7 Real Estate Terms You Can't Afford To Ignore When Seeking Houses For Sale

Posted on: 26 July 2017

When you are searching for a house for sale, you may be easily wowed by great views, a lot of square footage, curb appeal, or the number of bedrooms a house has. However, when you are searching for a home, it's important to learn a few key terms that will empower you to dig deeper and be able to communicate with home sellers in a way that addresses their needs as well as yours.

Certain words and phrases are used often in world of real estate for a variety of reasons. They may help shorten the time it takes to describe a situation or perk. Knowing a few key terms can also help you more effectively search for houses on real estate agent websites and social media pages. Consider these seven real estate terms and phrases you can't afford to ignore if you want to effectively find and ultimately buy your dream home.

  1. Amenities – This refers to the perks that a condo building or apartment building offers its residents. For example, a condo building may offer a swimming pool, courtyard, playground, fitness center, or other common area that residents can enjoy.
  2. Caveat Emptor – This Latin phrase simply warns the buyer to beware. It's a reminder to do your research on a home before making an offer and be sure to get inspections. The word "caveat" by itself may refer to a word of warning that's placed as a contract amendment.
  3. Disclosure – In a lot of states, home sellers must notify home buyers of major known defects or issues with the house. That's where the term disclosure is often applied in real estate.
  4. Encroachment – This happens when a structure on one piece of property intrudes or overlaps on someone else's property. When you are looking for a home, be sure to know the boundaries of the property to determine whether there are any encroachment issues.
  5. Market Value – The value of a piece of property that's estimated in relation to the current state of the real estate market. A house may have a different market value in different years.
  6. Multiple Dwelling – This type of building offers two or more residential units, so a home buyer could purchase the home with the intention of living in one residential unit and renting the others.
  7. Primary Residence – One's primary residents refers to the place where the person lives for the majority of the year. For a house, condo, or apartment to be considered a primary residence, the person has to live there at least longer than half the year.

Finally, keep in mind that these real estate phrases and terms are useful to know in the home-buying process. You may also want to ask your real estate agent about any colloquial terms that you should know. Staying on top of the language of your local real estate world can empower you to better understand the real estate transaction from start to finish.