The home buying and selling process is complex enough already. Real estate phrases can complicate it further, particularly if it is your first time buying a home. Below you will find definitions on common real estate phrases in MA. This will help you better digest the buying and selling process.
Common Real Estate Phrases In MA
CMA
CMA stands for Comparative Market Analysis. This is a document that compares your real estate to similar-styled homes that recently sold in the area. It typically provides a price range for which your real estate may sell in the existing market.
MLS
MLS stands for Multiple Listing Service. This is a system where real estate professionals enter properties for sale. Different areas usually have separate MLS systems, and some states may have multiple ones. The general public is not given direct access to this date but may receive access through allowed parties.
Assessed Valuation
This is the value placed on homes by a local tax assessor and used to levy real estate property taxes. Assessed amounts have no bearing on the listing price of a home.
Walk-Thru
Walk-thrus commonly take place shortly before a closing. It permits a buyer to quickly inspect a home and to ensure that the condition has not altered from the last time the buyer inspected it.
Contract Terms
Contingency
A contingency is a condition required for an individual to proceed with a home sale or purchase. For example, the purchase could be contingent on the sale of their old property. Other frequently used contingencies are for performance of a home inspection and receipt of a loan commitment.
Good Faith Money
Good faith money applies to deposits submitted by a buyer as part of a contract to purchase real estate. It confirms that a buyer is serious and is moving forward in good faith. Deposits are almost always retained by the listing agency for a seller and returned to a buyer at closing.
Closing Date
A closing is when documentation is completed, funds are exchanged, and a home legally transfers from the seller to the buyer. P&S agreements always have a closing date and location specified.
More Real Estate Phrases
This article provides definitions on common real estate phrases in MA and entails only the most basic terms. For more detailed real estate terms and guidance, contact Christopher Graves at 781-759-1200 x22 or christopher.d.graves@gmail.com.