Here are five real estate terms you should know in order to avoid miscommunication when buying or selling your home.
Good-Faith Estimate
Most clients see a good-faith estimate as a magic number that tells them what they’ll need in order to close. However, it is important to make sure you are paying attention to the word ‘estimate’. Good-faith estimates can vary drastically when it comes to closing time so it is important to save with some cushion in mind in order to ensure your deal doesn’t fall apart at the end of the road.
Pre-Approval
Too often buyers believe that a pre-approval is equivalent to money in their hand. It’s important to remember that changes in your spending habits or in the housing market can affect your ability to close. Remember that the loan is not official until you close, so be sure to conservative with your credit until that time comes.
The “Comp”
A “comp” is a comparable property that is helpful when it comes to determining appropriate pricing. It’s important to understand the difference between a ‘comp’ and a Comparative Market Analysis (CMA). A CMA takes into account more factors than a ‘comp’, so be wary of leaning on sites like Trulia for pricing advice from various ‘comps’. Be sure to talk to your agent about their pricing strategy!
MLS
MLS stands for Multiple Listing Service and many sellers believe it’s a magical place where properties go to get sold. In order to make sure you don’t misunderstand what MLS entails, have your agent show you their entire marketing plan for your property to ensure it is up to your standards.
Agent
Many people hire agents without fully understanding what agents are doing for them. Ask to see recommendations and positive reviews from your agent as well as their marketing plan and other positive resources to see what exactly they are bringing to the table.
At Wilson Realty Group we are experts in communicating and decoding the language of real estate. Contact us today we’ll be sure to answer all of your questions. Let’s get started!