Don't Get Fooled By These Real Estate Terms
Don’t Get Fooled by Tricky Terms When Purchasing Real Estate
When looking to buy real estate, confusing terminology can leave you feeling like a dunce. From a multitude of numbers to marketing jargon, property listings can provide you with an overwhelming amount of information — and it’s hard to know what’s important. So, brush up on the terms below and don’t get fooled!
This is an important number to pay attention to when choosing a REALTOR. The percentage is calculated by what a home was initially listed for, divided by the actual sale price. The closer an agent’s percentage is to 100, the better. If it’s low, that could be an indication that they routinely list homes too high.
Median Days on Market
The median days on market is the midpoint of how many days it took for homes in that area to sell. If it’s 30 days, then half of the homes sold quicker and half took longer than 30 days. If you compare the homes you’re considering to its area’s median days on market and you find that it’s been on longer, the sellers might be willing to take a lower offer.
Properties are listed as distressed when the owners have defaulted on their loans or are about to. As a buyer, you might be able to get a good deal on a short sale or a foreclosure, as banks usually list them below market value to try and recoup some of their loss.
An Active Versus Pending Status
If you find your dream home and then notice that it has a pending status, brace yourself for disappointment. An active status on a home means the owners are accepting offers, while a pending status indicates that they’ve already accepted an offer. If you know it’s the one for you, you can still place a bid in case the first offer falls through.
If you’re looking to purchase real estate, please let me help you cut through the jargon and find the home of your dreams. Call or email me for more information.