If you are hoping to sell your house fast in Minneapolis St Paul, 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 Minneapolis St Paul. 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. (612) 444-5088
An appraised value is an evaluation of a property’s value by a professional appraiser. The appraisal 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.
Assessed property value is essentially the worth of your property compared with similar and surrounding properties, while the total land value is the worth of your property, including all improvements and upgrades done to it. 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.
The carrying costs are the costs you are facing each month to own the home. Carrying costs includes things like your tax payments, insurance premiums, utility bills, and maintenance costs. These are costs that happen no matter if someone is living in the house or not.
A clear title means that there aren’t any other ownership claims to the property, nor are there any liens against the house. The house is owned by the person on the title clear of any things owed against it.
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. The property that it is comparative with must be like.
A contingency is a stipulation in the contract that needs to be met before the contract is legal and binding.
A formal covenant agreement in which one party gives the other certain assurances. An example would be covenants of warranty in a warranty deed.
Delinquency occurs when a homeowner defaults on their loan. This is when a lender will actively begin the collections process, even initiating foreclosure. This can be a loan on the property or loan taken out against the property, and the property is held as a lien holder.
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, even if the house is sold as-is.
An encumbrance is a claim against the property that restricts its transfer or use. A property lien is considered an encumbrance. Any loan or legal connection with the property is an encumbrance.
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. This whole process can take from 4 months to 24 months to complete.
Inclusions are personal property that is included in the home sale. This can be things like appliances, furniture, or outdoor items. Normally its anything attached to the house, plus items that are arranged before the closing to be transferred to the new owner.
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.
A mechanic’s lien is a lien against the property, which will secure the payment of contractors, laborers, and those who provide materials. If work is completed on a property, a homeowner should get a lien waiver from a contractor once all payments for services have been completed and are paid in full.
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.
A quitclaim deed transfers the interest in real property from one person to another. This is the easiest and most efficient way to transfer ownership of a deed.
A sale-leaseback occurs when a buyer purchases a property and then leases it back to the occupant. Both the owner and the tenant must agree to terms of the sale and lease in contract form.
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.
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.
Title defects are any claims or other factors that could cause the title to a property to be declared invalid. Sometimes referred to as a cloud on title, the title defect can be any one of a wide range of issues that cause the current title to be called into question. Examples of a title defect range from simple wording that does not comply with standards in place at the time of the issue of the title to the discovery of other claims on the property that were not acknowledged at the time the deed was issued.
Voluntarily giving up a right, claim, or privilege. It removes liability for the other party in the agreement. About a deeds title, it is also called a lien waiver.
When trying to sell your house fast in Minneapolis St Paul, 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 Minneapolis St Paul, so you don’t miss something you should have been aware of!