Three Key Terms A Home Buyer Should Know

It is important to know some real estate terminology when you're considering the purchase of a new home. This may be a complex transaction that should be well prepared for ahead of time. By understanding what specific terms mean when buying property, this can make the entire process less stressful.

Buyer Cost Sheet

The report that will be provided to you by your real estate agent with an itemized list of fees associated with buying a home is referred to as the buyer cost sheet.

Listed below are some of the items included:

  1. The costs for having a home inspected and appraised.
  2. The earnest money you put down to secure a home.
  3. Any fees you have been required to pay for the transfer of ownership will be included.
  4. The total amount of closing costs that is necessary when purchasing real estate.
  5. Items that are paid in advance, which may include property taxes, homeowner's insurance, and association dues.

Contingencies

Contingencies are clauses stated in a contractual agreement. They specify that, if any of the terms or conditions in the contract are not followed through as originally agreed upon, the agreement may be void.

For example, if a buyer agrees to purchase a home within thirty days and decides that it may take six months to complete the purchase, this would make the agreement null and void.

Earnest Money

When it comes to securing a home, you will have to show the seller that you are serious. This translates to putting cash upfront when committing to the purchase of any real estate property.

You can expect to put as much as 20 percent of the total price of the home down to prevent the seller from finding another buyer.

Comparative Market Analysis

One tool that can be your ticket to finding the right home in the neighborhood you wish to live is the comparative market analysis. Listed below are some of the things you can learn by looking at this report:

  1. The selling prices of homes that have been on the market.
  2. The amount of time each home has been listed for sale.
  3. Comparable pricing of all homes that have sold on the real estate market. 

Finally, by educating yourself on what is involved when buying a home, this may allow for faster success. By consulting with a real estate agent to help you with this process, you may be moving in sooner than you anticipated.


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