Is it your first time buying property in the D.C. metro area? Here's some terms you should know to fully understand your transaction.
10 Real Estate Terms First Time Home Buyers Should Know
- Title: A bundle of rights in a piece of property. The Title Company will provide you with the preliminary title report for you to review.
- Insurance: Choose your homeowner's insurance and provide that information to your broker. Be sure to gather 3 or more quotes before choosing. Here is an article help understand the process of making that choice.
- Offer: An agreement between a buyer and a seller to purchase real estate aka a sales contract.
- Recording: The day after signing the ownership of the property will be transferred to the buyer. The day you receive the keys!
- Signing: Schedule closing as soon as you receive the Okay from you broker. This is when you will signing for the home. The process takes about an hour. Read our article on what to expect on closing day for more information!
- Home Inspection: Examination of the property's condition. Usually performed by a qualified home inspector of your choice. Before hiring a home inspector, read this article!
- Closing Cost: Fees paid at the end of the transaction either by the seller or buyer or both. They include taxes, insurance and other lender expenses.
- Earnest Money: Deposit made to a seller showing the buyer's good faith in a transaction. Typically held in a trust or escrow account. Learn more about the Earnest Money deposit here.
- Contingent: Offer on a home has been accepted but finalized sale is contingent upon certain criteria.
- Appraisal: Property and/or land valuation completed by an appraiser who determines the market value. This process can take up to 2-4 weeks.