Real Estate Terms

The following are some common real estate terms used by buyers, sellers, brokers, real estate agents, bankers, and other professionals involved in the real estate transaction process. Check my blog frequently for more terms. If you have any questions about buying or selling real estate, contact Jennifer today at Panama City Real Estate or 800-728-0853

Disclosure laws:
State and federal regulations which require sellers to disclose such conditions as whether a house is located in a flood plain or whether there are known defects in or affecting the property.

Earnest Money Deposit:
EMD, A portion of a down payment given to the seller by a potential buyer indicating the buyer’s intent to complete the purchase of the property.

Easement:
A right to use the land of another.

Encroachment:
A condition that limits the interest in a title to property such as a mortgage, deed restrictions, easements, unpaid taxes, etc.

Equity:
The value of real estate over and above the liens against it. It is obtained by subtracting the total liens from the value.

Equity mortgage:
A mortgage based on the borrowers’ equity in their home rather than on their credit worthiness.

Escrow:
The placement of money or documents with a third party for safekeeping pending the fulfillment or performance of a specified act or condition.

Federal Housing Administration (FHA):
An agency within the Department of Housing and Urban Development (HUD) that administers loan guarantee programs and loan insurance programs to make more housing available.

Step 4. Making an Offer

Once you find the home you want, you need to make an offer for the house. Typically this is a very difficult and trying time since both parties have totally different goals. In most cases it is better to have a third party, such as a real estate professional, negotiate the offer. If you have any personal interaction with the homeowner, don't give out any information about your move, your current housing status, financial status or your feelings about their property - positive or negative. This could hurt you in future negotiations.

This might also be a good time to consider purchasing a home protection plan. These insurance policies can be purchased by the buyer or seller and help protect against unexpected costs or home repairs during the listing period or in the initial years after a home has been purchased.

Step 3: Shopping For Homes

Previously we discussed: Knowing what you want & Figuring out what you can afford. Now we can start shopping for homes.

Once you know what community you'd like to live in and have an idea of how much house you can afford, its time to start checking out actual properties. Beginning this search online can help save you time since it can help you target homes that meet your search criteria. A home notifier can even email you when properties come on the market that meet your search criteria. If you are considering a home in Bay County or Panama City, you can search for homes on my web site.

Next, begin visiting homes in person. Ask your local real estate professional to arrange visits and attend open houses that are in your target area and price range. If you are not currently working with an agent and would like me to assist you in finding one in your area, contact me and I will find you a Century 21 professional.

When comparing homes, make sure to look at all aspects of the property. Is the property tax approximately the same? Are both the houses renovated? Do they both have the same amount of bedrooms and bathrooms? Are both houses located on the same or similar streets? Does either house have any encumbrances?

Remember to keep an open mind when you are looking at homes. Use a virtual home planner to help you imagine what the house could become with you as the owner.