Are you thinking about buying or selling a home but getting lost in the jargon of the real estate world? Don’t worry, you’re not alone! This video breaks down the most confusing real estate terms, from appraisal to zoning, in easy-to-understand language. Whether you’re a first-time homebuyer or a seasoned investor, you’ll walk away with a better understanding of the real estate industry.
00:00:00 Escrow
00:00:19 Closing costs
00:00:41 PMI (Private Mortgage Insurance)
00:01:05 Homeowner’s association (HOA) fees
00:01:31 Zoning
00:01:51 Deed
00:02:12 Appraised value vs. market value
00:02:42 Amortization
Trans States Realty
Your Local Tampa Bay Real Estate Company.
30+ Years of Real Estate Experience in Tampa Bay
Patricia Persaud AndreeWiltens
Realtor
813-428-3637
Tony Persaud, Jr.
Realtor
813-956-3935
Tony Persaud Sr.
Broker
Office: 813-963-1256
Escrow:
Have you ever heard of escrow in real estate? It’s a process where a neutral third party holds onto funds or property until the terms of a contract are fulfilled. The goal is to ensure a secure transaction for both buyers and sellers. So, when you hear the term escrow, just remember it’s all about security and peace of mind.
Closing costs:
“Buying a home? Don’t forget about closing costs. These are the fees that come up at the end of a real estate transaction and can include things like attorney fees, title insurance, and property taxes. It’s important to understand and budget for these costs so you’re not caught off guard at closing. Remember, closing costs are a part of the home buying process.”
PMI (Private Mortgage Insurance):
“Making a down payment of less than 20% on a home? You may be required to have PMI. That’s Private Mortgage Insurance, which protects the lender if you default on your mortgage. It may add to your monthly payment, but PMI can help you get into your dream home sooner. So, when it comes to PMI, just remember it protects both you and the lender.”
Homeowner’s association (HOA) fees:
“Buying a home in a planned community? Don’t forget about HOA fees. That’s Homeowner’s Association fees, which go towards maintaining common areas and community amenities. HOA fees can vary, so be sure to understand what you’ll be responsible for before making a purchase. When it comes to planned communities, remember HOA fees are just one more thing to consider.”
Zoning:
“Looking at properties? Don’t forget about zoning laws. These laws determine what can be built on a piece of land and how it can be used. Understanding the zoning laws in an area can help you determine if a property is right for you. So, when you’re on your next property tour, remember to research the zoning laws.”
Deed:
“Buying a home? Don’t forget about the deed. It’s a legal document that proves your ownership of the property. Keep your deed safe and up to date, as it will be necessary for future transactions. So, when you’re thinking about all the pieces of a real estate transaction, remember the importance of the deed.”
Appraised value vs. market value:
“Buying or selling a home? Know the difference between appraised value and market value. Appraised value is an expert’s opinion of a property’s worth, while market value is what buyers and sellers in the market are willing to pay. It’s important to understand the difference as it can impact the buying or selling process. So, when it comes to property values, remember the difference between appraised value and market value.”
Amortization:
“Getting a mortgage? Don’t forget about amortization. It’s the process of paying off a loan through regular payments, which include both principal and interest. Understanding amortization can help you make informed decisions about your mortgage and budget for your future payments. Amortization helps you fully pay off your loan and own your home outright by the end of the period. So, when it comes to your mortgage, remember amortization and plan accordingly.”