It is important to understand the language used in real estate and what different terms mean, whether you are thinking of buying or selling a Pittsburgh property.
The terms used in real estate are relatively easy for the most part, but there a few words you may not have heard before. Below are some commonly used terms and their definitions to help you better understand what your real estate agent is talking about.
Multiple Listing Services ® This is a database that is shared amongst real estate agents that lists different properties that are up for sale. This data can only be accessed by the member agents, who are then able to show it to the general public.
Title Insurance Policy A title insurance policy is set in place by the borrower to protect the lender and you from any future claims on a property. While it may seem expensive it is much cheaper than dealing with a problem with your title in the future.
Contingency These refer to certain clauses of the purchase agreement that must be fulfilled before the agreement becomes legally binding. Examples include repairs to be made, a professional inspection to be carried out or final approval of the mortgage.
Principle Interest Taxes and Insurance These are the 4 parts of your mortgage payment, PITI for short. Principle is the amount borrowed on which the bank charges interest. Taxes and insurance are paid every month for the property that has been mortgaged.
Closing Costs These refer to the total costs accrued when Pittsburgh property is purchased. They include mortgages, settlement fees, insurance, taxes and commissions charged. Ask your agent to provide an account of all the expected charges.
Concessions When a sale is getting closer to being realized, the seller can give benefits called concessions to the buyer to help close the deal. These benefits can include seller assistance on closing costs, repairs and improvements on the property, low repayment terms for the first few months, payment for expenses related to moving to the new property, appliances etc.
Comparative Market Analysis Reports that compare different properties in the market that are on sale or have just been sold in terms of prices and features. An accurate CMA can help determine the likely sale price of your home and help you figure out the best listing price.
Appreciation This term refers to increases in property value due to improvements being made on it, inflation or forces of demand and supply.
Depreciation This term refers to decreases in property value due to lack of maintenance, deflation or forces of demand and supply.
It is important to understand these terms when considering making a purchase. You will understand the negotiations and the legal documents better when you have this information, which gives you more control over the sale of the Pittsburgh house itself. Be sure to ask your agent if there are terms you don’t understand, after all that is what we are here for, to help guide you through the sale or purchase of your new Pittsburgh home.
Pittsburgh is a great city! If you are relocating to Allegheny, Butler or Westmoreland Counties I can help. Call Christa Ross from RE/MAX Select Realty, at 724-933-6300 x214 (office) or 724-779-1437 (direct) or visit my website at www.bestpittsburghhomes.com.
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