Buying a home for the first time can be daunting, and when it comes to buying a home, there may be a lot of terms or phrases you’ve not heard before. Here is a list of common home buyer terms you may come across in your home buying journey.
Comparative Market Analysis
Research of prices of similar properties in the same area that were recently sold to help determine a reasonable sales price of a property. This is used when selling a home and when determining a offering price when purchasing a home.
An agreement between a buyer and a seller to purchase real estate. Also known as a sales contract.
Offer on a home has been accepted, but finalized sale is dependent upon certain criteria. Typically appraisal, home inspection, or mortgage approval.
Fees paid at the end of a transaction either by the seller, buyer, or both. They include the taxes, insurance, and other lender expenses.
Deposit made to a seller showing the buyer’s good faith in a transaction. Typically held in a trust or escrow account.
Examination of the property’s condition. Usually performed by a qualified home inspector of your choice.
A bundle of rights in a piece of property. A Title Company will provide you with the preliminary title report for you to review before accepting the property.
Property and/or land valuation completed by an appraiser who determines the market value. This process can take 2-4+ weeks.
Scheduled closing as soon as you receive the okay from your lender. This is when you’ll be signing for the property.