Many of us are at a loss for words when it comes to understanding real estate terminology. Knowing how to properly communicate with realtors will give you an edge as you emerge into the housing market. Familiarize yourself with these terms and you will be talking like a pro in no time!
- Appraisal: A process of assessment that determines the market value of a property.
- “As Is” Condition: The property is being offered in its present state, meaning that the seller is not willing to make any repairs. [You can often assume that this means the property needs some type of maintenance repair. Think dollar signs!]
- Buyer’s Market: When there is a higher number of homes than buyers in the market. [Typically, this causes home prices to drop and remain on the market for longer periods of time. Buyers usually have more leverage to negotiate property prices under these circumstances.]
- Closing Date: The date of which the sale of the property becomes final and the new owner takes possession.
- CMHC: The Canadian Mortgage & Housing Corporation provides mortgage loan insurance to Canadian homebuyers and encourages the improvement of housing for all Canadian citizens.
- Firm Offer: An offer to purchase a property with no conditions.
- Mortgage: A loan to purchase a home, typically from a bank.
- Interest: The cost of borrowing money over a period of time and then paying it back to a lender in installments along with repayment of the principal loan amount.
- Realtor: A trademark name for a real estate agent who is a member of an organization responsible for buying and selling real estate.
Be sure to review this list before your next meeting with your real estate agent and you will be speaking like a pro in no time! Good luck!