Selling a home can be a trying time. First, you must prepare your home for the market which includes a long list of to-do items like cleaning and fixing minor or major issues. Then, you have to list your home which is a whole new world of real estate terms and big numbers.
That’s why you need to know real estate terminology before you list your home for sale. It could help you make the right decisions as you prepare for this extreme life event.
Whether you’re thinking about selling your home or you’ve already listed it, we’re here to help. Keep reading for a comprehensive list of all the important real estate terms that Maryland home sellers should know.
Real Estate Terms Sellers Need to Know
Real estate jargon is a complicated language with a lot of terms and definitions. Not knowing what something means when your real estate agent or buyer or even banker is speaking to you can cost you time and money in the long run. It can also cause you to be taken advantage of if you’re not careful.
Take a look at these terms and make yourself familiar with them so that you can have educated discussions with all involved throughout the process of selling your Maryland real estate.
1. Listing Agent
If you’ve already listed your home, you may be familiar with this term. The listing agent represents the seller to home buyers and buyer’s agents.
2. Real Estate Agent
Sometimes also known as a realtor. Realtors must be members of the National Association of Realtors. Real estate agents and realtors can represent buyers and sellers as long as they hold current licensing.
3. Real Estate Broker
Real estate brokers generally work over other agents. They have passed a state broker’s exam and met a minimum number of qualifications to earn this title and responsibility.
4. Buyer’s Agent
You may have had a buyer’s agent when you bought your home. This agent represents the buyer during the sale process and transaction.
5. Loan Officer
A loan officer assists buyers with the purchase of a home. They generally work for mortgage brokers or banking institutions.
Real estate agents and loan officers earn a living off their commision. This is the premium charged, typically a percentage of the sale of a home, for services provided.
7. For Sale By Owner (FSBO)
If you are interested in selling your home without representation, you may list it yourself. You will be solely responsible for advertising the home. This is an easy way to avoid paying commission.
8. Owner Financing
May also be known as seller financing. This definition is just like it sounds – the buyer finances the home directly through the seller thereby bypassing conventional mortgage lenders and financial institutions.
9. Multiple Listing Service (MLS)
One of the most important real estate terms to know when trying to sell a house is MLS. The multiple listing service is a nationwide listing site where agents and sellers can list details of their property for sale so that buyers can find them.
Many sellers find it beneficial to stage their homes according to trends in decor and design in order to appeal to buyers’ interests. You can hire a home stager or do it yourself.
In realtor terms, a pre-qualification simply means that a buyer has the credentials to purchase a home.
A pre-approval indicates that the buyer has the financing to purchase the home.
When selling your home, you must have it appraised in order to evaluate the market value. The appraiser will determine this value by comparing your home to other homes in the neighborhood.
Once your home is appraised, you will know how much equity is in the home. This is the amount of worth minus the difference in what you owe on the home. In other words, it is the profit you will receive for selling the home if you receive the full asking price.
Each home for sale must have several inspections before a mortgage company will approve the purchase. This may include structural inspections, pest inspections, and others upon request of the buyer. Maryland does not require a home to be inspected before the sale, often buyers will desire a home inspection before an offer will be written.
Contingencies are certain stipulations in a real estate contract that must be met before the final sale of the home. These are generally provided by both buyer and seller.
Once a buyer offers you an amount on your home, you should always come back with a counteroffer. This should be a lower amount than what the buyer proposed but within your comfort range.
18. Purchase Agreement
There’s always a lot of paperwork when it comes to selling a house. Including a purchase agreement. This agreement demonstrates the buyer’s intent to purchase your home.
A home title is similar to a car title – it represents your rights to the property. Each time a home is sold, the title is transferred from seller to buyer which gives the buyer legal rights to the property.
The closing is the last stage of a sale transaction. You will meet with the buyer and any agents that have been involved as well as a title closer to sign all necessary documents which legally transfer the property from you to the buyer.
Knowing all of the proper real estate terms will benefit you throughout the process of selling your home. Keep this real estate glossary with you as you navigate buyers and agents so that you have something to reference when they start throwing around mortgage language. Not only will you feel more confident, but you’ll also come off as more knowledgeable to those you’re dealing with.
While being well versed in these terms that are sure to come up in any transaction is very important, what is also essential is being represented by an experienced real estate agent with expertise in your market and that will advocate on your behalf to negotiate the best price and terms for the sale of your home. Our agents at K2 Home Group are just that and we would love to hear from you! Just head over to the contact us tab on our site menu to get the conversation started.