Real Estate Talk
Key phrases you will hear throughout the real estate process.
Home Inspection - A general review of the home by a qualified home inspector to note any needed repair items, potential repair items in the future and make recommendations if a specialist is needed to review any potential serious items. This is a buyers expense and typically ranges from $250-$400.
Appraisal - The bank orders a value opinion from a 3rd party known as an Appraiser. His valuation report is called the appraisal. This is typically a buyers expense and prices typically range from $350-$500.
Survey - A survey shows the lot boundaries of the property and if there are any potential issues. The surveyor will mark the lot boundaries at the home with small stakes with markers. This is a typical buyer expense and runs from $250-$350.
Termite Bond - A termite bond is basically an insurance protection plan against any damage caused by termites. The bond is a yearly renewal to provide that protection. Some companies will spray quarterly/yearly and some companies use a bait system that they check quarterly. The bond renewal is usually anywhere from $75-$175 and if using the bait system is $300 and is typically paid by the seller.
Wood Infestation Report - The wood infestation report is an inspection report to see if there is any active or previous infestations. Many old homes have had previous infestations and typically it is nothing to worry about if it has been addressed. The wood infestation report typically runs $150-$175 and is normally paid by the buyer.
Closing Disclosure - Also known as the CD or some may call it the HUD. This is the form you will get from the closing attorney to see where all monies involved in the transaction are going. You typically receive this document the day before closing and your agent or lender will go over it with you.
Home Warranty - A home warranty is a yearly renewable mini insurance policy that for buyers covers hvac, appliances, plumbing, etc. If something broke you would contact the home warranty company and coordinate the repairs. Some companies require you to use their preferred repairmen and others allow you to choose your own repairmen. Home warranties are an item the buyer can shop for to choose the best option for their needs. These range in price depending on the benefits of the specific policy. They can range from $450-650. Home warranties are not required but most buyers ask for sellers to cover the cost of one at closing for the first year.
HVAC - This stands for heating, venting and air conditioning. This is the system that will keep you house heated and cooled.
FSBO - This stands for “For Sale By Owner” and means that the home is being sold by owner without the assistance of a licensed real estate agent. If you are the buyer and working with an agent the agent will contact the homeowner for you.
Contract - The contract will be the official agreement between the two parties on the specifics of the transaction. This is a legally binding document so you will need to understand what you are signing. You agent will be able to explain the contract to you.
This by no means a comprehensive list of real estate terms. If you have a question about a term you are not familiar with let me know and we can add it to the list. If you want to know then there are others that have the same question.