Whether you have been looking for a new home days, weeks, months, or years, you have likely come across some interesting real estate terms. Do you know what they all mean? Take this fun quiz to find out how many of the top real estate terms you really understand. If you have questions about them, or other questions related to buying or selling a home, contact Berkshire Hathaway HomeServices at (310) 373-0021 right away.
Appraisal
Yes, an appraisal is an estimate of the value of a home but it is much more than that. It is prepared by an appraiser who is licensed and certified. They consider not just your home but homes in the area to compare it to. Their estimate is much more than a guess – it is based on facts.
Closing Costs
These are the fees that come along with buying a home. They are due when the sales transaction is complete. They can include a wide range of things from a home inspection to a title search, from an appraisal to a pest inspection – and much more. You should budget about 1% – 3% of your total home purchase price for your closing costs.
Comparative Market Analysis
This is something that a real estate agent creates to determine their estimate of the value of a property. They consider similar homes of similar sizes in similar conditions, with similar features and similar ages. These homes used for the CMA will be “close” to the property, though what that means can vary. For example, in a bustling city it would likely mean within half a mile while a rural property could have a CMA based on homes within 20 miles. This is different from an appraisal because it is completed by a real estate agent for your information only.
Homeowners Association
Perhaps more well known as an HOA, a homeowners association is the governing body of a housing development, townhome complex, or condo building. They set rules and regulations for all people who live within it. There are generally fees and special assessments due as well. It is essential to know about HOA costs before you buy a property as it can significantly increase your monthly costs. However, it generally comes with benefits such as landscaping or paid utilities.
Pre-Qualification
Before a real estate agent shows you a home they are likely to request pre-qualification, also known as pre-approval or other financing information from you. This involves a lender looking at your income, assets, credit score, and other factors to determine if you are likely to qualify for a mortgage.
Are there other terms you are not sure about? Do you need help finding the right options for your needs? Then contact Berkshire Hathaway HomeServices at (310) 373-0021 and we can help you find the right home or the right seller’s agent.