Every once in awhile we like to provide you with a refresher list of real estate terminology. We use these terms a lot, so it is important to fully understand what they mean so that you can learn more from what we share. We want you to feel informed and supported in your real estate journey. Here are some of our top terms:
Multiple Offers: This occurs when multiple buyer’s are interested in purchasing your property. They will each submit a bid, then you get to choose which one you will sell your property to. Some factors to consider when this happens are: who the people are, how much money they are offering, when they expect to move in, etc..
Buyer’s Market: When inventory is high, putting downward pressure on benchmark prices. This type of market gives buyer’s an advantage because they have a lot of properties to choose from at reasonable prices. Seller’s in this market need to be aware that there is more competition on the market and should adjust their expectations accordingly.
Seller’s Market: When inventory is low, putting upward pressure on benchmark prices. This type of market gives seller’s an advantage because their property has less competition on the market, so they can ask for more money. Buyer’s in this market need to be aware that there are less properties on the market and should adjust their expectations accordingly.
Benchmark Price: The average price of a property currently on the market. This average is calculated based on the type of property and what its competition is.
Infill: A new home built on an existing lot, typically inner-city. Infill homes offer many advantages, the biggest being that you can own a new home in an existing community at the core of the city.
Comparative Market Analysis: Also referred to as a CMA, a Comparative Market Analysis is done by real estate professional who grades a certain property against similar properties. Factors included in this calculation are location, size, amenities, antiquity, etc.. This allows buyer’s to know they are getting a fair deal and seller’s to know how high to price their home.
Mortgage: A mortgage is what many people use to purchase a home. Essentially you borrow money from a bank and pay it back, with interest, over an agreed-upon amount of time. There are many different kids of mortgage’s, all with negatives and positives. For a full list check out THIS link.
Your Real Estate Professional,