Throughout the homebuying process, you’ll encounter unfamiliar jargon that industry professionals don’t even think twice about using. If you’re starting a search or entering negotiations, you want to understand what your agent or other parties mean by the general real estate terms thrown around. 

Can you translate the conversation to avoid interrupting a deal? If not, HomeCraft Team shares real estate terms useful for buying or selling a home in Plymouth, Michigan, or anywhere else. Decode your real estate agent using the glossary below. 

What Is Real Estate?

The term real estate commonly refers to the buying and selling of property. The experience is anything but straightforward since a property changing hands has various implications.

Real estate players include the following:

 

  • Real estate agent: Helps clients buy or sell properties at a fair price. 
  • Broker: Holds a managerial position within a real estate company.
  • Borrower: Borrows money for a home purchase from a financial entity. For example, whether you’re buying a condo or one of the new ranch homes in Plymouth, MI, you may need to borrow money to cover the required down payment.

Understanding General Real Estate Terms

What are some of the most frequently used terms in the real estate industry? 

 

  • Contingency: Before accepting an offer or signing a deed, you want the other party to meet some contingencies. A legally binding contract depends on these conditions.
  • Deed: As the legally binding document that transfers ownership from one person to another, the deed of sale puts your name down as the official owner of the house.
  • Due diligence: These checks take place before signing a contract. For example, you might research the property’s roofing or pipe system before agreeing to purchase it. 

Decoding Financial Real Estate Terms

Next, let’s explore some common financial terms that often come up for home purchasing. 

 

  • Amortization: This term refers to the tracking of your mortgage payments over time. 
  • APR: The annual percentage rate shows how much your loan costs you each year. 
  • Jumbo loan: These loan sums are often bigger than the home’s selling price.
  • Balloon payment: When you pay the final amount owed on your loan in a single sum, you make a balloon payment. 
  • Bankruptcy: If you can’t repay your debts, you file for bankruptcy. Legally, bankruptcy carries hefty consequences for your financial health. 

 

 

Navigating Listing Real Estate Terms

Have you been browsing properties or uploading your property on a selling platform? These listings often include the following general real estate terms:

 

  • Appraisal: Determines a property’s value following extensive inspections and reports. 
  • Conventional sale: Refers to selling properties with no further mortgage payments owed on them.  
  • Comparable sales: Indicates the price listed for a property based on similar properties in the area. Since selling agents determine the value based on comparisons, they refer to it as a comparable sale.
  • Foreclosure: When a property owner can no longer make mortgage payments, the loan forecloses.

Making Sense of Offers and Contingencies

If you’re already playing the real estate game, there’s probably a lot going on. Discover the language frequently used during the selling process below.

 

  • Back-up offer: Sometimes, a property you want already has a desirable offer on the table. Why not make a back-up offer on another property you like in case the first falls through?
  • Blind offer: If you make an offer on a property without viewing it, you’ve made a blind offer. 
  • Seller concessions: Some sellers increase their pool of buyers by sweetening the purchase deal. These perks are called seller concessions. 

Exploring Types of Homes With HomeCraft Team

How can HomeCraft Team help you today? Our extensive real estate expertise may come in handy if you’re thinking about purchasing one of the following types of properties in Michigan:

  • Townhouses: These properties typically have multiple levels in a tall but compact building that’s often within a complex.
  • Historical homes: Homes with historical significance or antiquated architectural styles often carry added value among buyers.
  • Single-family homes: These houses are large enough to comfortably house one family. They aren’t connected to other buildings. 
  • Luxury homes: Custom features and premium materials make luxury homes desirable.

Partnering With HomeCraft Team for Your Real Estate Needs

Whether you want to learn general real estate terms or explore our current listing, the HomeCraft Team can help. Call 734-531-7493 today!