During a typical Real Estate transaction there are common Real Estate terms that can be confusing for any buyer or seller to understand, and with more people buying and selling homes than ever before, thanks to the housing recovery it can be confusing when certain Real Estate terms come up when you’re communicating with your Realtor.
In today’s post we’re going to cover two common real Estate terms so regardless if you’re a buyer or seller, you can be better prepared during any Real Estate transaction.
The appraised value of a property is determined based on the appraiser’s experience, knowledge of the local market, analysis of the home / property and reviewing homes that have recently sold in the area, also known as comps.
Many times the appraised value of a home or property is different than its accessed value or the valuation that’s placed on a hom or property by the tax assessor where that home is located.
Tax assessors don’t always assess a property at its current market value. They have to assess it at what they feel a buyer will be willing to pay for the property. The difference between the assessed value and appraised value is also known as equalization rate and it can be as high as 75 percent, depending upon the area.
Every home buyer can expect to pay closing costs. These are typically separated into two categories:“pre-paid items” or items like homeowners insurance that will be paid out over their 30-year Mortgage and non-recurring closing costs, or items that are paid once.
Every lender will present the buyer with a good faith estimate of their closing costs so they can have a better understanding of what they will have to pay at the close of home sale.
To learn more about common Real Estate terms, or to view the latest Orange County homes for sale, contact Fred Sed & Associates today by calling us at (949) 272-0125,