Home Selling Terms You Should Be Familiar With

Selling your home can be a daunting task. There are many things to consider, and it can feel like there are a million things you need to do in order to get it ready for sale. One of the most important aspects of selling your home is understanding the terminology involved in the process. These are three of the most common terms used when selling a home. By understanding what these terms mean, you will be able to make more informed decisions about your sale and protect yourself from being taken advantage of.

Escrow

An escrow is an account held by a third party on behalf of two parties involved in a transaction. The funds are held until all the conditions of the contract are met, at which point the funds are released to the seller. Escrow is often used in home sales to protect both the buyer and the seller. For the buyer, escrow ensures that the seller has received the full purchase price before they have to hand over the keys. 

For the seller, escrow provides protection in case the buyer backs out of the sale or fails to meet their obligations under the contract. By using escrow, both parties can have peace of mind knowing that their interests are protected.

Short Sale

A short sale is a real estate transaction for the purchase of a home before it is foreclosed upon. It occurs when the owner owes more on the mortgage than the current market value of the home. A short sale lets you clear a loan even if you get less than you owe on the mortgage. The lender agrees to accept a payoff that is less than what is actually owed on the mortgage. 

This process can be lengthy and complicated, so it’s important to have a real estate agent who is experienced with short sales. Buyers should also be aware that short sales can take months to complete, and there is no guarantee that the lender will approve the sale. However, if you are patient and work with a knowledgeable agent, a short sale can be a great way to get a property at a discounted price.

Broker

A broker is someone who helps facilitate the sale of property, usually in return for a commission. In most cases, the broker will be working on behalf of the seller, although there are also buyer’s brokers who work with buyers to find suitable properties. Brokers typically have a wide network of contacts and can be a valuable source of information on the local market. They may also be able to provide advice on pricing, marketing, and negotiation. For these reasons, it is important to choose a broker carefully and to make sure that you are comfortable working with them. These are just a few of the many terms you may encounter when selling your home. By understanding these terms, you will be able to make more informed decisions and protect yourself throughout the process.

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