Planning to sell your home? The following list of terms will help you gain familiarity with what will be going on throughout the process.
Appraisal: The evaluation of a property to determine its price based on previous sales of similar properties.
Closing costs: Expenses incurred in the purchase and sale of property that are paid at the time of closing. They include title insurance, attorney fees, appraisal fees, recording fees and taxes.
Code of ethics: A standard of conduct required by license laws and by the National Association of Realtors.
Down payment: The amount of money a buyer pays upfront to purchase the property. This is typically around 10% of the total cost.
Equity: The difference between what something is worth and any outstanding mortgage due.
Fair market value: The price for a property agreed upon between a buyer and seller in a competitive market.
Holding period: The length of time a property is owned.
Market value: An estimation of the price for a property in relation to the current real estate market.
Real estate broker: An individual employed as an agent to bring buyers and sellers together and to assist in negotiating real estate contracts between them.
Title: The documentation that an owner is in lawful possession of the property.