Real Estate Lingo

The real estate world has a language of its own and it’s time for you to learn. We have a list of some common words that your realtor will be using and you need to know. Here is a list of 10 words that you need to know today.

• Seller Disclosure
• VA Loans
• Assessed Value
• Closing Costs
• Seller’s Representative
• Appreciation
• Title Insurance
• Closing
• Buydown
• Escrow

1. Seller Disclosure– A disclosure by the seller of information about the property, or which could affect a buyer’s decision to purchase the property, all of which to the best of the sellers knowledge.
2. VA Loans– The VA loan is a loan guaranteed by the government (Department of Veteran Affairs) and available to the military, active and retired, and even for some eligible spouses, at low-to-no-down payment scenarios with competitive rates and fees.
3. Assessed Value– The value that a taxing authority places on a real or personal property for the purpose of taxation.
4. Closing Costs– Money paid by the borrower in connection with the closing of a mortgage loan. This generally involves the origination fee, discount points, appraisal, credit report, title insurance, survey, and prepaid items such as tax and insurance escrow payments.
5. Seller’s Representative– The seller’s representative, or listing agent, is hired by and represents the seller. All fiduciary duties are owed to the seller, meaning this person’s job is to get the best price and terms for the seller. The agency relationship usually is created by a signed listed contract.
6. Appreciation– When a properties value increases because of various reasons like inflation or changes in market conditions.
7. Title Insurance– An insurance policy that protects a lender’s or owner’s interest in real property from assorted types of unexpected or fraudulent claims of ownership. It’s customary for the buyer to pay for the lender’s title insurance policy.
8. Closing– the consummation of a real estate transaction. The closing includes the delivery of the deed, financial adjustments, the signing of notes, and the disbursement of funds necessary to complete the sale of the loan transaction.
9. Buydown– money advanced by an individual (builder, seller, etc.) to reduce monthly payments for a home mortgage either during the entire term or for an initial period of years.
10. Escrow– A procedure whereby a disinterested third party handles legal documents and funds on behalf of a seller and buyer.

Using these words not only will impress your realtor, but you will impress yourself as well. If you have questions or want to know more details of the real estate lingo, let us know down in the comments.