1. **Asking Price**:
The price that the seller has agreed to list their property for. The asking price differs from the selling price, which is the final amount agreed upon by both the buyer and seller.
2. **Balanced Market**:
A market condition where there is an equal balance of buyers and sellers. In this scenario, reasonable offers are often accepted by sellers, homes sell within a reasonable time frame, and prices remain stable.
3. **Bridge Financing**:
A short-term loan designed to bridge the gap for homebuyers who purchase a new home before selling their existing one. This type of financing is common in a seller's market, allowing buyers to purchase without having to sell first.
4. **Buyer's Market**:
A market situation where there are more homes available than there are buyers. This gives the limited number of buyers more choices and greater negotiating power. Homes may remain on the market longer, and prices can be stable or declining.
5. **Chattels**:
Unattached items in a home that can be removed without causing damage to the property, such as curtains (but not curtain rods, since they are attached to the home). Chattels are usually not included in the home purchase unless specified in the Agreement of Purchase and Sale.
6. **Closing**:
The final step in the home-selling process. Once all conditions outlined in the Agreement of Purchase and Sale have been met, ownership of the property is transferred to the buyer at the end of the closing period, and the keys are exchanged on the closing date specified in the offer. Dates may vary by location, so be sure to ask your real estate agent.
7. **Contingencies**:
Conditions upon which the sale of a home depends, such as "conditional on financing" or "conditional on a satisfactory home inspection." Or the sale of the buyer's current home...
If these conditions are not met, the buyer can back out of the deal.
8. **Counter Offer**:
When the seller rejects the original offer to purchase a home, they may make a counteroffer with adjustments. Like they bring you an offer with their preferences...usually regarding the price or terms of the sale, such as the closing date.
9. **Curb Appeal**:
The wow-factor of a home when viewed from the curb. This includes the home's exterior, front yard, and anything else visible from the street.
10. **Current Market Assessment (CMA)**:
Provided by your Realtor during the listing process, a CMA helps determine the asking price of a home. It uses current housing market information such as supply and demand, seasonality, and specific home details like location, age, and square footage.
11. **Fixtures**:
Items that are physically attached to the home and require tools to remove. Fixtures are automatically included in the purchase. Examples include ceiling lights, cabinet hardware, dishwasher. If the seller intends to take any fixtures when they move, they should either remove them before listing the home or specify them in the Agreement of Purchase and Sale.
12. **FSBO**:
An acronym for "For Sale By Owner," referring to a seller who has not hired a licensed real estate agent or broker to assist with the sale of their home.
13. **Home Value Estimator**:
An online tool that helps home sellers estimate the value of their property. The result is an estimate and is different from a detailed CMA provided by a real estate agent.
14. **MLS**:
The Multiple Listing Service (MLS) is a database established by cooperating real estate brokers to provide data about properties for sale.
15. **Offer**:
A legal agreement to purchase a home. An offer can be conditional based on several factors, commonly on financing and a home inspection. If the conditions are not met, the buyer can cancel the offer.
16. **Seller's Market**:
A market condition where there are more buyers than homes for sale. In a seller's market, homes typically sell quickly due to high demand. Prices are likely to rise, and there may be multiple offers on a home, giving sellers enhanced negotiating power. Conditional offers might be rejected.
17. **Staging**:
The process of preparing a home for sale to appeal to a broad range of homebuyers. This often involves decluttering, depersonalizing, deep-cleaning, and making minor updates such as painting and rearranging furniture.
