10 Terms you Must Understand When Conducting Real Estate Transactions
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Here is some useful real-estate vocabulary.
Lien
Lien is the amount that the owner of the home, or the seller, has to pay on their mortgage. Usually, the mortgage is supposed to be paid before selling the property.
Market Value
It is the highest expected price of the property in fair market conditions. The Market value of the property plays a vital role in the evaluation of its price.
Amortization
Amortization is the period of payment of a loan from a mortgage, including principal and interest.
Capitalization Rate
The capitalization rate is used to ascertain the value of a property based on net income. It is usually productive in the case of Apartment buildings.
Comparable Market Analysis (CMA)
It analyzes the home’s value based on the recent selling of similar properties in the same area. CMA helps in the estimation of a home’s worth.
Depreciation
Depreciation is the reduction in the property’s value (building) due to wear and tear over some time. It does not apply to land property.
Title
A title refers to the entitlement of various rights that arise with the lawful ownership over the property.
Counter Offer
Different changes are made to the agreement, either by the seller or the buyer. It can also mean when the initial offer gets replaced by a new counteroffer.
Foreclosure
Foreclosure is when the borrower defaults to make the payment, so the lender claims ownership over the mortgaged property.
Principal
It is the amount borrowed for a mortgage loan. The payment of the mortgage includes both the principal and the interest.
If you are planning on buying/selling your property, these words may come in handy. When dealing with real estate, one should be aware of the basic terminology. Housal assists in dealing with properties, so you can get on board with us if you require that. With Housal, you can get your Condo for sale and boost up your property listings.
