Real Estate Terms Every Homebuyer Should Know

Whenever you want to buy any house, you find yourself in the whirlwind of real estate. It isn’t easy to understand a market you haven’t been into all of a sudden and handle every work related to it without help. Even when you collaborate with a real estate agent, there are certain things you should know beforehand. This includes a glossary of terms used in real estate.

There is no need to comprehend these terms in depth or understand their technical aspects. All you have to do is know the basic details of the words or phrases and what they are presented in reality. It may happen that the word or term was used in front of you sometime during the negotiation. And due to the lack of understanding, you should have judged the situation properly. Keeping this in mind, let us delve into the common real estate terms every home buyer must know.

Here Are Some Essential Real Estate Terms

• Adjustable Rate Mortgage
• Appraisal
• Contingency
• Hazard Insurance
• Multiple Listing Service
• Title Report
• Zoning

Adjustable Rate Mortgage

An adjustable-rate mortgage is a loan given to home buyers where the interest rate might fluctuate according to a key market indicator. For example, the key indicator can be the total number of stocks in the real estate market in a certain zone.

According to the central government bill, it can also be the funds collected in the treasury in a certain week. Since there is no limit for the fluctuations, most financers ensure to define the maximum window for the fluctuations of interests to be applied in the mortgage loan.

Appraisal

When you need any loan against your house, you must submit an appraisal value to your financial institution. It is a very common term used in real estate Jaipur and will only be accepted with the sign-off from a legal and genuine appraiser.

Now, an appraiser is a professional who is expert in that geographical area of the house and understands the examination reports or the factors on which they have to be prepared. Once the examination report is done, an appraiser will compare the initial cost price of the house with the current market sale price to make an opinion about the appraisal value.

Contingency

Sometimes you can find that your home purchase contract has a contingency event mentioned within the terms and conditions.

For example, it may be said that if the buyer finds any fault in the property after a quality check inspection report is submitted and all the parameters are given a green signal, the buyer can demand a refund from the seller or the contractor from whom the property was bought in the first place.

Therefore, contingency is a real estate terminology determining an event where the terms and conditions explained in a home purchase contract will be voided.

Hazard Insurance

This is one of the common real estate terms. True to its name, hazard insurance will protect the property from any damage, including fire, earthquake, flood, etc. Suppose any part of the property gets damaged due to a natural calamity or man-made accident. In that case, the home buyer can claim the insurance money to restore the property to its original condition.

Multiple Listing Service

Another common real estate terminology that home buyers must know is multiple listing service. It means that the details of a certain property are uploaded automatically on multiple realtor sites where property listing is done.

It is an automatic process, and the types of realtor websites where the property details and other information pieces are uploaded depend on the package chosen by the seller.

Title Report

A title report is a written analysis that describes the entire property and includes the titleholders’ names, the type of relationship between the title holders, taxation on the property, deeds of trust and mortgages, and the total tax due. It is mainly required when a mortgage has to be taken for buying a property in India without the involvement of equity share in the same.

Zoning

Zoning defines a set of protocols and laws that control the size of each real estate property within a particular area or locality as partitioned by the local laws.

Conclusion

In this article, we have briefed about some of the most used terms in real estate worldwide. If you want to know the details of these terms and their utility in different use cases, you can connect with the experts at KGK Realty.