If you are hoping to sell your house fast in Louisville, KY, there are some real estate terms you should become familiar with. Below, we’ve compiled some of the lesser-known terms you might hear when selling your house in Louisville, KY. There are twenty-one Key Real Estate terms below, however there are more that you will encounter. I have included links to other sites with additional information. Please feel free to reach out to us if there is anything else you would like to know about the selling process. We are happy to answer all of your questions. +1 (502) 785-5000
Appraised Price
An appraised value is an evaluation of a property’s value by a professional appraiser. This can be done during the mortgage origination process or by the buyer or seller privately to help determine the value of the property. An appraisal can also be used for tax purposes or after a divorce. This is the most accurate way to determine the value of your property.
Assessed Value
The assessed value of a property helps determine how much a homeowner will need to pay in property taxes. The property appraiser will take into account location information, inspection information for the home, and recent home sales in the area. You would like this to be low for tax purposes. The assessment is not the same as an appraisal and should only be used for tax purposes. An appraiser or realtor will give you a more up to date valuation of your home.
Carrying Costs
The carrying costs are the costs you face each month to own the home. This includes things like your tax payments, insurance premiums, utility bills, and maintenance costs. You should always consider these costs when making a decision on an offer made on your house. Calculate these costs if you choose not to accept an offer. Often times it will offset an offer that was lower than your asking price.
Clear Title
A clear title means that there aren’t any other ownership claims to the property, nor are there any liens against the house. People are often surprised to learn a lien has been placed on their property from a health care provider, contractor, mechanic, or any other host of people who believe they have a claim against you.
Comparative Market Analysis
A comparative market analysis, or CMA, provides information to help determine the value of the property. It takes into account recent sales to help you figure out what your house is currently worth. This is normally provided by a realtor when they are trying to determine the price to list your home. With information on the web you may be able to come up with your own CMA, however a realtor will give you the best and more accurate CMA. That is what they do all the time and they know any special considerations for your property.
Contingencies
A contingency is a stipulation in the contract that needs to be met before the contract is legal and binding. Just about anything can be written into a contract as a contingency. Make sure you read over any contract before signing to ensure you know if there are any contingencies that impact you.
Covenant
A covenant formal agreement in which one party gives the other certain assurances. An example would be covenants of warranty in a warranty deed.
Delinquency
A delinquency occurs when a homeowner defaults on their loan. This is when a lender will actively begin the collections process, even initiating foreclosure.
Disclosures
A disclosure is a document that the seller provides the buyer, letting them know about any problems, defects, or known issues with the property. Failing to disclose a problem with your home can be considered fraud. You always want to be honest and up front with any issues you know about your property. It will avoid a lot of headaches for you and your buyer.
Encumbrance
An encumbrance is a claim against the property that restricts its transfer or use. A property lien is considered an encumbrance.
Foreclosure
A foreclosure occurs when a homeowner fails to make their mortgage payment, typically for 90 days. The owner waives all rights to the property and the home becomes the possession of the bank. You are still able to buy or sell a property in foreclosure most of the time. You will need to know there is extra work and costs involved, so make sure you work with a real estate attorney who is familiar with foreclosures. We can help you through the process to Stop Foreclosure.
Inclusions
Inclusions are personal property that is included in the home sale. This can be things like appliances, furniture, or outdoor items.
Market Value
Market value is a valuation of the property in which the parties are free of pressure to complete the transaction and all details of the house are known. It can be formulated by finding the average between the highest price a buyer would pay and the lowest price a seller would accept. The CMA mentioned above will usually give you the best Market Value.
Mechanic’s Lien
A mechanic’s lien is a lien against the property which will secure the payment of contractors, laborers, and those who provide materials.
Negative Amortization
While amortization refers to paying off your loan, negative amortization happens when the payments you are making aren’t enough to cover the interest and the amount you owe becomes greater as opposed to less.
Quitclaim Deed
A quitclaim deed transfers the interest in real property from one person to another.
Sale-Leaseback
A sale-leaseback occurs when a buyer purchases a property and then leases it back to the occupant.
Short Sale
A short sale occurs when an owner sells their property for less than what is owed, allowing the lender to recoup some of the cost of the loan as an alternative to foreclosure. This usually takes a long time to process, so do not let the name fool you.
Title
The title refers to who has legal ownership and who can legally use the property. Just like a car, it is how you claim ownership of the property. In states like KY which is a dowry state even if the spouses name is not on the title they also have legal ownership and will have to sign off on any contract to sell the property.
Title Defect
A title defect is when there is an adverse claim, somewhere in the chain of ownership. It can have an impact on who has legal rights to the property.
Waiver
Voluntarily giving up a right, claim or privilege. It removes liability for the other party in the agreement.
When trying to sell your house fast in Louisville, KY, you will likely hear a lot of real estate jargon thrown your way. It’s important to know what is being said and how the terms used will impact you. Do your homework before selling your house fast in Louisville, KY so you don’t miss something you should have been aware of!
At Grace Buys Houses we believe an informed buyer or seller will make the best decision and not have regrets down the road. We help people understand their options so they can make the best decision for them and their family.