Real Estate Terms Made Easy

Real estate can seem like a foreign language to most. How can you make a big decision, whether it is renting a house or buying a new home, if you don’t understand what the real estate agent is talking about? Here is a guide to help you understand 10 difficult real estate terms that could be involved with your decision that you will understand in no time.

Appraisal РThe process where an appraiser estimates the value of your home you are trying to sell or a home you are trying to buy. They look at the interior, exterior, the community your home is in, and similar properties like the house you are trying to sell or purchase.

Contingencies – The conditions that must be met before a real estate deal can continue.

CPI or Consumer Price Index РThe range of prices that could be typical for certain properties in the real estate industry.

Dual Agency – There are two agents, a buyer and a seller, who handle different things. A dual agency is an agent who represents both the buyer and the seller and takes care of both sides of the transaction.

Escrow – This term means that the deed of a property will be pending, and usually held in the custody of someone else, until the real estate transaction is complete.

HVAC – HVAC stands for heating, ventilating, and air conditioning, and it is sometimes used to determine the price of the rent.

 

Real Estate Broker – A person who brings buyers and sellers together to discuss real estate contracts. Also known as the in-between person.

Underwriting – A person will determine how much risk a person is taking when looking for real estate funding.

Zoning – Zoning is how the government regulates the usage of land for real estate property and privately owned property.

About the Author: Miguel is a guest contributor from Valley Brokers, a full service real estate company serving the Albany and Corvallis Oregon areas.

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