The real estate procedure is elaborate enough from the start. Real estate lingo can make it even more complicated, especially if you are a first time buyer. Below you will find details on frequently used real estate lingo in Philadelphia. This will help clarify the home buying and selling process.
Frequently Used Real Estate Lingo In Philadelphia
CMA means Comparative Market Analysis. This is a document that compares your real estate to homes with similar features that sold recently in the area. It usually produces a price range for which your real estate might sell in the existing market.
MLS is an acronym for Multiple Listing Service. This is a database where real estate professionals enter listings. States normally have individual MLS systems, and some areas could have multiple ones. The general public is not granted direct access to this database but can receive access from allowed parties.
This is the valuation calculated for properties by a public tax assessor and used to calculate real estate property taxes. Assessed value has no relevance to the market value of a home.
Walk-thrus traditionally occur immediately before a closing. It permits a buyer to quickly inspect a property and to verify that the condition has not altered from the last time they saw it.
A contingency is a condition required for a party to move forward with a home sale or purchase. For example, a buyer’s purchase might be contingent on the sale of their current home. Other typical contingencies are for completion of a home inspection and ability to obtain financing commitment.
Earnest deposits refers to funds given by a buyer as part of a agreement to purchase a home. It indicates that a buyer is committed and is moving forward in good faith. Deposits are traditionally retained by the listing agency for a seller and returned to a buyer at closing.
A closing is when documentation is completed, funds are exchanged, and real estate officially transfers from the current owner to a new owner. Agreements normally have a closing date and location noted.
More Real Estate Lingo
This article provides details on frequently used real estate lingo in Philadelphia and entails only the most basic terms. For more detailed real estate information and advice, contact Diana Escobar-Wachter at 610-461-2910 or firstname.lastname@example.org.