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Common Real Estate Terms for Miami Sellers
Selling your home can be a daunting task, especially when you're bombarded with unfamiliar terminology throughout the process. I've compiled a handy glossary common real estate terms tailord for Miami sellers.
This Seller's Glossary isn't exhaustive, but it does cover the essential real estate terms you'll come across as you sell your property. From negotiating offers to finalizing the deal at closing, understanding each step is vital to a successful transaction.
If you don't find the term you need here, explore my complete real estate glossary of terms for more information.
Whether you're a first-time seller or a seasoned homeowner, understanding the language of real estate is crucial for a smooth and successful transaction. Let's begin the journey!
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This brief article sets the stage for sellers to explore the accompanying glossary, offering them valuable insights and empowering them to embark on their selling journey equipped with the necessary knowledge.
Seller's Glossary
1. Appraisal: An assessment of the value of your property.
2. Assessed Value: The amount your local tax authority come up with to decide how much is due on property taxes. It's not necessarily what your home would sell for, but it helps calculate your tax bill.
3. Buyer's Agent: A real estate agent who represents the buyer's interests in a transaction.
4. Capital Gains: The profit made from selling your home, subject to taxation.
5. Closing: The final step in the selling process when ownership of the property is transferred to the buyer.
6. Closing Agent: The individual or entity responsible for overseeing the closing process and ensuring that all necessary documents are signed and funds are distributed correctly.
7. Closing Costs: Fees associated with finalizing the sale of your home, such as taxes, insurance, and title fees.
8. Closing Date: The closing date marks the culmination of our transaction journey. It's the appointed day when ownership officially transfers to you, and all pertinent paperwork is finalized.
9. Commission: The fee paid to the real estate agent for selling your home.
10. Contingency: A condition that must be met for the sale to go through, such as a satisfactory home inspection or securing financing.
11. Counteroffer: A response from the seller to the buyer's offer, suggesting changes to the terms.
12. Deed: A legal document that transfers ownership of the property from seller to buyer.
13. Documentary Stamps: Stamps affixed to a deed or mortgage to indicate that a tax has been paid on the transaction.
14. Down Payment: The initial payment made by the buyer towards the purchase price of your home.
15. Earnest money: A deposit made by the buyer to show their commitment to purchasing your home.
16. Escrow: A neutral third party that holds funds and documents during the transaction process.
17. Escrow Agent: The individual or entity responsible for handling the escrow process, including holding funds and coordinating the closing.
18. FIRPTA (Foreign Investment in Real Property Tax Act): A federal law that requires foreign sellers of U.S. real estate to pay taxes on the sale.
19. Home Inspection: A thorough examination of your property's condition, typically conducted by a professional inspector.
20. Inspection Period: A specified duration during which the buyer can conduct inspections and assessments of the property.
21. Lead Paint Disclosure: As part of regulatory compliance, to inform Buyer if there's any lead-based paint in the house, especially if it was constructed before 1978. It's a precautionary measure to ensure buyer is aware of potential health hazards.
22. Market Value: The price your home is likely to sell for based on current market conditions.
23. MLS (Multiple Listing Service): A database where real estate agents list properties for sale.
24. Offer: A proposal from a buyer to purchase your home at a certain price.
25. Open House: A scheduled event where potential buyers can view your home without an appointment.
26. Pre-approval Letter: A preliminary determination by a lender of how much they are willing to lend a buyer to purchase your home.
27. Proration: The division of certain expenses, such as property taxes or homeowners association fees, between the buyer and seller based on the portion of the time each party owned the property during the billing period.
28. Purchase Price: The agreed-upon price for which the buyer will purchase your home.
29. Seller's Disclosure: A document where you disclose any known issues or defects with the property.
30. Settlement Statement: A document that outlines all the costs and fees associated with the real estate transaction.
31. Staging: Arranging your home to make it more appealing to potential buyers.
32. Time of Acceptance: Upon mutual agreement on the terms and conditions of the sale, the transaction becomes legally binding. This signifies the pivotal moment when both parties commit to the transaction.
33. Title: Legal ownership of the property.
34. Title Insurance: Insurance that protects the buyer and lender against any defects in the title or ownership of the property.
35. Transfer Tax: A tax imposed by the state or local government when ownership of real estate is transferred.
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