value. They will also examine the home whether it needs some repairing work. Then, the buyer can ask the seller to either repair the home or pay the amount for repairing it to the buyers. The seller may also reduce the home price in case of founding damages in the property.
Commonly, when you buy a home, you also become the landowner on which the land is built. But sometimes, the land on which the home is built is under lease, and then after paying the amount in rents, the land becomes lease-free.
It is a database where real estate agents and brokers can access and update information about the property for sale in an area. It is helpful for both the buyer agent and seller agent. After a home is uploaded on MLS, the buyer agents visit the platform to find a home and compare that with other available options.
Natural Hazzard Disclosure report is given to the escrow holder by the seller at the time of home selling. Sellers mention the threats of the natural hazards to which the home is vulnerable in a specific area.
When a homeowner passes away without writing a will or leaving property to someone else, the sale of that home is called a probate sale. The probate sale court asks the other representative from the same family to hire a real estate agent for selling the home. However, probate sale takes more time in closing.
A purchase and sale agreement is a written agreement between seller and buyer at the deal. Both parties sign the contract and make it a formal deal.
A person who has an active license in real estate is called a realtor. Both real estate agents and realtors are used interchangeably.
After closing a deal, the buyer pays some amount to the seller as a down payment. The leftover amount is called cash reserves.
The amount you take as a mortgage, the lender, does not give loans without any benefits. So, you have to give some extra amount monthly or yearly as a benefit. That extra amount is called interest.
Seller concession is the amount reduction in the price of a property from the seller side to increase the probability of property selling.
There are countless words included in real estate vocabulary, so if you have to learn more about the words used in real estate, contact sigma properties.
Muhammad Junaid is a senior Analyst and Search Engine Expert. Extensive experience being a lead writer in Rudn Enclave. Work for years with local and international enterprises. Also, represent well-known brands in the UAE.