Appraisal: A statement of value or estimation of the value of a property derived using recent sales of comparable properties by a licensed, professional appraiser.
Assessed Value: The value of a property according to jurisdictional tax assessment. Assessed value may not conform to market value, but it is usually calculated to a market value base. A tax assessor’s determination of the value of a home in order to calculate a tax base.Â
Closing Statement: The statement which lists the financial settlement between buyer and seller, and also the costs each must pay.
Closing Date: The date on which the escrow closes and the sale is recorded at the county recorders office. Normally this is the date the buyer will take possession.
CMA: CMA, or Competitive Market Analysis, is a comparison of recently sold homes, properties that failed to see & properties currently on the market, that are substantially equivalent to another home in terms of selling price, location, style and amenities. This helps set a home’s listing price.
Comparables: A term used by appraisers to describe properties which are similar in size, condition, location and amenities to a subject property whose value is being determined.
Contingency: A contractual clause that calls for an uncertain future event to be done or to occur in order for the contract to be binding. For example, the home will only sell if the buyer obtains financing. The money commonly used with sales contracts and leases that is paid in good faith to assure performance of a contract. If the party who put up the deposit fails to perform, the deposit is forfeited, unless conditions in the contract allow a refund.Â
Dual Agent: A licensed real estate salesperson who represents both the buyer and the seller in a transaction at the same time. Both parties must provide written informed consent to dual agency.
Earnest Money: A sum of money or other consideration tendered by the buyer as evidence of good faith in conjunction with an offer to purchase rights in real property.
Escrow: An arrangement for the deposit of instruments and/or the handling of funds with instructions with a neutral third party to carry out the provisions of the agreement or contract when the specified conditions have been met.
Exclusive Right-to-Sell Listing: A listing contract under which the owner appoints a real estate broker as his or her exclusive agent for a designated period of time, to sell the property on the owner’s stated terms, and agrees to pay the broker a commission when the property is sold.
Fair Market Value: The amount of money that would be paid for a property offered on the open market for a reasonable period of time with both buyer and seller knowing all the uses to which the property could be put and with neither party being under any pressure to buy o
HUD-1 Settlement Statement: A closing statement or settlement sheet that outlines all closing costs on a real estate transaction or refinancing.
Lease-Purchase Option: An option sometimes used by sellers to rent a property to a consumer, who has the option to buy the home within a specified period of time. Typically, part of each rental payment is put aside for the purpose of accumulating funds to pay the down payment and closing costs.
Market Value: The current value of your home based on what a purchaser would pay. An appraisal is sometimes used to determine market value.
Walk-Through: A final inspection of a home before closing to look for and document problems that need to be corrected.
