Every industry has its own jargon, and real estate is no different. It can all seem like a confusing word salad for those new to the business. We’ve compiled a list of common terms you’re likely to encounter.
This is the agent who represents the buyer in the home-buying process. On the other side is the listing agent, who represents the seller.
In addition to the final price of a home, there are closing costs, which will typically make up about two to five percent of the purchase price, not including the down payment. Examples of closing costs include loan processing costs, title insurance, and excise tax.
COMPARATIVE MARKET ANALYSIS
Comparative market analysis (CMA) is a report on comparable homes in the area that is used to derive an accurate value for the home in question.
This term refers to conditions that have to be met in order for the purchase of a home to be finalized. For example, there may be contingencies that the loan must be approved or the appraised value must be near the final sale price.
Dual agency is when one agent represents both sides, rather than having both a buyer’s agent and a listing agent.
A listing is essentially a home that is for sale. The term gets its name from the fact that these homes are often “listed” on a website or in a publication.
A Realtor is a real estate agent who specifically is a member of the National Association of Realtors. NAR has a code of standards and ethics that members must adhere to.