Homebuyer’s Glossary

by: Collen

10 months ago

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Certainly! Here’s a glossary of common real estate terms to help buyers understand the jargon used in the industry:

**Appraisal:** A professional assessment of a property’s value, typically conducted by a licensed appraiser.

**Buyer’s Agent:** A real estate agent who represents the buyer’s interests in a real estate transaction.

**Closing:** The final step in a real estate transaction where all documents are signed, and ownership of the property is transferred to the buyer.

**Closing Costs:** Fees and expenses associated with the closing of a real estate transaction, including title insurance, attorney fees, and lender charges.

**Contingency:** A condition that must be met for a real estate contract to be binding, such as a satisfactory home inspection or financing approval.

**Deed:** A legal document that transfers ownership of a property from the seller to the buyer.

**Earnest Money:** A deposit made by the buyer to demonstrate their serious intent to purchase the property.

**Escrow:** An account where funds are held in trust until the closing of a real estate transaction.

**Fixed-Rate Mortgage:** A mortgage with a constant interest rate throughout the life of the loan.

**Home Inspection:** A thorough examination of a property’s condition, typically conducted by a licensed home inspector.

**Listing Agent:** A real estate agent who represents the seller and lists the property for sale.

**Mortgage Pre-Approval:** A lender’s confirmation that a buyer qualifies for a mortgage loan up to a specified amount.

**Multiple Listing Service (MLS):** A database used by real estate professionals to list and search for properties.

**Offer:** A proposal by a buyer to purchase a property, including the purchase price and terms.

**PITI:** An acronym for Principal, Interest, Taxes, and Insurance, which are the components of a monthly mortgage payment.

**Title Insurance:** Insurance that protects the buyer and lender against any defects in the property’s title.

**Closing Disclosure:** A document that outlines the final terms and costs of the mortgage loan, provided to the buyer three business days before closing.

**Escrow Agent:** A neutral third party responsible for holding funds and documents during a real estate transaction.

**Homeowners’ Association (HOA):** An organization that manages and enforces rules in a planned community or condominium complex.

**Lien:** A legal claim on a property to secure a debt, such as a mortgage or unpaid property taxes.

**Prepayment Penalty:** A fee imposed by a lender if a borrower pays off a mortgage loan before the specified term.

**Appreciation:** An increase in the value of a property over time.

**Seller’s Market:** A real estate market where there are more buyers than available properties, leading to higher prices and increased competition.

**Buyer’s Market:** A real estate market where there are more properties for sale than buyers, potentially leading to lower prices and favorable terms for buyers.

**Dual Agency:** When a real estate agent represents both the buyer and the seller in a transaction, which can present conflicts of interest.

Understanding these common real estate terms can help buyers navigate the homebuying process with confidence and clarity.

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Collen

Colleen O'Hara, a proud South Jersey native, has spent most of her life in this charming region. For over 19 years, she has called Moorestown, New Jersey, her home, and her deep roots extend to her time living and studying in Philadelphia. Colleen's real estate journey began in home staging, where she mastered the art of transforming spaces. This passion led her to become a licensed real estate agent in both New Jersey and Pennsylvania, dedicating nearly 14 years to the industry. Colleen's motivation doesn't stem from awards but from the joy she finds in various aspects of her profession. She loves guiding clients as they embark on the exciting adventure of finding their dream home and witnessing their happiness envisioning a life in their new space. She also takes pride in seeing distressed properties evolve into vibrant homes that shine in the neighborhood. With a diverse clientele, including personal buyers and sellers, developers, and investors, Colleen offers comprehensive guidance. Additionally, she hosts the nationally acclaimed TV show "The American Dream," highlighting the positive aspects of local lifestyle and culture. As Colleen and her husband enter the empty nest phase in Moorestown with their three dogs, they remain dedicated to supporting their four children in their journey into adulthood. Colleen's passion for connecting with people and making a difference makes real estate a natural fit, and she looks forward to many more years in the industry. Consider Colleen O'Hara as your trusted real estate partner for a unique journey in the world of real estate.