Learn Real Estate Terminology
Popular Real Estate Terminology that you should know
An appraisal is an assessment of the value of a property conducted by a licensed appraiser. It determines the fair market value based on various factors such as location, size, condition, and recent sales of comparable properties.
Amortization refers to the process of gradually paying off a loan through regular payments over a specific period. Each payment includes both principal and interest, with the goal of fully repaying the loan by the end of the term.
3. Assessed Value:
The assessed value is the value assigned to a property by a tax assessor for the purpose of calculating property taxes. It may not necessarily reflect the current market value.
4. Adjustable-Rate Mortgage (ARM):
An adjustable-rate mortgage is a type of mortgage loan with an interest rate that can fluctuate over time based on a predetermined index. The interest rate may change periodically, often after an initial fixed-rate period.
In real estate, agency refers to the relationship between a client (buyer or seller) and their real estate agent. It outlines the duties, responsibilities, and obligations of the agent towards their client.
A real estate agent is a licensed professional who represents buyers or sellers in real estate transactions. They help clients navigate the buying or selling process, provide market expertise, and negotiate on their behalf.
When a property is listed “as-is,” it means the seller is offering it in its current condition without making any repairs or providing warranties. Buyers are responsible for inspecting the property thoroughly before making an offer.
Assumption refers to taking over an existing mortgage by a new buyer. The buyer assumes responsibility for the outstanding loan balance, interest rate, and terms from the original borrower.
An appurtenance refers to a right or privilege associated with a property that transfers with the property but is not necessarily a physical part of it. Examples include easements, water rights, or shared amenities.
10. Annual Percentage Rate (APR):
The annual percentage rate is the total cost of borrowing expressed as an annual rate. It includes the interest rate, fees, and other charges associated with obtaining a loan, providing a more comprehensive picture of the borrowing cost.