If you are hoping to sell your house fast in Pensacola, there are some real estate terms you should become familiar with. Below, we’ve compiled some of the lesser-known real estate terms you might hear when selling your house in Pensacola. Please feel free to reach out to us if there is anything else you would like to know about the selling process.
At Quality Properties Of Northwest Florida LLC, we are happy to answer all of your questions. we like to provide you with the necessary knowledge in this article to make a realistic decision when you need to sell your house fast. Knowledge is power. And at Quality Properties Of Northwest Florida LLC, we like you to have that power when you needed the most.
Please feel free to give us a call about a property you have and you want to sell your house fast. Or if you have any questions for us. We will be happy to help you in the best way possible, or answer any of your questions. Our number is 850-346-4995
Real Estate Terms:
Appraised Price
An appraised value is an evaluation of a property’s value by a professional appraiser. This can be done during the mortgage origination process or by the buyer or seller privately to help determine the value of the property. An appraisal can also be used for tax purposes or after a divorce.
A lot of times Appraisal is not accurate. Honestly, no one does a great evaluation on a property in any giving time like someone who does it for living. What I mean is, a real estate home cash buyer company like Quality Properties Of Northwest Florida LLC, buy and sell houses, or buy and rent those houses we buy. We calculate the value of the property up to the penny. Why?
Because we have our money on the line. We do it for living. We take all calculated measurements of all aspects of the house evaluation to come up with the right numbers. Basically, we put our money where our mouth is. Unlike the appraisal. they get paid to do it for other people like, lenders for example.
Appraisal is one of the most used real estate terms you will hear when you’re selling your house. It’s a real estate term mostly used when you’re listing your house on the market, because most of the home buyers are getting a loan from the lenders. The lenders order the appraisal to make sure that the value of your house is worth the money they’re lending. This way if the borrower (The home buyer) if he/she default of the mortgage payments. The lender can take the house back without them losing any money.
Now, in the case if the appraisal came less than what your asking price is. The lender won’t lend the money to the buyer until you go down of the price of your house to the appraised amount.
Appraisal is one of the real estate terms that it won’t be used with a home cash buyer like Quality Properties Of Northwest Florida LLC. At Quality Properties Of Northwest Florida LLC, we don’t do any appraisal. because A) We’re not getting a loan from the bank and we’re paying cash for your house. And B) We’re more accurate when doing a house evaluation on the market value of your house. Because this is what we do for living!
Assessed Value
The assessed value of a property helps determine how much a homeowner will need to pay in property taxes. The property appraiser will take into account location information, inspection information for the home, and recent home sales in the area.
Assessed value is one fairly real estate terms used in the real estate world. The more you hold on to a property, the more you will hear about it. Specially, during the time when you pay your property taxes. You won’t be hearing about any of the real estate terms if you don’t have the property anymore specifically assessed value.
Carrying Costs
The carrying costs are the costs you facing each month to own the home. This includes things like your tax payments, insurance premiums, utility bills, and maintenance costs.
Carrying costs is one of the real estate terms used mostly when you have a vacant house, or a house you have in the market.
A home you’re living in. In my opinion carrying cost won’t be one of the real estate terms. Instead it will be cost of living.
One of the most daunting obligation you have as an expense when you’re not living in a house is the the carrying costs. That’s an expensive costs. With Taxes, insurance, utilities, maintenance. You won’t have a much of a profit if you hold on to that property long enough.
Clear Title
A clear title means that there aren’t any other ownership claims to the property, nor are there any liens against the house.
The process of a title search will starts at the beginning of the home buying process. To make sure we have a clear title in hand. Or if there’s anything on the title. We need to find that early on, to make sure we can remedy any issues with the title before closing time.
At Quality Properties Of Northwest Florida LLC, we do all the paperwork for you, from title search, doing all the closing documents. And you pay us nothing for it. We do it all for free!
Comparative Market Analysis
A comparative market analysis, or CMA, provides information to help determine the value of the property. It takes into account recent sales to help you figure out what your house is currently worth.
Contingencies
A contingency is a stipulation in the contract that needs to be met before the contract is legal and binding.
Covenant
A covenant formal agreement in which one party gives the other certain assurances. An example would be covenants of warranty in a warranty deed.
Delinquency
A delinquency occurs when a homeowner defaults on their loan. This is when a lender will actively begin the collections process, even initiating foreclosure.
Disclosures
A disclosure is a document that the seller provides the buyer, letting them know about any problems, defects, or known issues with the property. Failing to disclose a problem with your home can be considered fraud.
Encumbrance
An encumbrance is a claim against the property that restricts its transfer or use. A property lien is considered an encumbrance.
Foreclosure
A foreclosure occurs when a homeowner fails to make their mortgage payment, typically for 90 days. The owner waives all rights to the property and the home becomes the possession of the bank.
Inclusions
Inclusions are personal property that is included in the home sale. This can be things like appliances, furniture, or outdoor items.
Market Value
Market value is a valuation of the property in which the parties are free of pressure to complete the transaction and all details of the house are known. It can be formulated by finding the average between the highest price a buyer would pay and the lowest price a seller would accept.
Mechanic’s Lien
A mechanic’s lien is a lien against the property which will secure the payment of contractors, laborers, and those who provide materials.
Negative Amortization
While amortization refers to paying off your loan, negative amortization happens when the payments you are making aren’t enough to cover the interest and the amount you owe becomes greater as opposed to less.
Quitclaim Deed
A quitclaim deed transfers the interest in real property from one person to another.
Sale-Leaseback
A sale-leaseback occurs when a buyer purchases a property and then leases it back to the occupant.
Short Sale
A short sale occurs when an owner sells their property for less than what is owed, allowing the lender to recoup some of the cost of the loan as an alternative to foreclosure.
Title
The title refers to who has legal ownership and who can legally use the property. Just like a car, it is how you claim ownership of the property.
Title Defect
A title defect is when there is an adverse claim, somewhere in the chain of ownership. It can have an impact on who has legal rights to the property.
Waiver
Voluntarily giving up a right, claim or privilege. It removes liability for the other party in the agreement.
When trying to sell your house fast in Pensacola, you will likely hear a lot of real estate terms and jargon thrown your way. It’s important to know what is being said and how the terms used will impact you. Do your homework before selling your house fast in Pensacola so you don’t miss something you should have been aware of!
