If it’s your first time buying or selling a home, you probably feel overwhelmed with the vocabulary and terms being thrown at you.
While you can piece some together with context, others may have you scratching your head in confusion- even after being explained. Worry not; we are here to help! Below are common real estate terms and what they mean!
Escrow/Escrow Holder/” In Escrow”
Escrow is just the term for a legal holding account. It’s done by a third party who collects the necessary documents and money, and holds onto those until a predetermined condition is set.
Fun fact, the word “Escrow” comes from the French word “Escrou,” which means a scrap of paper or scroll typically indicative of a third-party deed!
Equity
Equity is the investment an owner has in their home. Equity is great leverage, especially for future household-related loans!
Closing Costs
These are the final fees you must pay- typically, they include fees charged by anyone involved, such as: agents, HOAs, taxing authorities, attorneys, lenders, or title companies.
HOA
HOA stands for Homeowners Association. It’s a private association within a community- typically in condominiums or townhomes. If you are looking into a home that is within an HOA, you should know that you have to abide by their rules and pay dues. Failure to comply or pay can lead to additional fines, liens, or in extreme cases, foreclosure.
At Long and Foster Real Estate, Liz Wilson has years of experience serving Lake Anna and the surrounding areas, such as: Spotsylvania, Fredericksburg, Louisa, Mineral, Bumpass, Orange, and Charlottesville. Her years of experience allow for in-depth knowledge of the area and expertise in both selling your home and finding you your perfect new home.
When you’re ready to sell your home, and begin looking to purchase a new one, call Liz at 540-226-6475 to learn more about working together!