Home Buying Glossary
Are you in the market for a new house or already in the process of buying a house? There are some terms you should be familiar with:
Appraisal - The estimated market value of a property. Appraisals take into account the features of the property and the condition of the local market.
Balloon Loans - A type of loan where the regular monthly payment is followed by another payment, called “balloon” payment, of the total remaining balance.
Closing - (also called a SETTELMENT) IThe official transfer of a property's ownership from a seller to a buyer. It usually has a form of meeting between the seller, the buyer, the settlement agent and the buyer’s and seller’s agents. At closing, the seller receives the payment for the house, the buyer signs the mortgage (if applicable) and the buyer or/and seller pay closing fees.
Depreciation - Refers to the decrease of the market value of the property over time (due to market changes, changes of the property due to damages etc.)
Fixed-Rate Mortgage - A mortgage with payments that stay the same during the entire life of the mortgage. The interest rates of the loan are not influenced by the changes of the market.
Origination Fee - A fee paid to the lender at closing to cover the administrative costs of making the mortgage. The fee varies depending on the lender and the type of mortgage.
If you want to learn more terms associated with the home buying process, we encourage you to keep coming back to our blog.
If there are any terms associated with the home buying process that you are unfamiliar with, contact us or leave us your question below.
Selling Your House
When you put your house on the market, in order to attract the potential buyers, you spend days cleaning it; painting and even planting flowers in the garden. What sellers tend to forget about is that houses for sale have to be de-personalized so that buyers can easily imagine themselves living there.
The process can be really painful, especially when sellers still live in the house when it is already on the market.
Houses are usually full of memories and filled with things that help us remember. Pictures of children on walls, drawings firmly attached to a fridge or any religious exhibitions need to be taken away or at least put in the place where they would be hard to see. Shelves should be emptied of any travel souvenirs and any toys left by our children on the floor should be taken out of sight.
It can be really hard, especially for somebody who has raised his family there. But a seller needs to understand that once he decides to sell his house, it is not really his home anymore. We need to provide a lot of free space in our house for our potential buyer so he can easily visualize himself living in it surrounded by things dear to his heart.
Have you sold a home before? If so, please leave your thoughts for other potential home sellers on "de-personalizing a home."
Different Types of Home Inspections
Home inspections tend to confuse homebuyers, especially if buying a house is a first-time experience. Below are different types of home inspections you may encounter:
Primary Home Inspection
This is the most important thing to do when buying a house. It is unbelievable how many homebuyers overlook this when purchasing a property. If you want to avoid homebuyer’s remorse you need to have your future house thoroughly inspected.
Engineer's Reports
Many homebuyers hire an engineer to do a detailed inspection of a property (involves the inspection of the electrical system, plumbing, heating etc.) Sometimes this inspection is part of the primary inspection (above).
Termite Inspection
As the name implies, the purpose of the inspection is to check for the presence of termites or other wood-destroying insects in a house.
Well Water Inspections
Depending on the location, some properties may involve a well water inspection to check whether the water in the area is suitable for drinking.
Appraisal / Appraiser's Inspection
This inspection is conducted by the homebuyer’s lender in order to obtain an appraisal on the value of the home. The lender wants to be certain there are no problems with the house with respect to provisions in the type of mortgage sought by the homebuyer.
Final Walk-Through Inspection
This is a final inspection of the property conducted by the buyer and the real estate agent. The final walk-through normally takes place a day or two before closing / settlement. The purpose of this inspection is to ensure that any repairs agreed upon in advance have been made, and that no other issues have arisen.
If you have any questions concerning home inspections or/and home buying process - contact us or leave us a comment below.
What Makes Up Your Dream House?
A marble manse stuffed with art? A swinging pad where the stereo's always thumping and the hot tub's always bubbling? A clean, well-lighted place … that also has a Viking range and a Sub-Zero fridge?
Your answer says a lot about your values and attitudes — and may have a lot to do with when you were born. That's according to the authors of a study of 1,000 home owners nationwide. The market research company GfK Roper Reports asked Americans to prioritize the amenities they'd have in their dream home — not necessarily amenities they already have, or will have in their next home. The different responses, from baby boomers through first-time generation-Y buyers, reflect how different features appeal to different ages and also how tastes have shifted over time.
Take a look at the different value sets among the generations…
Leave us your comments below. Which generation fits you?
Home Buying Glossary
Are you in the market for new house or already in the process of buying a house? There are some expressions you should get acquainted with:
Appreciation - An increase in the value of a property as a result of market change, renovation of a property, or other factors.
Comparative Market Analysis - It is a real estate analysis that assesses the current market value of a house by comparing it with other properties recently sold in the area.
Deed – (also referred to as a TITLE) A written document disclosing the ownership of the property, signed by current owners and including the legal description of a property.
Fair Housing Act – It is a law that prohibits any form of discrimination (on the basis of race, sex, religion, social status etc.) during the home buying process.
Homeowner's Insurance – Insurance that protects a property against damage from fire, storms and other hazards.
Zoning – The ability of a local government to decide about how land will be used in a particular area. For example, a piece of land might be zoned for residential or commercial use.
If you want to get acquainted with more terms connected to the home buying process, we encourage you to keep coming back to our blog.
If there is any expression/vocabulary connected with the home buying process that you are unfamiliar with, contact us or leave us your question below.
