ABCs of Real Estate (A – E)

    sold-signFor those without a background in Real Estate, some of the wording used can sound like a foreign language when trying to buy a house. This is often the biggest purchase in someone’s life, so it’s important to comprehend what’s going on. That’s where we come in – breaking down the jargon (from A to Z) on some of the more commonly used terms in Real Estate to help you understand the process. We’ll start off this first blog with letters A through E…. Here we go!

    A: Appraisal: A professional evaluation of the home’s market value determined by a licensed appraiser. An appraisal is typically required by a lender, with the valuation often based on comparable sales of similar homes in the area.

    B: Broker: A person who is licensed in their state to negotiate the purchase, sale, and lease of property. A broker typically has more training than an agent, and has full authority to run a Real Estate company.

    C: Contingency: Conditions that must be fulfilled before a contract is legally binding or before the deal can close. Contingencies often include a time frame in which the buyer can get their earnest money back if the contingency is not fulfilled before the deadline.

    D: Down payment: The amount of money required at closing by the lending institution for the buyer to get a mortgage. This may be as little as 3.5% with an FHA loan, or at least 20% of the home’s price with conventional loans.

    E: Escrow: Documents and money held in a secure account by a neutral third party until the fulfillment of a specified condition. It is often used by brokers to hold the buyer’s money until closing, or by the lenders to hold money for taxes and insurance on a property. The escrow holder has the obligation of safeguarding the items while in their possession, and to disburse funds and/or convey the title only when all provisions of the escrow have been met.

     

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    Our agents write often to give you the latest insights on owning a home or property in the Eugene / Springfield area.

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    Tyler, please know that your handling of this sale has exceeded even my fairly high expectations. From the first meeting, through the lending process, and then to closing, you have kept me directed and to task on all that needed to be done to complete the deal. Your professionalism has been outstanding as has your commitment and patience. Thank you again so very much. If I have the opportunity to recommend a realtor to friends and clients you will top the list.
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