Real – Real Estate Terms to Understand

A fellow Realtor offered this cheat sheet of real estate terms on a forum I frequent. Bill Flinn offers a wealth of information and service to his clients in Arizona. The list may seem basic but these are the terms that many times have to be explained over and over again during the real estate process.

Asking Price: The listing price of a home when a seller puts it on the market.

Average Price: The average price of all the comparable homes presented in your Market Snapshot in relation to the time frame you have selected.

Buyers’ Market: Generally, a market in which the supply or inventory of listings is much greater than the demand for listings. Such a market can also mean that seller expectations of their home’s value tend to be more than the market will support. Consequently, market values often decrease slowly, do not increase or even decrease.

Additionally, in a sellers’ market the number of days that homes are on the market before they sell is greater than average, so it is usually more difficult for sellers to sell their homes at the price they ask.

Comparable: A home in your area that is currently for sale or recently sold that is similar or “comparable” to your home in terms of price, type, size, the number of bedrooms and bedrooms, special features and other details. These comparables are used to help you determine the market value and, consequently, the asking price of your home when you decide to sell.

Expired Home: A home that was for sale but was recently taken off the market. Usually an expired listing is taken off the market because the seller did not receive what he/she considered to be an acceptable purchase offer during the listing term.

High/Low Price: The highest and lowest prices of all the comparable homes presented in your Market Snapshot in relation to the time frame you have selected.

Home For Sale: A home currently for sale on the market (a “listing”) that has no pending purchase offer from an interested buyer.

Multiple Listings Service (MLS): A computer-based service that provides real estate professionals with detailed descriptions of most of the homes that are currently for sale on the market, as well as homes that have recently sold and homes whose listing periods have expired.

Pending Home: A home that is currently for sale on the market but has a pending purchase offer from an interested buyer.

Sellers’ Market: Generally, a market in which the demand for listings is much greater than the supply or inventory of listings. Such a market can also mean that seller expectations of their home’s value tend to be less than the market will support. Consequently, market values often increase rapidly.

Additionally, in a sellers’ market the number of days that homes are on the market before they sell is less than average, so it is usually easier for sellers to sell their homes at the price they ask. In fact, sales often involve multiple offers, as well as offers that are greater than the asking price.

Selling Price: The purchase price that the seller and buyer legally agree, regardless of contractual terms and other considerations such as what home features and fixtures are included in the purchase.

Sold Home: A home that has recently sold.

Time-On-The Market: The number of days that a home has been for sale on the market, or the number of days it was on the market before it was sold.

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