When you decide to invest in any field, you must know all the terms for this field Especially in real estate as it contains several terms whether you’re buying or selling a house, so take your time to understand the real estate terms well to get a successful investment.
We created this article to help you know the most important real estate terms and it is represented in:
This term refers that the customer’s mortgage of his home with a variable interest rate to get a loan or financial liquidity.
This term means that the mortgage lender sends an appraiser to make sure the value of a piece of real states is worth the amount of the loan or not.
Comparable or comp
Comparable is meaning a real estate prices. Usually, the customers study the unit prices of an area and compare them with each other, then They conclude from this comparison to know the current prices of real states.
Comparative market analysis
This term means that agents and brokers creating a report include the prices of similar real estate in the same area. the aim is to help sellers to set the prices of their properties and buyers to offer competitive and special prices
It’s a condition in a business contract that must be met to make a deal successful.
It’s a legal agreement between the seller and the buyer which All details relating to the deal are clarified.
It is a term used by realtors to express the sophistication and beauty of real estate.
He is one who manages all transactions between seller and buyer, It manages and executes all transactions between seller and buyer, facilitating the buying and selling process,And It is very important to choose a real estate agent as a person or company with a good reputation and great experience.
This term refers to a decrease in the loan ratio because the customer paying the specified and agreed installment.
This term refers to the value of a piece of real estate to determine its property tax rate in other words, it means Valorem tax.
It’s the percentage of your monthly income that mortgage lenders use to determine borrowing risk.
It’s to represent the seller and the buyer in one transaction or when the real estate company represented the buyer and seller in a purchase.
A down payment
It’s the amount of money that buyers paying it in several stages as a part of a real estate deal, and it’s also a guarantee for mortgage lenders.
A sum of money you put in to prove your seriousness to make this deal, sometimes acts as a deposit of the piece of real estate you are looking to buy it.
It’s a sum of money you owe to the lender that holds the mortgage, in other words, equity is meaning what you get after the Repayment of the mortgage.
Exclusive Right to Sell agreement
It’s a commission paid by the landlord to the agent, regardless of whether the property was sold by the agent or not.
The legal procedure is followed by a lender in case the customer is unable to repay the loan, in which case the lender is allowed to take the mortgage and sell it.
A mortgage loan managed by the Federal Housing Administration (FHA loan) provide by a bank or other agency-approved lender.
The fixed-rate mortgage is meaning that during the term of the mortgage interest is paid at a fixed rate.
Fixed-rate mortgages are useful for people who want to know the installment amount each month.
H Home Appraisal
It’s the appraiser who makes sure the value of a piece of real states is worth the amount of the loan or not, and sometimes the appraisal is made by the mortgage lender.
It’s the lender’s job to make sure the property’s quality In other words, it’s a general condition check.
It is the profit that accrues to the mortgage lender in exchange for the loan that he gave to the customer, measured as a percentage.
Open Listing is used frequently and it indicates that the seller can deal with multiple agents to sell the property.
It is for the agent to allow the visit of the property without a specific time, for a specific period.
It’s a term that refers to properties that are for sale but not advertised to agents or buyers.
It’s a term commonly used by investors and lender to mean the total amount borrowed in a mortgage.
Residential properties are apartments, villas, houses or Or housing units inside the compound.
It’s an advertisement the owner posts for sale or rent the proberty.