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Ready to sell your home, but feeling lost in a sea of confusing terms? My Home My Sale is here to break down these Real Estate Terms and help you to navigate the selling process with confidence! This cheat sheet is your roadmap to understanding the lingo and making informed decisions.
Offers and Contingencies:
Contingency Offer: These offers come with "ifs" and "buts." Think of them as "maybes." The buyer commits to buying if certain conditions are met, like securing financing or a satisfactory home inspection. This can delay your timeline, but having multiple contingent offers strengthens your negotiating power.
Multiple Offers: Jackpot! Receiving multiple offers means buyers are fighting for your house. Use this to your advantage – negotiate for a higher price or better terms.
Backup Offer: Don't put all your eggs in one basket. A backup offer acts as a safety net if your primary offer falls through.
Blind Offer: Imagine a buyer falling in love with your home before even seeing it! This can happen in hot markets, and while risky, it can also lead to a quick sale.
Financial Jargon:
Earnest Money: This is like a "commitment deposit." The buyer shows they're serious by putting down some cash, which goes towards the down payment if the sale goes through. Think of it as your security blanket.
Closing Costs: These are your "moving on" fees like title insurance and transfer taxes. Be prepared to split these with the buyer, depending on your negotiations.
Escrow: Think of it as a neutral third-party babysitter holding your keys and money until the sale is finalized. This ensures everything goes smoothly and fairly.
Close of Escrow (COE): Pop the champagne! This is the official handoff day. Ownership switches to the buyer, and you receive your payout.
Points: Don't confuse these with loyalty rewards. Points are upfront fees the buyer pays the lender to lower their interest rate. It's like "buying down" the rate for a cheaper monthly payment.
Down Payment: This is the buyer's chunk of the purchase price paid upfront, typically 20% but can vary. A higher down payment means less loan needed, potentially bringing you a better offer.
Home Repairs and You:
Buyers May Request Repairs: Be prepared for buyers to ask for fixes based on the home inspection. This could be anything from minor touch-ups to major repairs.
Impact on Offers: Fixing requested repairs can strengthen your offer, but remember, it's a cost-benefit analysis. Weigh the repair cost against the potential increase in selling price.
Negotiation Tool: Use requested repairs as a negotiation tool. You can offer to fix some, contribute financially towards others, or simply counter-offer with a lower price reflecting the needed repairs.
Bonus Terms:
Comparables (Comps): These are your selling cousins! Think of similar properties that help estimate your home's fair market value.
Home Inspection: A professional gives your home a health check, identifying potential issues that might affect the sale. Don't panic – use it as an opportunity to address any concerns before buyer negotiations.
Appraisal: This is like getting your home's worth stamped by an expert. An official valuation by a licensed appraiser is often required for financing and helps ensure a fair sale price.
Title Insurance: Think of it as peace of mind for everyone involved. This protects both you and the buyer from any hidden ownership claims or disputes.
Remember, understanding these terms helps you to navigate the selling process like a pro. My Home My Sale is here to be your jargon-busting guide every step of the way. Feel free to contact us with any questions, and we'll be happy to help you sell your home with clarity and confidence!
-My Home, My Sale
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