For first-time buyers to purchase a new home can be a very daunting task, for various reasons. The first reasons can be on the different terminology you have not use before.
Down below are a list of common real estate terms to use between buyers, seller, and agents.
Agent - A certified real estate agent that can purchase and sell property on behalf of their clients. An agent must be employed by a licensed broker; they cannot act alone.
Amortization - Amortization is when you schedule your mortgage payments spread out over time. In the property market, a buyer’s amortization schedule is monthly payment over a time period between 15-40 years.
Appraisal - An appraisal is an estimation on how much is your home worth. When buying a home, the lender requires an appraisal by a third party to make the loan amount accurate. Advancement in information technology made home appraisal a very quick process for buyer’s and seller’s.
AVM (Automated Valuation Model) - Information technology software to find the estimated market value of your home.
Broker - A real estate agent who has the necessary licenses in their state to represent clients and run a firm. Brokers get comprehensive training and obtain licensing to manage individual agents through a firm or work on their own.
Contingency - A requirement that must be satisfied before a real estate deal can be signed.
Closing - The procedure for completing a real estate deal. This includes finalizing mortgage agreements, paying any necessary transaction fees, and signing documents to complete the transaction.
For more information, you can check on FazWaz Advice section.