When it comes to real estate, agents often use a language that might leave you puzzled. Here's a quick guide to common terms:
- CMA (Comparative Market Analysis): A report that helps price your home by comparing it to similar properties in the area.
- Escrow: A neutral party that holds funds and documents during a transaction to ensure both parties meet their obligations.
- Pre-Approval vs. Pre-Qualification: Pre-approval is a lender's commitment to provide a loan, while pre-qualification is a basic financial assessment.
- Earnest Money: Money given as a sign of commitment when making an offer on a property.
- Due Diligence: Research and investigation to ensure a property meets your needs.
- Contingency: Conditions that must be met for a contract to be binding, such as inspections or financing.
- Appraisal: An assessment of a property's value by a licensed appraiser.
- HOA (Homeowners Association): A governing body in planned communities or condos.
- Title Insurance: Protects against ownership disputes.
- Closing Costs: Fees to finalize a transaction.
- Fiduciary Duty: Agents' legal obligation to act in their clients' best interests.
- Pocket Listing: A property not publicly listed.
- Comps (Comparables): Similar properties used to determine a property's value.
- Seller's Market vs. Buyer's Market: Market conditions favoring either sellers (high demand) or buyers (more supply).
- Closing Disclosure (CD): A document outlining final mortgage terms.
- MLS (Multiple Listing Service): An extensive database where real estate agents list properties for sale, accessible to other agents and often the primary source for home searches.
Please note that this information is provided for general understanding. For specific details and legal advice regarding your real estate transaction, it is advisable to consult with a professional in the field. This article does not constitute legal advice.