7 General Real Estate Terms That You Should Know
Real estate is considered real property that includes land and anything permanently attached to it or built on it, whether natural or man-made.
There are five main categories of real estate which include residential, commercial, industrial, raw land, and special use.
Investing in real estate includes purchasing a home, rental property, or land. The general terms of real estate are-
- As-is
Any property promoted in “as-in” condition indicates that the seller is unwilling to perform most if not all repairs, i.e., the seller will not make any repairs or offer any credit, thus, the purchaser can retain the right to either take the property the way it is or cancel after inspections.
- Adjustable-Rate Mortgage
Mortgages have become a common key material for almost all house buyers. It helps people to purchase their dream house without waiting for years to save money for it. And, also it refers to the type of loan where your interest rates keep on changing during the entire tenure.
- Buyers Agent
Commonly known as real estate brokers, are the ones who connect a potential buyer with the property seller. They work as a bridge between two parties.
- Cash Reserves
To close a property deal, a buyer needs to provide the down payment and closing costs. Cash reserves refer to a specific amount of money that gets left over after making the mentioned two payments.
- Closing
When the home sale is considered final, which typically includes all parties’ signatures on all required documents, all monies conveyed and all procedures are done, we call it as close. After closing the buyer gets access to the property and is considered the new homeowner.
- Due diligence
It is a time frame provided to a buyer to fully examine a property, often by hiring experts to inspect the property, perform tests, etc., so that a buyer may decide on how to proceed. Due diligence allows a buyer to fully understand what they are buying.
- Equity
This is the investment a homeowner has in their home. To calculate equity, take the market value of the home and subtract any mortgages or liens against the property. The amount left over is the amount of equity you have in the home.
