5 Real Estate Terms Every First-Time Homebuyers Must Know

HomebuyerFirst-time homebuyers can get overwhelmed because of the many things they need to consider. It may look like finding the best home that fits your preferences and budget is like a walk in the park, but it’s not. You need to familiarize yourself with important real estate terminologies for you to make the best decision. Below, Gates Estates shares just a few of the terms you must understand.

Comparative Market Analysis

Comparative Market Analysis is a simple evaluation of homes that just got bought in a certain neighborhood. This analysis is a great factor in determining the most reasonable price range for houses in that specific real estate market.

Listings

In Calistoga, CA, real estate agents and agencies have different listings of houses that they are currently selling. These listings are mostly found on their websites, but they can also be in brochures. Listings contain everything you need to know about a house, including its price, neighborhood information, and number of rooms

Earnest Money

Earnest money is the amount you’re willing to pay to show that you really are interested in buying a home. Normally, you should pay this amount within three business days after agreeing to an offer. This ranges between 1 to 3 percent of the home’s total price.

Closing Cost

After giving the earnest money, most agents also require you to pay a closing cost. Usually, this can amount between 2 and 5 percent of the agreed upon purchase price and include attorney fee, title insurance, and recording fees.

Contingency

Contingencies are precise and detailed conditions you demand from the agent once you place an offer and seal the deal in buying a house. Most common contingencies include complete house inspection, the best financing options, and appraisal. You must discuss this with your agent meticulously to make the most out of your rights as a homebuyer.

As a first-time home buyer, you must be familiar with these basic real estate terms. This will help you land a great deal and be more confident about your purchase.

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