Important Terminologies to Know Before Buying a Home

Buying a HomeThere is so much more to buying a home than the number of rooms and bathrooms and other details like that. If it is your first time to buy residential property, it is necessary to know about some important terminologies to guide you with the purchase. There are many homes for sale in Caroline Springs, and knowing some prominent words will never hurt once you get started with the purchasing process.

Here are some real estate terms to get you started:

Listings

Listings are simply houses that are for sale. A “listing” on a property website will lead you to information about a home, including its prices and number of rooms.

Comparative Market Analysis

This is a comparable assessment of homes recently sold in a neighbourhood. It is the determining factor of what the fair price range is for homes in that specific market.

Earnest Money

Earnest money is the amount you need to pay within one to three business days after deciding on a price with the seller to show that you are serious about buying the house. Earnest money is usually 1 to 3% of the total price.

Dual Agency

Dual agency is when a listing agent sells a house and also acts as the agent of the buyer. It normally isn’t advantageous for an agent to represent both the selling and buying parties in a real estate deal. Chances are you won’t get a good price if you’re working with a dual agent.

Contingencies

Contingencies are the specific conditions that demand to be met when you put an offer and seal the deal on a home. The most common types of contingencies are financing, inspection, and appraisal contingencies. Make sure to discuss these with your agent.

Closing Costs

There are a lot of fees involved in buying a home. One such expense is the closing costs that can amount to 2 to 5% of the home’s purchase price.

Familiarise yourself with the basics of real estate by searching the Internet or working with a trustworthy agent. This will help you seal a better deal and be confident about your purchase.