Real Estate Jargon Revealed
For me, discussing Real Estate, and the endless possibilities if offers comes as second nature. I’m passionate about the subject and have been a professional in this industry for an extensive period of time. At some point this industry touches almost everyone’s life in one way or another; however, for many the terminology that is used can sometimes seem confusing and restricting. Here I aim to clear up some of the jargon that surround real estate, and clarify some of the ideas and procedures.
Appraisal: The act of estimating the market value of a property.
Appreciation: The increase in value in a home from when the home was first purchased.
Balanced Market: A market condition is where the demand for property equals the supply of available properties for sale. There are typically a good number of homes available to choose from at fair and stable prices.
Buyer’s Market: A market condition where there are a higher number of homes to choose from, than buyers able to purchase. Houses will typically remain un-sold for longer periods and tend to sell at a lower price, allowing for increased negotiating leverage for buyers.
Closing Costs: Costs, in addition to the purchase price of the property, such as legal fees, transfer fees and disbursements. Closing costs typically range from 2% - 4% of a property’s selling price and are payable on the closing day.
Closing Date: The date in which the sale of a property becomes final.
Conditional Offer: An Offer to Purchase that is subject to specified conditions, for example, on approved financing or upon an approved home inspection. Conditional offers typically have a stipulated time limit within which the specified conditions must be met.
Condominium Fees or Strata: Payments made by owners of condominiums or townhouses to the property management of a complex that is allocated to pay expenses, such as maintenance, repairs and management costs.
Contract of Purchase and Sale: A written contract detailing the terms under which the buyer agrees to buy. If accepted by the seller, it forms a legally binding contract subject to the terms and conditions stated in the document.
Counteroffer: When an original offer to the seller is not accepted, the seller may counteroffer.
Depreciation: The decrease in value in a home from when the home was first purchased.
Easement: A right acquired for access to or over another person's land for a specific purpose, such as a driveway or public utilities.
Equity: The difference between the price for which a property could be sold and the total debts registered against the property.
Listing: A written agreement between a property owner and a real estate representative authorizing the agency to offer the owner's real property for sale.
Real Estate Broker: A brokerage that represents a principal in a real estate trade.
Seller's Market: A market condition where there are a higher number of buyers than homes available to purchase. Houses will typically sell faster and at a higher price.
Strata or Condominium Fees: Payments made by owners of condominiums or townhouses to the property management of a complex that is allocated to pay expenses such as maintenance, repairs and management costs.
Survey: A document that shows the property boundaries and measurements, specifies the location of buildings on the property, and indicates any easements or encroachments.
Tenant: An individual who occupies land or tenement under a landlord.
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