If you’re in the market to buy or sell your property, there are many terms that will come up during the process that might sound foreign or confusing to you. If you familiarize yourself with some of the common real estate terms you will come across, it will help the whole process go smoother. Below are some terms you will need to know.
MLS (Multiple Listing Service) – An organization that collects, compiles and distributes information about properties listed by their members. MLS’s are only local and regional. They cannot be national.
Closing Costs – Entire package of miscellaneous expenses paid by the buyer and seller when the transaction closes.
CMA (Comparative Market Analysis) – A report that shows prices of properties that are comparable to your property and those recently sold, currently on the market or were recently on the market.
PITI (Principle, interest, taxes and insurance) – These are the four monthly components of a monthly mortgage. You’ll need to know these to know what your monthly payment will be.
Contingency – A provision of an agreement that keeps it from being legally binding until a certain condition is met. For example: a buyer’s right to get a home inspection before purchasing the home.
Title insurance – Insurance that protects the lender’s or owner’s in real property from unexpected or fraudulent claims of ownership. A buyer normally pays for the lender’s title insurance policy.
If you have other terms not covered above that you are curious about, don’t hesitate to ask your agent. They will help answer questions and guide you through the process as easily as possible.