Know Your Real Estate Jargon
Understanding this common real estate jargon allows you to navigate the real estate market better and make informed decisions about your property.
Real estate jargon can also help you understand the language of the industry and stay up-to-date with the latest trends. For example, terms like “turnkey property” or “cash flow” can help you understand how a particular property might be more valuable than another. Understanding the language of the market can help you make smarter decisions when it comes to buying, selling, and investing in real estate. Additionally, it can help you better communicate with professionals in the industry, such as real estate agents and lenders, who can help you make the most of your real estate investments.
Closing: The final step in a real estate transaction is where the buyer and seller sign all of the necessary paperwork, and the title of the property is officially transferred.
Escrow: Money and/or documents held by a third party on behalf of two other parties who are in the process of completing a transaction.
Deed: A legal document that transfers the ownership of a property from one party to another.
Title: A document that shows the legal owner of a property, as well as any encumbrances (such as liens or mortgages) associated with it.
Mortgage: A loan used to purchase a property.
Appraisal: A professional opinion of the value of a property.
Equity: The difference between the value of a property and the amount that is still owed on it.
Listing: The marketing of a property for sale.
Buyer’s Agent: A real estate agent representing the buyer in a transaction.
Seller’s Agent: A real estate agent representing the seller in a transaction.
MLS (Multiple Listing Service): A database of properties for sale used by real estate agents.
Offer: A proposal from a buyer to purchase a property at a certain price.
Zoning: Rules and regulations that determine how a piece of land can be used.
Contingency: A condition that must be met before a real estate transaction can be completed.
Inspection: A professional examination of a property to ensure it meets certain standards.
Closing Costs: Fees and other charges associated with a real estate transaction.
Foreclosure: The process of repossessing a property due to the borrower’s failure to make payments.
Refinancing: Obtaining a new loan to pay off an existing loan.
Tax Assessment: The valuation of a property used to determine the amount of taxes owed.
Lease: A legal contract between a landlord and a tenant that outlines the terms of the rental agreement
turnkey property: A real estate investment that is ready to be occupied and used. It typically involves a home that is already renovated and ready for immediate move-in and may even include appliances and furniture.
Cash Flow: The amount of money that a property generates after all expenses have been paid. It is an important metric to consider when evaluating a potential investment property and can be used to determine the amount of profit or loss associated with a particular property.