Common Real Estate Terminology
When you are house hunting for a new home in Colorado Springs, it is helpful to have a basic understanding of important real estate terminology. This could give you peace of mind now and could help you save a little bit when you place an offer on your dream home. The Platinum Group REALTORS has a few real estate terms you may run across during the home buying process.
After you make an offer on a home, the seller can reject and include a different offer that changes the terms of the original offer in some way. If you offer $350,000 for a house, and the seller replies that they want $375,000, the seller has rejected your offer and made a counteroffer. A counteroffer of any kind completely voids the original offer.
If you place an offer on a home and the seller agrees to the terms of it, it creates a contract. As soon as the seller signs your purchase offer, you’re in contract for the sale of the house, and neither of you can back out without facing consequences, which for the buyer means possibly losing the earnest money deposit.
It is the making a fact known that had previously been hidden. In many states, a home seller must disclose major physical defects in the house within their knowledge. This could be anything from a leaky roof or potential flooding hazards. In all states, the seller must disclose the presence of lead-based paint hazards in buildings constructed before 1978.
After you’ve made an offer on a home, you’ll need to schedule an inspection. The cost of an inspection can vary depending on the home you choose to make an offer on and depending on the market condition. The inspector will go through every nook and cranny and review things like the plumbing, electrical, foundation, walls, heating, and appliances.
When you apply for a mortgage, your lender will require an appraisal of the home you want to buy. This will estimate the home’s value based on comparable homes in the area that have sold. It will also include an investigation of the home.
When you put in an offer on a home, you can specify certain conditions that must be met before the deal will go through. Contingencies can range from making sure you get the loan to the inspection. It allows you a way (and the seller) to get out of the offer if something arises.
After all the negotiations are done and the seller has accepted the offer, you should receive a home title report. Most mortgage lenders require you to pay title insurance as part of the closing costs. Title insurers will search the public records to make sure the home seller has the rights to the title and that there are no liens on the home.
There are many fees that come with the purchase of a home. Typically, closing costs will amount to 2-5 percent of the purchase price of the home, not including the down payment. Fees could include excise tax, loan processing costs, and title insurance.
When you have a trusted Colorado Springs real estate agent, they will help you navigate the buying process. The Platinum Group, REALTORS is comprised of some of the top real estate agents in the Colorado Springs area. We can help you pick the best REALTOR for your house hunting journey. If you’re ready to start touring homes, contact us today at 719-536-4444.
The Platinum Group, Realtors The First Choice in Real Estate
Visit our website: www.PlatinumHomeSales.com
6760 Corporate Drive, Ste 300
Colorado Springs, CO 80906