Whether you’re selling a home for the first time or you’ve been through the process before, you might be surprised at the amount of ‘lingo’ or ‘jargon’ you come across in conversation and in your paperwork. In today’s post we’ll break down some of the most commonly used terms you’ll hear when selling your Sierra Vista home and what they mean to you as a seller.
Commonly Used Home Selling Vocab
Abstract of Title – this refers to a complete history of all of the public information and records relating to the title or deed on a property. The abstract should cover all transfers from the first owner to the current one.
Appraisal – An appraisal is a professional estimation of the true value of a piece of real estate, such as a house, condo or a plot of land.
Assessed Value – The assessed value of a home is the value placed on it by local government assessment officials for the purposes of calculating property taxes.
Closing Costs – This term refers to all of the miscellaneous fees and costs which will become due when the sale is complete and the property transfers hands. Closing costs can include sales taxes, property taxes, warranty costs, appraisal costs, inspection costs, legal fees and more.
Counteroffer – A counteroffer is an offer which is made in response to another offer. For example, if a buyer offers to purchase a home for $200,000, the seller might issue a counteroffer at $220,000.
Earnest Money – This term refers to an up-front deposit provided by the buyer in order to lock in a purchase offer or purchase agreement. The earnest money is placed in escrow and if the sale moves ahead it is typically applied to the purchase price.
Escrow – An escrow is a third-part service which holds funds or documents until the real estate transaction is complete. A buyer may place their deposit or earnest money in a 30-day escrow while each party fulfills their obligations as set out in the purchase agreement.
Home Inspection – This refers to a professional inspection of the home and property to determine its condition and whether or not any repairs or maintenance are required.
Market Value – The market value of a home is the price that a buyer could be expected to pay for a home if it was purchased today.
Pre-Approval Letter – If a buyer needs mortgage financing to purchase a home, they may get a pre-approval letter from their lender to show the home seller that their finances are secure.
Purchase Offer – This is a written agreement which sets out the terms for purchasing a home and property. The offer will typically be modified numerous times during the negotiation period. Once it is signed the agreement becomes a legal contract.
If all of these terms sound a bit tough to manage, don’t worry. Your Realtor Sonny and the Sierra Vista Home Selling Team are here to assist you with every aspect of your sale. Contact us today at (520) 452-0400 and we’ll share how our approach to real estate marketing will have your Sierra Vista home sold quickly.