The people in real estate use a particular variety of language in their communication. They use certain terms called jargon. After reading this article, you will know real estate terms and their uses in specific domains.
You may also like to learn about the Kingdom Valley.
What is jargon?
Jargon is that specific form of language used by professionals in an organization to which they belong. For example, in the real estate sector, the agents, investors, and end users’ clients use a different language than the common people not related to real estate.
If you are in real estate, you can know the meaning of FSBO, but those who are not, cannot get its meaning. However, it means for sale by the owner. When a seller of property sells his property without the involvement of any real estate agent, it is called FSBO.
There are some known real estate terms for you to read.
Appraisal means estimating the current value of any property. When you want to take a loan from a bank or any finance provider company, it will send an appraiser to make an appraisal report for your property. Then, the bank will examine the report and decide whether your property has enough value to be mortgaged.
Buyers put backup offers when they are interested in buying a property, but it is already under contract or negotiation with other buyers. So, in this condition, the buyers ask sellers if the previous buyers turned down the offer; they are ready to buy the property at a specific price mentioned in the backup offer.
Sometimes, a buyer makes an offer without visiting the site of the property; that offer is called a blind offer. However, the buyers have the opportunity to visit the property, but they don’t. Blind offer is not applicable in a slow real market but highly competitive markets.
A buyer agent is a person having a real estate license and locating properties for buyers. They fix their commission as per the prescribed rate. However, in some contexts, the seller agent is also used to find buyers for sellers and charge their commission.
When a deal reaches its final stage, then it’s called the closing. For example, a buyer wants to purchase property, and he finds it somewhere through an agent. He paid commission to the agent and price to the seller. So, after all the documentation work and payment submission, we can say that the deal is closed.
Days on market
Days on the market means the duration of staying a property in the real estate market. It is counted from the day it is listed to the day it is sold. However, it helps the buyers to know the worth of the property. If the property had stayed for a longer duration in the market, it means that fewer investors would have taken an interest in the property.
Earnest money refers to the deposit money which the buyer offers directly on the seller’s demand. Offering the money to the sellers on their demands shows that the buyer has a keen interest in the property.
The person or the party between the sellers and buyers who hold money, documents, agreements, and other necessary belongings is called escrow holders. They are responsible for all the events and conditions till the closing of the deal.
The investment of yours in your home is equity. If you want to calculate your home’s equity, first, take the market value of your home and then subtract the amount of mortgage and debt. The reaming amount is the equity of your home.
Knowing real estate terminologies is not a difficult job, but you have to stay updated with the current market. However, for further information, you can visit sigma properties.
Muhammad Zaeem Khan, a creative writer, ardent to compose fine writings. Having vast experience in writing blogs, articles, descriptions, and in reviewing scriptures. Currently, works as a content writer with Sigma Properties & Marketing.
Muhammad Junaid is a senior Analyst and Search Engine Expert. Extensive experience being a lead writer in Rudn Enclave. Work for years with local and international enterprises. Also, represent well-known brands in the UAE.