Sellers Glossary

Affidavit: a statement a buyer or a seller signs to state that certain information is accurate such as the seller signing to ensure that he or she is the property owner

Appreciation: an increase in a property’s value

Asking Price: the property’s price that is stated by the seller

Assessed Value: the value of the property that is decided by an assessor and/or public official

Asset: an item with a value that is measurable

Back on Market: when the real estate is put on the market again after it was removed for a temporary period of time

Building Code: a regulation that covers a building’s design, construction, and materials with safety standards

Capital Expenditure: an improvement to a property that has a life of one year or more than one year and can increase the property’s value

Certificate of Occupancy: a document provided by an agency that indicate a property abides by local codes, ordinances, and regulations

Clear Title: a property title that lacks defects; it indicates a property can be marketed

Closing Costs: the costs, including title insurance, legal fees, and a survey, to finish transferring a property’s ownership

Commission: the money that is given to a real estate agent for his or her association with selling the property

Commission Split: the percentage of the commission that is divided between a brokerage and the agent or broker for the transaction

Comparative Market Analysis: a method to evaluate a property by comparing it to similar homes in the area that were recently sold or have been recently offered for sale

Counter Offer: a new offer based on factors like price and terms that is a response to an offer that was not accepted

Days on Market: the total number of days a property has been available for sale on the market

Deed: a document that indicates the owner of a property, along with factors including the current owners’ signatures and a description of the property

Depreciation: a decrease in a property’s value

Equity: the property owner’s interest in his or her property

Escrow: a process in which a third party takes care of funds and documents for a buyer and/or seller

Estate: a person’s ownership interest in a real property

Fair Market Value: a property’s price based on a buyer and seller both having an understanding of the real estate market and similar properties

Firm Price: an asking price that cannot be negotiated

Ground Lease: the lease of land is that vacant

Home Inspection: an inspection of the property to check for factors like the quality and safety of the property

Lien: a legal claim of ownership on a home’s title and a security for money owed

List Price: a real estate property’s price that is made via a listing agreement

Listing Agent: an agent who is representing a seller for the transaction of property

Listing Appointment: a meeting in which a sales agent talks to the potential buyers of a proper to make a listing agreement

Market Value: an amount that a buyer would be willing to pay for the property and an estimated price based on the real estate market

Mitigation: alterations and improvements to a property

Offer: a proposal to buy a property with a certain price and on certain terms

Offer Accepted: when a property owner agrees to and accepts a purchaser’s offer and terms

Open House: the time in which a property is available for interested buyers to view

Ordinance: a law by a local government

Preview Appointment: a time in which the agent alone checks the property to decide if it qualifies based on the buyer’s needs

Property Survey: a survey to understand a property’s boundaries

Purchase Offer: the document that indicates another’s offer to buy a property

Sales Contract: a contract between the buyer and seller of a property that provides details such as what a purchase consists of and the closing costs for the property

Seller’s Market: a situation in which there are more buyers than there are sellers in the market

Staging: placing furniture and accessories within a house to prepare it for a sale

Temporarily off Market: a small time period in which a real estate property has been removed from the market

Title: the evidence that shows the legal right of a person to own a property

Title Defect: an outstanding claim on the property that is restricting its sale or the ability to be marketed

Transfer Taxes: the state and/or local taxes toward transferring a property

Under Contract: a real estate property that currently has been accepted in a contract by a seller and a buyer

Walk-through: the last property inspection to make sure items in a purchase agreement, like repairs and property electrical systems, are working properly

Zoning Laws: the local laws that regulate how a land is used in certain zones with factors that include the size of a lot and the way a building is used

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