Real Estate Terms Every Home Buyer Should Know
While our talented real estate agents are with you every step of the way in your home buying journey, it could be helpful to become familiar with some real estate jargon to fully understand the process. Some of these terms and acronyms may seem familiar to you but bookmark this page just in case you come across a term you don’t know!
Approved for short sale: This term is used to indicate that a homeowner’s bank has approved a reduced listing price, and the home is ready for resale.
As-is: When a property is sold in “as is” condition, this indicates that the seller is unwilling to perform the majority, if not all necessary repairs. Or, this means that the home is priced “as is”, which is usually lower than market pricing in the area.
Backup offer: If a buyer is interested in purchasing a home that is already under contract with someone else, that buyer has the chance to submit a “backup offer”, in case the first contract falls apart.
Buyer’s market: The real estate market contains more homes for sale, outnumbering the number of buyers. This causes homes to sit on the market longer resulting in price drops.
Comparative market analysis (CMA): An in-depth analysis prepared by a real estate agent. This determines the estimated value of a home, based on recently sold homes in a similar condition, size, and age. This analysis is only conducted on homes located in the same area.
Comps: Also known as comparable sales. Homes in a certain area that have been sold in the past six months. Your real estate agent will use these sales to determine a home’s value.
Days on market (DOM): The number of days a property listing is active.
Listing price: The price of a home set by the seller.
Multiple listing service: The database where real estate agents list properties for sale.
Seller’s market: When the market has more buyers than homes for sale. This commonly generates bidding wars.
Short sale: The sale of a property by an owner who owes more than the property is worth. The owner’s bank has to approve a lower listing price before the property can be sold.
This list only scratches the surface of the kind of terms and acronyms you’ll encounter as you navigate through the home buying process. As your real estate agents, we know that this journey can be a confusing and scary one, but that’s what we’re here for! If you’re looking for the perfect partner for the purchase of your next home, head to our Contact Us page to get started.