Do you have any idea what those words mean on the offer?


What does THAT mean?

Have you ever met with an “expert” and didn’t understand a word they said? Here is a list of real estate terms that will make YOU the expert when talking to a real estate professional!

Days on Market
  • The amount of time a property has been actively listed for sale. Days on market measures time from the listing date to the date the offer is accepted.

Conditions
  • Items written on an offer to purchase that must be completed before the sale of the home is finalized. Examples include financing conditions, sale of another home, or a home inspection.

Terms
  • A term is not a condition that needs to be fulfilled before the offer is acc accepted. Rather it is used to clarify what the buyer expects to be done or included with the property.

Goods and Chattels
  • A chattel is a moveable possession and personal property that can be removed without injury to the property. Chattels are normally deemed to be excluded from the purchase price unless they are specifically noted in the agreement of purchase and sale.

Down Payment
  • The amount of money the buyer has saved in order to purchase the property. This can typically range from 5-20% of the home’s cost.

Debt to Income Ratio
  • The ratio used by mortgage lenders to determine how much you can afford to pay monthly for your mortgage.

Equity
  • Home equity is the market value of a homeowner’s unencumbered interest in their property. In real terms, the difference between the home’s fair market value and the outstanding balance of all liens (eg. Mortgage) on the property.

Home Inspection
  • A home inspection is carried out by an objective third party to establish the condition of a property during a real estate transaction. The inspection is meant to identify major issues that might affect the value of the home and the stability of your investment.

Dual Agency
  • When one real estate agent represents both sides of a real estate transaction instead of having both a buyer’s agent and a listing agent. Manitoba law requires that the agent disclose dual agency to all parties.

Real estate doesn’t have to be complicated. With a clear plan we can work together to accomplish your goals

 


Posted by Brad Elias on
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