If you are looking to purchase real estate, you may encounter confusing terminology, which will leave you completely lost. Property listings usually include different numbers as well as marketing jargon, offering excessive information. Hence, it is important to learn about a few terms today.
This is a crucial number that you must pay attention to when finding the apt REALTOR®. The percentage is computed based on what a home was first listed for, divided by the actual sale price. If the number is very closer to 100, the agent is a good alternative. In case the number is low, it is possible that their listings are usually very high.
Median Days on Market
On market, the median days involve the midpoint of the number of days it took for homes in that specific region to sell. In case it is determined to be 30 days, then one half of the homes were sold quicker, while the rest took sometime longer than 30 days. In case you compare the real estate that is being considered to the particular area’s median days on market, and you learn that it was on for a longer period, the sellers could be ready to take on a lower offer.
A property that is listed as distressed is basically when the owners have defaulted on their loans or may do so soon. When you are a buyer, you could enjoy a good deal on a short sale or a foreclosure, since the banks typically list them less than the market value in order to try and recoup a little bit of their loss.
An Active Versus Pending Status
In case you find your dream home and see that it comes with a pending status, you may be looking at some disappointing news. On a home, an active status basically means that the owners are accepting offers, and a pending status denotes that an offer has already been accepted by them already. In case you know that the house is right for you, you can still place a bid, if the first offer falls through.