08/29/2022
Here are 5 essential terms all first-time home buyers should know before they start their search.
No.1 - Buyer's Market
In a buyer’s market, there are more homes on the market than there are buyers, giving the limited number of buyers more choice and greater negotiating power. Homes may stay on the market longer, and prices can be stable or dropping.
No.2 - Buyer’s Agent
The buyer’s agent represents the homebuyers and their interests in the transaction. One the other side of the transaction, the listing agent represents the seller and his or her interests.
No.3 - Pre-Approval
Before submitting an offer on a home (or even engaging with a real estate agent) you’ll likely be required to get pre-approved. This means a lender has checked your credit, verified your information, and approved you for up to a specific loan amount for a period of up to 90 days.
No.4 - Closing Costs
Closing costs are defined as the expenses, over and above the price of the property, that buyers and sellers normally incur in order to finalize the closing of a real estate transaction. Generally 2-5% of the total purchase price of the home.
No.5 - Offer
An offer is a legal agreement to purchase a home. An offer can be conditional on a number of factors, commonly conditional on financing and a home inspection. If the conditions are not met, the buyer can cancel their offer.
How many did you know?
•
•
•
•
•
•
•
•
•
•
•
