Real Estate Terms You SHOULD Know Before Entering The Market | Cleveland Bricks

Buying, selling, and renting are all complicated enough. Throw in the complicated real estate terms and it is easy to feel confused. To prepare you, we made a list of common terminology to help navigate you through the process. 

Let’s go!

Adjustable-Rate Mortgage:

Also known as ARMs. This means that the interest rate can go up or down and affect the monthly payments.

Amortization:

The timeline of a mortgage payment. The monthly cost of a 10, 15, or 30-year mortgage.13

Buyers Agent:

Helps buyers locate a new property and work for them on the bidding process. They hold a real estate license and can also be called a Selling Agent.

Closing Costs:

Charges that are paid either by the buyer or seller at the closing of the sale. They can include inspection fees, title searches, prepaid interest, and more.

Comparable Sales:

Also known as comps – are the prices properties sold for. They are used to price homes on the market that are similar in size and located in the same area.

DOM (Days On Market):

Delineates the days a home is listed on the market through the time a contract is signed by the buyer and seller.

Earnest Money:

Money that is put down to show a buyer is intent on the purchase of a property. Also known as “good faith” money.

Fixed-Rate Mortgage:

The interest rate is consistent for the length of the loan.

Home Inspection:

A licensed home inspector informs the buyer/seller of the state of a property’s roof, plumbing, HVAC system, electric system, and more. This is a visual inspection only.

Listing:

An available home for sale. Details usually include – address, home details, and the price.

MLS (Multiple Listing Service):

A bank of properties that is open to real estate agents and brokers to view available homes for sale, comparative pricing, and add information on their own listings. 

Principal:

The total amount of money that is owed to the lender decreases with every payment.

Short Sale:

The sale of the property for less than what the owner owes.

Turn-key:

A piece of real estate that is in great move-in condition.

Under Contract:

When a buyer makes an offer and the seller approves. This is the step before a property is sold. 

Knowing the terminology just makes everything easier. Cleveland Bricks can guide you whether you are buying or renting. Check out our great properties here. Contact us today with any questions. We wish you all the best on your real estate adventures!