The Importance of Understanding Home Selling Terminology

Selling your home is a complex process. From the moment you put the property on the market until the final closing, you must navigate a labyrinth of contracts, disclosures, and other paperwork peppered with unfamiliar terminology. Unfortunately, not understanding these terms can mean higher costs and other problems down the road. 

Here, the HomeCraft Team explains selling home terminology that will likely come up during the transaction. 

Key Terms in Home Selling

If you feel the home sale process requires learning a foreign language, this glossary of key terms will help:

  • Listing. Although most people think of the listing as the advertisements they see for homes, it actually refers to the agreement between a home seller and the agent to market the home for sale. It details the length of the listing period, the commission agreement, and whether the contract is open or exclusive to a single agent.
  • Closing costs. Closing costs are the expenses you pay at loan closing that cover the costs to create the home loan and complete the transaction. They can include fees for appraisals, attorneys, title searches, and escrow, typically amounting to 3% to 6% of the mortgage amount. These costs are in addition to the down payment.
  • Contingencies. The home seller or buyer can include contingencies or conditions in the contract. For example, the buyer may submit an offer contingent upon a home inspection or the sale of their existing home or ask the seller to cover closing costs. Either party can cancel the agreement if the other doesn’t meet the conditions.
  • Deed. The legal document that lists who owns a house or property. When you buy a home, the deed of sale lists you as the new owner.

HomeCraft Team’s Role in Plymouth, MI Real Estate

An experienced real estate agent can help you navigate the home sale process and explain selling home terminology. The HomeCraft Team are leaders in Plymouth, MI, real estate and have decades of experience and expertise to make the process as clear and streamlined as possible. 

Choosing the HomeCraft Team means you gain valuable insights into the local real estate market and learn the best ways to position your property for a fast and lucrative sale. From start to finish, they are on your side as trusted advisors.

Advanced Selling Home Terminology

Need additional help with common financial terms in home selling? 

  • Escrow. Escrow is a holding account that retains funds until all parties meet specified conditions, such as completing the purchase agreement. Escrow accounts hold good faith money while the transaction is in process. It also holds funds to pay property taxes and insurance throughout the life of the mortgage.
  • Fixed-rate mortgage. A fixed-rate mortgage that has the same interest rate for the life of the loan.
  • Variable-rate mortgage. A variable- or adjustable-rate mortgage has an interest rate that changes based on the current interest rate the Fed sets.
  • Points. These fees cover interest charges in exchange for a lower mortgage interest rate. Each point is 1% of the loan. 


Practical Tips from the HomeCraft Team for Selling Your Home

Knowing basic home selling terminology can help you sell your home faster and with fewer hassles. The HomeCraft Team knows what buyers are looking for and will position your property with a competitive price and appealing marketing so it doesn’t languish on the market. 

The HomeCraft Team Plymouth, MI has advice for speeding up home sales, like:

  • Accepting contingencies, like making repairs or agreeing to inspections
  • Offering concessions, like paying closing costs
  • Being open to cash sales that eliminate time-consuming paperwork
  • Working with a company that specializes in cash transactions and fast home sales 

Empowering Home Sellers with Knowledge

Understanding the selling home terminology that real estate agents and lenders use throughout the transaction can help you avoid costly mistakes and ensure the process goes as smoothly as possible. Thanks to this newly acquired knowledge and the help of the experienced HomeCraft Real Estate team, you can go into the process feeling more confident and in control.

When it’s time to sell your Plymouth, MI, home, the HomeCraft Real Estate team is on your side at every step. Call (734) 531-7493 today if you have additional questions about real estate jargon or want to list your home for sale.