If you’re having trouble understanding the real estate world, it’s likely because you don’t fully understand many of the real estate terms that exist. With so many terms, it can be hard to understand all of them. Take a look at the following information, to better understand what some of these terms mean. It’s important that you learn what the most basic real estate terms mean so that you can make smart decisions related to buying and selling real estate property.
- Appraisal – A procedure in which a qualified individual estimates the value of a piece of property.
- Closing – A final meeting in which the transfer of title of property passes from the seller to the buyer.
- Closing Costs – The costs associated with the closing. These fees include title search, insurance, attorney fees, survey, and points charged by the lender. These costs are also referred to settlement costs.
- Deed – A written document that transfers ownership of a property to another individual.
- Depreciation – Loss of value by regular wear and tear.
- Equity – The difference between the market value of a property and the balance that is owed on the mortgage.
- Lease – A written agreement that grants the occupancy of a property in exchange for rent.
- Lien – A claim upon property for payment of a debt.
- Market value – The highest price that a buyer will pay as well as the lowest price a seller will accept for a property.
- Mortgage – A legal document that specifies a certain amount of money to purchase a home at a certain interest rate; the mortgage uses the property as collateral.
- Refinance – The process of paying off an existing loan with proceeds from another loan.
- Survey – The measurement of a piece of land in order to determine boundaries, size, and location.
- Title – Written evidence that an individual has the right to ownership of a property.
- Title Insurance – A policy that protects a buyer against damage or loss that results from a defective title.
- Zoning – A procedure that classifies property for certain uses. This includes residential, commercial, and industrial.
Take the time to understand some of the above terms. This will allow you to be more prepared when discussing issues related to the real estate world. You will feel more comfortable discussing selling and buying homes once you have a greater understanding of the above basic real estate terms.