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September 23, 2019
When selling your property, it is important to understand several real estate terms. If you aren’t a real estate industry regular, than these terms may seem unfamiliar to you. That is okay–as long as you are familiar with these terms, you’ll be able to successfully navigate the sale of your property. You want to make sure that you understand things like escrow, equity, and due diligence. You probably already understand what showcasing (your property to new prospective buyers) means. You also probably understand what renovation means.
So let’s dive into the more complicated real estate terms.
An appraisal is when a professional determines the market value of your home. Typically, before you can take out a mortgage, the mortgage lender will send an appraiser to the property. The appraiser will determine if the property is worth the value of the loan, so that all parties are fully protected during the transaction. Appraisals are absolutely critical to the home sale process, and you need to understand how they work.
When your offer to buy a home is accepted, then you’ll need to send a portion of the money to escrow. Escrow is a third party, which is often unbiased, which holds the money until a transaction is complete. Once the transaction is finalized, the money is released and the deed is transferred. Escrow agents often hold other documents as well, such as loan documents, and title insurance.
Equity is a critical term for sellers and buyers. The equity you own in your home is the market value of the property less any existing obligations. Thus, if you bought a home for $300,000, and your mortgage has been paid down to $100,000, then you have $200,000 in equity. The more equity you build, the stronger your financial options will be. More equity allows you to finance loans for repairs or renovations.
Closing is the finalization of the home sale process. During the closing period, homebuyers typically do due diligence on things like home inspections. All the paperwork is finalized during this period as well, and the two parties will exchange the deed and the keys of the property. All money in escrow is released at this point, and the sale process effectively ends. Closing also entails certain costs, such as taxes and loan fees.
Worried about going through the traditional selling process? Worried about how you are going to showcase your home to new buyers, or how you are going to handle all of the aspects of repairing and renovating your home? The good news is that you don’t have to worry about any of this. You can sell your property to 4 Brothers Buy Houses and get the cash you need right away. Avoid the expensive and lengthy traditional selling process and sell your property on your terms. You can get a free, no obligation quote at any time. Call us today.