Whether you’re buying or selling, you’ll need to become familiar with common real estate terms.This helps you better understand what’s going on during the buying or selling process.
Here are five terms you should know when dealing with real estate:
- Closing costs: This refers to all of the costs that the buyer and seller pay upon closing, which include mortgage processing fees, title insurance, transfer taxes and brokerage commission.
- CMA: This refers to a comparative market analysis, which contains information on the prices of similar homes for sale in the area. A CMA helps you decide how much to sell your home for.
- Fixture: This refers to components of a home that are permanent, such as light fixtures, landscaping and window coverings. These must be dealt with carefully during negotiations in order to avoid disputes.
- Listing: This refers to the agreement a seller and real estate broker have for marketing and selling the home. It’s sometimes used in reference to the home that’s being sold.
- Title insurance: This insurance policy provides protection from ownership claims that are questionable.