Glossary of Terms to Know Before Entering the Distressed Real Estate Market
It is incredibly important for homeowners and sellers to be aware of the real-estate glossary before they hit the market. If you are trying to sell a foreclosed or distressed property, it is even more important that you come across as someone who is well-aware of the distressed sales market. As is, it is not easy to get the price your distressed property deserves. Coming across as naive or oblivious will make it even more challenging for you to demand the right price. Here is a glossary of terms you must familiarize yourself with before you put up your distressed property for sale.
Glossary of Terms
Appraisal: A factual analysis-based opinion of the value of a property.
Amendment: An amendment can be any change — alteration, addition, or correction — that does not in any way change any tenets or stipulations of the original agreement.
Chain of Title: A summary or sequence of transfers or conveyances that can be used as evidence of title. The Chain of Title also includes within itself all facts or records capable of affecting the marketability of a property.
Amortized Loan: Also referred to as a Level Payments Loan, an Amortized Loan denotes a loan paid off entirely, including interest and principal, through equal or near-equal installments.
Appreciation: Appreciation simply denotes the increase in the value of a property.
C.C. & Rs: C.C. & Rs define the covenant, codes, and regulations observed while planning a community. These regulations are important as they give the community or the association the freedom to implement certain laws or rules to be followed by and common to those inhabiting the community.
Closing: Closing refers to the final settlement of finances and other aspects between the buyer and seller of a real estate property.
Condominium: A condominium is a building or complex of buildings with individually owned units and joint ownership of the common area.
Conventional Mortgage: Conventional Mortgage is a loan facilitated by investors and not guaranteed or insured by a government agency.
Counter Offer: A Counter Offer refers to an agreement to sell a property on specific conditions, made by a seller in response to an initial offer made by the potential buyer and rejected by the seller.
Deed: A deed is a legal document that conveys the transfer of title.
Deed of Trust: A Deed of Trust is a legal document that many states, such as Arizona, use in place of mortgages to secure lenders’ rights.
Discount Points: Discount Points refers to the additional charges implemented by a lender at the time of sanctioning loan. Each discount point is equal to one percent of the loan value. These additional charges are applied as they allow lenders to increase the rate of return.
Earnest Money Deposit: Earnest Money Deposit is the down payment made by a buyer to secure a deal.
Easement: An Easement denotes a nonpossessory right to access a property for a specific purpose. An easement works through a grant or agreement.
Equity: Equity refers to the real market value of the property. It is calculated by analyzing a home’s fair market value minus the outstanding balance of liens on the property.
Escrow: An Escrow is a bond, deed, or contract kept in the custody of a third party (Escrow Agent) and takes effect only when a specified condition has been fulfilled. When everything that is needed for carrying out a contract has already been deposited with the third-party, the financial arrangement is called Complete or Perfect Escrow.
The Final Word
When it comes to foreclosed or distressed properties, buyers often try to negotiate and get a bargain, thereby leaving the seller in the loss. Thus, it is always a good idea to enter the market with the help of professionals or experts. If you need cash for your distressed property, reach out to us. At JAM Properties, LLC, we are a real estate solutions and redevelopment company that buys properties directly from homeowners for cash. Learn more about how we can help you by calling 949-438-4343.