Are you thinking about selling your home in the Greater Phoenix area? Selling a house or condo is a major financial transaction involving a lot of paperwork full of terminology which may be new to you, especially if this is your first sale. In today’s post we’ll introduce a number of terms that you will come across during the home selling process and define them in language that is easy to understand.
Frequently Used Terms for Home Sellers
Appraisal – This term refers to a professional estimation of the true value of your home and property, based on local real estate market factors, recent sales in the area and more.
Counter-Offer – A counter-offer is an offer made in response to another offer. If a buyer offers to purchase your house at a certain price, you may decide to issue a counter-offer at a higher price. Counter-offers are a part of the negotiation process and happen in a high percentage of home sales.
Earnest Money – This term refers to the initial deposit that the buyer places in escrow in order to secure their right to purchase your home. Offering earnest money shows that the buyer is serious and allows time for each party to fulfill their responsibilities in the agreement.
Home Inspection – This refers to the complete inspection of a home by a professional inspector in order to determine the condition of the home and whether repairs or maintenance will be needed after the purchase is complete. An inspection will cover safety, electrical, water, gas, the roof, the foundation and more.
Possession Date – After the sales transaction is complete and the home has legally changed hands, the buyer will want to begin moving in. The date at which they take full control of the home is the possession date.
Purchase Offer – The purchase offer is the written document specifying the terms of a real estate transaction. During the negotiation process the seller and the buyer will work together to come to an agreement on the terms of the purchase. After all of the amendments are made and the purchase offer is signed, it becomes a legally-binding contract between the two parties.
Title – The title – also known as the deed – is the legal document giving ownership rights to a piece of property. These documents are generally stored at a local government office and updated when a home is sold and a property changes hands.
Don’t worry if the above terms or others that you hear during the home selling process sound foreign to you. The friendly real estate professionals here at the Daniel Montez Real Estate Group will help translate these terms into language that you understand. It’s our goal to make the home selling process simple so you can focus on your own priorities. Contact us today at (480) 269-6060 or if you prefer you can send us a quick email.