The real estate process is complicated enough already. Real estate lingo can make it even more confusing, particularly if you are a first time buyer. In this article you will find an overview of frequently used real estate lingo in Pennsylvania and New Jersey. This will help simplify the buying and selling process.
Frequently Used Real Estate Lingo In Pennsylvania And New Jersey
CMA
CMA stands for Comparative Market Analysis. This is a report that compares your home to similar-styled properties that sold within the last few months in the same city. It traditionally details a price range for which your real estate might sell in the current market.
MLS
MLS is an acronym for Multiple Listing Service. This is a system where members of the MLS enter homes for sale. Different areas commonly have individual MLS systems, and some states may have multiple ones. The general public is not given direct access to the database but can obtain access from allowed parties.
Assessed Value
This is the value calculated for properties by a public tax assessor and used to levy real estate property taxes. Assessed value has no relevance to the market value of a property.
Walk-Thru
Walk-thrus traditionally take place immediately prior to a closing. It allows a buyer to preview a property and to verify that the condition has not changed from the last time the buyer visited it.
Contract Terms
Contingency
A contingency is a condition required for an individual to proceed with a home sale or purchase. For example, the ability to purchase could be contingent upon the sale of their current real estate. Other common contingencies are for completion of an inspection and receipt of financing commitment.
Earnest Deposits
Earnest deposits applies to funds given by a buyer as part of a contract to purchase real estate. It indicates that a buyer is committed and is acting in good faith. Deposits are traditionally retained by the listing agency on behalf of a seller and given back to a buyer at closing.
Closing Date
A closing is when documentation is completed, money is exchanged, and a home officially transfers from the current owner to a new owner. Contracts always have a closing date and location specified.
Additional Information on Real Estate Lingo
This blog provides an overview of frequently used real estate lingo in Pennsylvania and New Jersey and includes only the most common terms. For more detailed real estate information and guidance, contact Diana Escobar-Wachter at 610-461-2910 or wachterd@accessabstract.com.
