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 Understanding real estate terminology can be of great assistance
when buying or selling a home, commercial property, or
investment property. In order to help you understand the terms
and words that are commonly used in real estate transactions, we
have prepared a list of real estate terms you should become
familiar with.
Be sure to
contact us
for any of your real estate needs for the Holden Beach,
Holden Beach, Ocean Isle, Shallotte and Supply
areas of Brunswick County, North Carolina.
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Understanding Basic Real Estate Terms
Interest Rate
The monthly effective rate paid (or received if you are a
creditor) on borrowed money. Expressed as a percentage of the
sum borrowed.
MLS- IDX
IDX, or broker reciprocity, is a listing sharing
arrangement between brokers within a Mulitple Listing Service.
Market Value
An asset's market value is the price it would fetch in the
market, if it were sold in the current marketplace.
Title Insurance
A type of insurance which guarantees the ownership and
quality of title to land.
Appraisal
An educated estimate of the value of a property on a
certain date given by a person, usually after an inspection of
the property.
As Is
Implied in most Agreements of Purchase and Sale, suggests the
buyer is accepting the property in it present state and
relinquishes and responsibility from the buyer.
Bankruptcy
a) A person who has done any of the acts that by law entitle
his creditors to have his estate administered for their
benefit;
b) a person judicially declared subject to having his estate
administered under the bankrupt laws for the benefit of his
creditors;
c) a person who becomes insolvent.
Bid
To offer (a price) whether for payment or acceptance.
Property Tax
A tax levied on real or personal property
Interest Rate
The percentage usually on an annual basis that is paid for the
use of money
borrowed from another.
Home Loan
a) Money lent at interest; b) something lent usually for the
borrower's temporary use.
Credit Risk
An estimate of the amount of credit that can be extended to a
company or person without undue risk.
Credit Union
A cooperative organization that makes loans to its members at
low interest rates.
Prime Rate
The lowest rate of interest on bank loans at a given
time and place, offered to preferred borrowers.
ARM
A mortgage whose interest rate is raised or lowered at
periodic intervals according to the prevailing interest rates
in the market.
Home Equity Loan
A loan or credit line that is secured by the equity the
borrower has in a home.
Mortgage
A temporary, conditional pledge of property to a creditor as
security for performance of an obligation or repayment of a
debt.
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