Termite report, Blind offers… 10 real estate terms you must know to survive the game!

By Emerick Peace

It is important for a person in the real estate field to know several of the term used. Among such terms is;

Buyer agents and seller agents

In the realtor market, both agents are involved before purchasing a home. A buyer agent represents the buyer and thus negotiates on his behalf. He is not paid by the buyer but rather gets a commission from the seller. Listing agents on the other hand represents the seller and is the one responsible to listing the property and speak on behalf of the seller. In most states, it is illegal to have one agent as a buyer and at the same time a seller.

Fixed rate and adjustable rates mortgage

When refinancing a loan, there are basically two types of mortgage payment plans. A fixed payment is one which has a predetermined interest rate over a given period of years. 15 years and thirty years are used in most cases. It is advisable to use this payment plan if a prospective buyer intends to stay in the house for a longer period of time and less risky.

Adjustable mortgage rates are those with interest rates that vary. Such loans take up to 10 years in order to pay. People that use this mode of payment are people that intend to refinance or sell the home before introductory period ends.

Before deciding on what mortgage to choose visit several mortgage lender and pick on the best in the market. At such point people consult family and friends or even professionals to guide someone throughout the whole process.

Pre-approval letter

A pre-approval letter is an estimate amount of how much a bank or mortgage broker will lend you. It is a requirement before mortgage application and house hunting. The letter is essential since it helps the buyer to tall how much they can afford to get a home. A prospective buyer should know every in an approval letter, fees involved, closing costs and specific interests. That way it is easier to plan for the money. With competitive homes it is important to have a local lender who is in search for good reputation since they mostly rely on referrals. Ut is easier to work with them in search cases and most listing agents chose them over others.

Listings

The tem mostly used by real estate agents is used to refer to homes indicated in a given website showing the house and its number of bedrooms. Such information is found in different real estate websites where by information is up to date. Most brokers have access to such sites and know which ones are up to date thus can identify which ones are more accurate than others. It is not always advisable visit sites without affiliate brokerage.

Home Inspection

Home inspection is normally carried out immediately after making an offer on a given home. Professionals are involved in the unveiling the nooks and cranny in the household. Determine the condition of pipe fitting and check whether the home poses any health hazards. In case problems are found with the homes, the buyer bargains for either price reduction or ask the seller to repair. In extreme cases the prospective buyer backs out. Most buyers especially those new in the market often skip this stage. Home inspection should be treated with a lot of concern since failure to do so buyer risks a lot of unexpected expenses in the future.

Contingencies

In real estate, contingencies refer to certain conditions that must be met either or both parties before home purchase or home selling. For instance, as a buyer you should have a financing contingency showing that you are capable of financing the loan. Another example is the inspection contingency which indicates that inspection does not show anything of concern. In stiff markets waiving or shortening the contingencies is necessary so as to speed up the process since they are of many types.

Offers

Normally one makes an offer on a home. At times the seller gives a counter offer indicating that they either want more money or to shorten the closing dates period. At such points it is necessary to involve a realtor to help in negotiation. The buyer negotiates by drafting a letter showing why he/she needs to buy a given property. Both parties counter offer toil they get to a common figure.

Closing costs

They are costs mostly 2% to 5% of the total home price but are not part of the home payment neither do they add home value to given property. It is advisable that buyers consult mortgage lenders on such cost and ask which of them are negotiable. It is also good to visit multiple lenders to ensure that one picks the best and in the long ruin save a lot of money.

Title insurance

Buyers are expected to pay for the insurance as part of closing costs. It is a type of insurance that compensates the buyer if they lose their home as a result of title dispute. The insurance searches public records and ensures that the  home buyer is the right full owner of the home title and that there are no lies on the home such as tax and contractor debts.

Appraisal

Appraisals are done when a prospective buyer visits a mortgage lender on search for a loan. It is a requirement that buyers with the help of professional conduct a comparative market research on home prices in the neighborhood. The reason behind is that one does not buy an overly charged house.