As final cap on our seller series, we wanted to end by providing real estate terms that you will encounter during the listing and selling process. Comparative Market Analysis and Home Staging previous discussed and are critical pieces to selling a property. Similar to the posts in our buyer series, provided below are several key terms that are important to you as a seller.
As-is: This term must be known by all sellers. It means that you have the right to stipulate that as a seller, you will not make any modifications or repairs to the property prior to the sale. Yes, this is a thing. No, you don’t have to worry about a lengthy to-do list of repairs requested by the buyer.
Market value: The value of a home or property under normal market conditions. (Recessions are not normal market conditions – thankfully). Market value and fair value are interchangeable.
Final walk-through: Although this is completely by buyers, sellers need to be aware this is coming at the end of the transaction. Most buyers and/or their agents will complete a final walk-through of the property to ensure no defects or other issues were missed during other inspections.
Capital Gain: What we want every seller to have! Capital gain is your home or property selling for more than the initial price, which means that you receive additional profit during the home sale.
Title: Not the same as a deed. A title is a historical record of transactions of the property that will include sales, purchases, liens, and any tax issues. A title search is typically performed in the later stages of the transaction to confirm the seller actually owns the property and has a right to sell.
Closing Costs: Costs incurred throughout the transaction for lawyers completing paperwork, title insurance, and assessment of the property. Closing costs typically amount to between 1 and 5% of the mortgage and are paid at the completion of the sale of the property.
So wherever you are in the selling process, we hope this series had been informative and helpful. It is our goal to provide useful content to our clients and beyond regarding real estate and life in Middle TN. If you have additional questions regarding these terms or other concerns for selling your home, leave a comment or contact us!
“The major fortunes in America have been made in land.” – John D. Rockefeller