Real estate can be a very confusing business. If you are not a real estate agent, you may only have to go through the process of buying and selling a home a handful of times throughout your life. This makes it extremely hard to keep all the terms and definitions straight in your head. While most real estate agents are trustworthy and honest and will explain the process step by step, it is still helpful to know some standard terms. Having knowledge about certain real estate related words can hopefully make your next buying or selling adventure much less stressful. If you are in need of an Ortley Beach real estate agent, be sure you are only dealing with an experienced and credible office like Birchler Realtors. Real estate at the Jersey Shore can be overwhelming. Choosing the right agent is vital to you finding the right home.
Ortley Beach Real Estate Words
Basic Real Estate Terms
Appraisal
A home appraisal estimates the value of a property. Lenders take this step to ensure that the loan they are considering is accurate for the property’s fair market value. In other words, a bank or lending house doesn’t want to approve a loan for more than what the home is worth. If the home does appraise for less than what the offer put forth was, the lender may ask the buyer to cover the difference. It is normally based on the sale price of homes that are comparable to the home for sale in the same locale and an examination of the property itself.
Agent: Buyer’s and Seller’s
A buyer’s agent is the licensed real estate agent who represents the buyer and the buyers interests exclusively during the home buying process. This agent’s main job is to research homes for sale in order to find the perfect home for their buyer. They are responsible for items such as providing information about the home and the neighborhood and bargaining for the best sale price.
In contrast, the seller’s agent is a licensed real estate agent who is accountable for the seller’s interests during the real estate transaction. Selling the property is their main objective. They can arrange open houses, are in charge of marketing the home, and provide help to the seller. They complete tasks such as providing prices on comparable homes to find a reasonable asking price and advising on offers received.
Closing
The closing is the final step in the home buying and selling process. The buyer and seller must decide on the closing date. Normally, it will occur a few weeks after an offer is accepted. Once the closing is completed, the buyer becomes the legal owner of the property. In order for a closing to be completed, all paperwork is required to be signed by both parties and all money transactions should be complete.
Inspection
A home inspection usually happens fairly late into the home buying process. A buyer can schedule a home inspection after they submit an offer that is accepted. A certified well-trained inspector is the only person who should conduct an inspection. The report will detail the condition of the home along with any repairs, no matter how minor or major, that should be done. A full report is given to the buyer so they can make an informed decision on any concessions or items that may affect the final sale of the property.
Multiple Listing Service
This is a searchable listing of homes for sale in any given area. This enables brokers to connect with each other which essentially helps everyone. When a seller’s agent adds a listing to the MLS, it allows all buyer’s agents to find this property assisting both sides in making a sale.
Probate Sale
A probate sale happens when a home is put up for sale after the legal owner has passed away and did not have a will or did not leave the house to anyone. Probate sales normally take a bit longer to complete due to the added complications and nuances.
Short Sale
A short sale occurs when the purchase price is less than the debt due on its mortgage. The seller has to pay the difference between the purchase price and the remaining amount due for the mortgage. In order to avoid foreclosure, a homeowner may put their home up for short sale. The seller’s lender must approve of this type of sale and they typically take a longer time to complete than a standard sale.
Title Search
This is done to ensure that there are no liens against the property or any other issues. A lien or question of ownership will prohibit the seller from being legally able to sell the property. The result with show all sales, property tax history, and legal ownership.
That covers some basic real estate terms, but there are many more. Discussed below are terms specific to the financial portion of real estate.
Financial Real Estate Terms
Equity
In simple terms, equity is the amount of your home that you actually own. In other words, your equity is equal to difference between the fair market value of your home and how much of the principal you have remaining. The more equity you have, the more financial freedom you have. You can leverage your equity to assist you in getting loans to help pay for major home repairs.
Escrow
Escrow is a banking account that is set up by the lender or a neutral third party. The account holds assets for the client until all terms of the contract are met. Escrow is closed once all the funds have been distributed to the seller.
FHA Loan
A Federal Housing Administration or FHA loan that involves the government approving the lender and also insuring them. Lower-income buyers are the ones who benefit from this type of loan. An FHA loan typically requires less in the way of down payments and credit history.
Foreclosure
Foreclosure is the process where the lender takes over ownership of a property. If the lender does not receive payment for a minimum of ninety days, foreclosure may be the next step. Once the three-month mark is reached, the lender takes control of the property if the owner is unable to pay off their debt. The alternative option is to sell the home through a short sale. The home will go up for auction if neither of those options is met.
VA Loan
A Veteran’s Affairs or VA loan is strictly for military personnel, veterans, or their spouses. Guaranteed by the Department of Veteran Affairs, this loan allows the lender to approve a higher loan amount than they may have under similar circumstances. They are a low-to-no down payment loan aimed at helping veterans looking to purchase a property.
Ortley Beach Real Estate Requires a Large Vocabulary
Ortley Beach real estate requires a lot of education. There are so many rules, laws, and industry-specific terms that many agents don’t pass their exam the first time. Real estate agents put a lot of time and effort into becoming a licensed agent. The layman could never hope to know everything a real estate agent knows without taking a course. However, it is still important to know some general things about the home buying process. After doing some minor education for yourself, the next important thing to do is select the perfect office or agent. The only Ortley Beach real estate agent you want is one who is experienced and trustworthy. Be sure to do your research before you select an agent.
More Terms to Know While Navigating Ortley Beach Real Estate
Mortgage Pre-Approval
One essential step in the process is determining your budget and securing pre-approval for a mortgage. Knowing your financial boundaries upfront ensures you’re looking at properties within your means, avoiding unnecessary frustration. Additionally, reviewing properties listed on the Multiple Listing Service (MLS) with your agent can save time and streamline the search for the perfect home.
Contingencies
These are conditions that must be met for a real estate transaction to proceed. Common contingencies include securing financing, passing inspections, or selling a current home. For buyers, including contingencies in an offer can provide protection, while for sellers, navigating them effectively can help avoid delays.
Earnest Money Deposit
This is a sum of money buyers provide to demonstrate their seriousness about purchasing a property. Held in escrow, the deposit is applied toward the down payment or closing costs, offering security to both parties in the transaction.
Whether you’re buying your dream home or selling a property, Ortley Beach real estate requires careful planning and professional guidance. Partnering with an experienced and trustworthy agency like Birchler Realtors ensures you’re supported at every stage. Their deep knowledge of Ortley Beach’s market trends and real estate laws will be invaluable as you navigate the complexities of buying or selling.
Remember, while the process may feel overwhelming, having a knowledgeable agent and a clear understanding of the steps involved makes all the difference. Investing time in research and preparation helps transform the journey into an exciting and rewarding experience.
