15 Real Estate Terms You Need To Know

The home buying and selling process can seem a bit intimidating with all of the specific terms and real estate lingo, especially for first timers. Whether you are new to the real estate market, or just need a quick refresher, your trusted real estate agent at the Lake of the Ozarks has provided a guide to help clarify. Provided below are top terms that are used frequently in the real estate market, and can help you better prepare for selling or buying a home in the near future.

1) Seller’s & Buyer’s Agent – A buyer’s agent will represent the those looking to purchase a home and a seller’s agent will represent the homeowners who are selling.

2) Listings – A listing refers to a home that is currently for sale on the market.

3) Pre-Approval - A borrower has completed a loan application and provided debt, income, and savings documentation, which an underwriter has reviewed and approved. A pre-approval letter shows the homeowner and their real estate agent a dollar amount in which they are approved to borrow.

4) Down-Payment - The part of the purchase price of a property that the buyer pays in cash and does not finance with a mortgage. The down-payment amount required varies with the type of loan.

5) Appraisal - A written justification of the price paid for a property, primarily based on an analysis of comparable sales of similar homes nearby.

6) Escrow - An item of value, money, or documents deposited with a third party to be delivered upon the fulfillment of a condition. Putting money into an escrow account shows everyone involved in the transaction, that you are serious about purchasing the home.

7) Inspection - A thorough inspection by a professional that evaluates the structural and mechanical condition of a property. Many times a buyer’s offer will be contingent on an inspection.

8) Contingent - A condition that must be met before a contract is legally binding.

9) Closing Cost -  The amount you are required to bring to closing, when you sign the papers to buy or sell your house.

10) Lender - A term which can refer to the institution making the loan or to the individual representing the firm.

11) Home Warranty - A type of insurance often purchased by homebuyers that will cover repairs to certain items, such as heating or air conditioning, should they break down within the coverage period.

12) Title - A legal document evidencing a person's right to or ownership of a property.

13) Principal - The amount borrowed or remaining unpaid. Principal is the part of the monthly payment that reduces the remaining balance of a mortgage.

14) Equity - A homeowner's financial interest in a property. Equity is the difference between the fair market value of the property and the amount still owed on its mortgage and other liens.

15) Homeowner Insurance - An insurance policy that combines personal liability insurance and hazard insurance coverage for a dwelling and its contents. This is typically tied into your mortgage payment.

Now that you have a refresher on these common real estate terms, you are ready to enter the market with confidence. Whether you are buying or selling, the lingo can help you understand what your expert real estate agent in Lake Ozark, MO is referring to. If you are in the market to sell or buy, I would be pleased to help you throughout the entire process. I will be able to walk you through and explain each step and term necessary for your real estate transaction. Give me a call at (573) 280-0484 for all of your real estate at the Lake of the Ozarks needs.

Susan Spica
Professional REALTOR®

BerkShire Hathaway HomeServices
101 Crossings West, Ste. 202
Lake Ozark, MO 65049

Office: (573) 365-6868
Susan's Cell: (573) 280-0484