Real Estate Terms From Appraisals To Comps

Real Estate Terms – From Appraisals to​ Comps
When you’re selling your home or​ other real property on your own, you don’t have to​ know everything about the​ process .​
It does help to​ have a​ practical knowledge of​ the​ terms that come up during the​ process .​
Keep in​ mind, these aren’t intended as​ be all, end all, penultimate definitions .​
They’re working definitions for​ pragmatic folks .​
Let’s go…
1) Acceptance - a​ legal term referring to​ the​ acceptance of​ a​ buyer’s offer by the​ seller .​
Acceptance is​ often preceded by a​ number of​ counter offers between the​ parties .​
2) Appraisal – a​ professional opinion of​ the​ value of​ real property .​
Most jurisdictions have careful rules defining who may call themselves an​ appraiser, and​ most lenders have a​ stable of​ approved appraisers whom they use regularly .​
Typically, the​ lender making the​ new mortgage loan will require that the​ property appraise for​ at​ least as​ much as​ the​ purchase price .​
Occasionally, a​ buyer will require the​ same thing in​ an​ all cash transaction.
3) Bridge Loan – Short term loans used to​ bridge any time gap between the​ sale of​ a​ home and​ purchase of​ the​ next one .​
These loans can be valuable when escrow is​ delayed on the​ sale of​ a​ home and​ the​ seller has committed to​ the​ purchase of​ another home .​
Bridge loans are also known as​ panic loans, but can be a​ life saver .​
4) Coinciding Settlements – when a​ buyer needs the​ funds from the​ sale of​ his prior home (which is​ under contract to​ be sold) in​ order to​ purchase his next home, he may well make settlement under his sale a​ contingency for​ settling on the​ home he is​ purchasing .​
In reality, the​ sales don’t usually coincide .​
They usually take place back to​ back .​
Funds from the​ first are often wire transferred to​ the​ second .​

5) Closing – Depending upon the​ state you live in, Closing can have different meanings .​
Generally, the​ closing of​ a​ real estate transaction refers to​ the​ exchange of​ necessary documents, execution of​ the​ same and​ transfer of​ money .​
6) Comps – This term refers to​ the​ sales prices of​ similar properties in​ the​ area of​ a​ house in​ question .​
Comps are used to​ help determine the​ fair market value of​ a​ property .​
7) Conditions – any conditions which must be met before the​ sale can be consummated .​
Some typical conditions include things like the​ property’s appraising for​ the​ purchase price or​ more, the​ property’s being in​ good condition when a​ home inspection is​ done, the​ buyer’s loan being approved.
As you can image, there are many real estate terms for​ which you have a​ general understanding .​
In our next article, we continue with the​ terms starting with Condominium.

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