Confusing Terms of the Trade When Purchasing Charlotte Real Estate
When looking to buy Charlotte real estate, it’s not uncommon to find a bit of confusing terminology both online and when your lender or agent are explaining the process. From a multitude of numbers to marketing jargon, property listings can provide you with an overwhelming amount of information — and it’s hard to know what’s important. So, brush up on the terms below to help you understand part of the home buying jargon.
List-to-Sales Price Ratio
This is an important number to pay attention to when choosing a REALTOR®. The percentage is calculated by what a home was initially listed for, divided by the actual sale price. The closer an agent’s percentage is to 100, the better if you’re a seller; if it’s low, that could be an indication that they routinely list homes too high. As a buyer, however, you WANT to see that list-to-sales price ratio lower than the community average. This means that your buyers agent possesses good negotiating skills.
Days on Market
The days on market is the average of how many days it took for homes in that area to sell. If it’s 30 days, then half of the homes sold quicker and half took longer than 30 days. If you compare the Charlotte real estate you’re considering to its area’s average days on market and you find that it’s been on longer, the sellers might be willing to take a lower Offer.
Properties are listed as distressed when the owners have defaulted on their loans or are about to. As a buyer, you might be able to get a good deal on a short sale or a foreclosure, as banks usually list them near (sometimes below) market value to try to recoup some of their loss.
Active Versus Conditional Verses Pending Status
If you find your dream home and then notice that it has a pending status, the buyer has gotten lending approved and has completed their Due Diligence. An active status on a home means the owners are accepting Offers. Conditional status (continue to show) means that the seller has a Contract on the home and that the current buyer is working through the Due Diligence period. If you know this home is the one for you, you can still place a bid in case the first Contract falls through.
If you’re looking to purchase Charlotte real estate, please let me help you cut through the jargon and find the home of your dreams. Call me at (704) 491-3310 or email me at [email protected] for more information.
© Debe Maxwell | Savvy + Company Real Estate | [email protected] | Confusing Terms of the Trade When Purchasing Charlotte Real Estate