6 Real Estate Terms Every Home Seller Should Know

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6 Real Estate Terms Every Home Seller Should Know

May 19, 2021 | For Sellers, Real Estate Advice | 0 comments

December 2022
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Selling your home is no small step, especially when faced with real estate terms that can baffle even the sharpest of minds. The list we’ve provided here is a good place to start in learning the vocabulary; it will help you navigate the selling and purchasing process with greater ease.

 

Real Estate Terms Every Home Seller Should Know


 

1. Appraisal Contingency

This clause permits a buyer to terminate a purchase agreement if the home appraises for less than the sale price. A lender never wants to give a loan that exceeds a property’s value. To avoid this, a licensed appraiser will be hired to evaluate the property and ensure the asking price is appropriate.

 

2. As-Is

If you market your home “as-is,” you’re essentially stating you will perform few, if any, of the repairs necessary. Alternatively, this term can also refer to the price if it’s lower than comparable homes in the area.

Last but not least, “as-is” may point to the condition of the home at the time of the offer. If the property changes between the offer and closing, you – the seller – must restore it to the same condition as when the offer came in.

 

3. Covenants, Conditions, and Restrictions

These are commonly the rules enforced on real property by a homeowner’s association (HOA), builder, developer, or neighborhood association. They’re used to outline what a homeowner can rightfully do in relation to landscaping, holiday decorations, and other visible items. In some cases, monthly or annual fees must be paid to the governing association in exchange for services like lawn mowing and snow shoveling.

 

4. Conventional Sale

This sale is made either when you own the property outright with no mortgage or have a mortgage with a remaining balance that is less than your home’s value. Conventional sales often move more smoothly than their non-conventional counterparts – including foreclosures and short sales.

 

5. Due Diligence

Due diligence is a window of time specified in the purchase agreement that allows a buyer to fully examine the property. He or she might hire professionals to conduct tests, inspect the property, and provide other services that help inform the purchase decision.
A buyer may additionally be given a chance to renegotiate the purchase agreement based on his or her findings. In short, due diligence provides more details about the property.

 

6. Home Sale Contingency

The buyer can include this as a condition to purchase the home; it informs the seller that as a condition to purchase the property, the buyer must finalize closing on their present home. Many buyers use a home sale contingency to acquire the down payment necessary for a new home purchase. In certain market conditions, however, this can hinder negotiations with the seller.

These are but a sampling of the many terms used in a real estate transaction. If you’re thinking about selling your home, it helps to have a qualified and vetted realtor on your side. This professional can guide you through every step of the selling and/or buying process and will work to protect your best interests.

To find a real estate agent in your area, visit Hershey Real Estate Group today.

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