20 TERMS EVERY HOME SELLER SHOULD KNOW
Selling your home is not an easy task. You will have questions and concerns along the way and may need assistance if your agent is unable to get you an answer as soon as possible. There are some terms that will come in handy during your home sale and make life a little easier if you use a cheat sheet during the process.
Affidavit of title: A written statement certifying that the seller holds the property by title. It states any current legal issues in terms of the seller. This is a sworn fact provided by the seller who possess the property.
Appraisal: This is an estimated market value of the property at that moment in time. It is common that an appraiser is the one who assess this by using comparables in the area.
“As-is”: This is one of the most important terms to know as a seller as you are granted the right to stipulate that you will not make any repairs or changes to the property prior to the sale.
Buyer’s market: This is when there are low prices and a high volume of homes available in the market. This is not desired as a seller.
Capital gain: This is when your home sells for more than what the initial price was. This means you received additional profit during the home sale.
Chain of title: This is known as the “timeline” history of who owned the title and when. This is important to know about so that there is no confusion on who currently and previously owned title.
Competitive Market Analysis (CMA): thank your real estate agent for these! This is a detailed assessment of homes that are listed and/or sold in the area based on location, style of the home, amenities and more that are similar to your home.For an accurate price point, real estate agents prepare this to show their clients that based on what is listed and sold in the area, the home would best be priced at a specific amount.
Counteroffer: If a buyer makes an offer and you come back with your own offer, this is considered a “counteroffer”.
Curb appeal: How your home looks from the outside, from the trees and grass in the lawn to the type of structure your home has.
Earnest money: The minute an offer is made, a buyer that offers money in good faith has the money held in a trust account until closing.
Escrow account: This is where the earnest money is held.
Fiduciary relationship: Every agent-seller and agent-buyer relationship has a fiduciary relationship. The agent has a duty to provide the utmost care for the buyer or seller as this is their job. The agent is to act in the best interest of the buyer or seller (This means providing the party with all information known to the agent, such as, protection and prevention after the home sale from any lawsuit. Click here to learn more.)
Market value: Under normal market conditions, this would be the value of the property. This is also known as “fair value”.
Multiple-Listing Service (MLS): Where multiple brokers and agents share listings. This is done online for all to view. You WANT your home on the MLS for all agents representing buyers to see your home is for sale!
Realtor: As a real estate agent and member of the National Association of Realtors, these agents abide by a code of ethics set by the NAR, and are often times top performing agents.
Sellers Shield: Providing home sale lawsuit prevention and protection is essential today in real estate; Sellers Shield is an interactive and online Sellers Disclosure Process that guides home sellers through the disclosure process... preventing lawsuits for sellers, agents, and brokers. This is key in fulfilling the agent’s fiduciary duty to their client. Not to mention, when combined with our Home Sale Legal Protection™, provides sellers with peace of mind after the sale. This is a great value proposition to have in a listing presentation by providing clients with online and interactive legal guidance and protection for the Seller’s Disclosure Process through a third party!
Staging: You want to have prospective buyers see your home at its best during the home sale process. By staging your home, you spice up your home a bit. This includes repainting, rearranging furniture, adding decor, and more in order to make the home more appealing. This is usually done by using a professional stager in the real estate field.
Survey: Having your home surveyed determines how much property you actually have. This means measuring the lot lines. This includes encroachments and easements, such as paths and additions outside the lot.
Under contract: A buyer has made an offer on the home and no other interested party is able to make a better offer in hopes of taking away the bid. A buyer has the right to have you stipulate this in the contract.
Walk-through: This is done prior to closing and for the sake of the buyer wanting to be sure there was nothing missed in the initial walk-through such as property defects or issues.