5 Real Estate Terms You Need to Know
Agents use the median list price help formulate a negotiation strategy. When an agent is deciding a home's list price, they will look at the median list price per square foot of nearby homes. The agent will then factor in each home's unique qualities to find an accurate listing price.
Tip: Some might be tempted to look at the average price of homes in a city to learn how the real estate market is doing. It's true that this information can help decipher real estate trends, but a better measurement is to use the median list price per square foot of a real estate market.
4. Pending status
When homebuyers begin searching for a home, they will come across a number of designations that explain a home's condition on the real estate market. These are referred to as the home's listing status.The majority of homes buyers will look at will be listed as "active," meaning the sellers are accepting offers. There are, however, many different status listings that can mean slightly different things. Because each Multiple Listing Service is unique, how listing statuses are defined will be different. One of the most common listing statuses is "pending." This means the seller has approved an offer and is not accepting more others. In other words, the home is ready to close and all contingencies have been waived. Tip: Sometimes the seller will accept a backup offer in case the first offer falls through. So if you're absolutely in love with a house, go ahead and bet on a long shot. It's not uncommon that your backup offer might turn into the real thing. 5. Percent of distressed properties
What are distressed properties? There are a lot of answers to this question, but it boils down to homes that are on the market because the homeowner has defaulted on their mortgage or tax payments. After a property becomes distressed, a variety of organizations such as a debt collector, government or bank try to sell the home to recuperate back mortgage payments or taxes. Homebuyers on the hunt for affordable homes should consider viewing distressed properties because they are typically sold at a much lower price than similar homes on the market. As the name suggests, the percentage of distressed properties, which can be viewed on any major internet brokerage, tells homebuyers what percent of a real estate market is made up of distressed properties. Tip: If you're a frugal shopper, you will be more likely to find cheaper homes for sale by looking at distressed properties. The smaller the figure, however, the harder it will be to find home deals.
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