If you are new to the home buying or selling process, there are key terms you should learn to better understand every step of the way. The more you know, the better your real estate agent can help you along the journey to make the best decisions for you. Here are five beginner real estate terms to get you started!
Home Value Report
Also known as a Competitive Market Analysis (CMA), this report helps you understand how much your home is worth. A realtor performs the analysis and bases it on the price of similar homes recently sold in your area. Other factors that influence your home’s estimated value include the condition, layout, and features that set it apart from others in the current market. Real estate agents use the report to guide their clients in listing their homes at the right price.
Showing and Open House
A showing occurs when a buyer’s agent makes an appointment for their clients to privately tour the seller’s home. This allows for a more intimate and detailed tour of the potential home so buyers can ask all their questions. An open house, in comparison, is open to the public for any buyers to stop by and walk through the home at their leisure.
Staging is exactly what it sounds like, “setting the stage” for the potential buyer to picture their life in your home. An interior designer comes into the house to rearrange or purchase new furniture and decor pieces to liven up the space. A more cost-effective option is for the sellers to work with their real estate agent to declutter and depersonalize the space. This includes putting away or hiding personal photos and memorabilia. The ultimate goal is to create a space where buyers can enter and see themselves happily living.
Offers are the exciting part of both the home selling and buying processes. When a buyer is interested in purchasing a home, they put in an offer to the seller. Each offer includes the amount the buyer is willing to pay for the home and any additional requirements the buyer would like. Sellers do not have to accept the first offer they receive. They can wait for multiple offers or make a counteroffer to the buyer. This is the main piece your real estate agent will advise you on to accommodate your needs and increase the likelihood of the buyer accepting the offer.
Closing occurs when you close a deal and officially purchase or sell a home. It is the final step in the process, typically lasting an average of 50 days. You should be prepared to sign a lot of paperwork and have patience. This portion can be time-consuming, and many parties work together to complete the deal. Finally, the property is transferred from the seller to the buyer, and the buyers can officially begin to move in.
Both the home buying and selling processes can seem overwhelming at first, especially with the terminology surrounding them. But you don’t have to walk through the process alone. Call me today at 717-253-3259 and receive a free home evaluation to get started.