Buying real estate has enough hurdles of its own, so you’d probably want to preserve your energy for those. But when you’re first getting started something that’ll certainly confuse any buyer is the jargon used in listings and by real estate agents. To avoid having an information overload why not brush up on your real estate jargon now that you’re in the market..
I’ll explain a few terms below to help you get started, but if there are any others you come across they are most likely in our Real Estate Glossary of over 250 terms, to visit, just click here.
An Active Versus Pending Status
If you find your dream home and then notice that it has a pending status, brace yourself for disappointment. A pending status indicates that the sellers have already accepted an offer on the property whereas an active status means the owners are still accepting offers. Even if a home is listed as pending you can still put in your bid, just in case the first one falls through.
This is an important figure when choosing a real estate agent. The percentage is calculated by what a home was initially listed for, divided by it’s eventual selling price. The closer an agent’s percentage is to 100, the more reputable and trustworthy they are. As a low percentage indicates that the agent repeatedly lists homes far too high for a sale. This is usually in a bid to increase the amount of home’s on their database.
Median Days on Market
The median days on market is an average of how many days it took for homes in that area to sell. For example if the median days on market is 30 days, half of the homes in the area sold in less than 30 days and the other half more. If a home you’re interested in has been on the market for well over the median it’s time to get your negotiator hat on and see if a seller is willing to sell for less.
Properties listed as distressed mean an owner has either defaulted or is about to default on their mortgage repayment. These homes can offer excellent value if you’re able to make a deal with the seller to avoid the negative effects foreclosure will have on their ability to buy a home in the near future.
If you’re looking to purchase property let me help you maker sense of the jargon and find the home of your dreams.