Denver Real Estate – Get A Better Understanding Of Real Estate Terms

Denver Real Estate - Get A Better Understanding Of Real Estate Terms

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 Denver 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 Realtor 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 from any future claims on a property.

**Sale-Lease Back

This is an agreement where a property investor acquires a property from the owner and leases the same property back to the owner on certain terms.

**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 or a professional inspection to be carried out.

**Principle Interest Taxes and Insurance

This relates to a mortgage where the 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 your Denver property is purchased. They include mortgages, lawyer's fees, insurance, taxes, commissions charged etc.

**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 include 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

These are reports that compare different properties in the market that are on sale or have just been sold in terms of prices and features.

**Appreciation
 
This term refers to increases in property value due to improvements being made on it, inflation, forces of demand and supply etc.

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 house itself.