When buying Springfield MO real estate for the first time as an investor or every day aspiring home owner, it behooves you to know the terminology. Real estate lingo is often confusing. Also, buying a home isn’t just about finding the right architectural design, layout and home features. It’s also about property taxes, tax deductions, mortgage rates, debt and other financial issues.
According to a recent piece by bostonglobe.com, home buyers hear a lot about the “buyer’s market,” and “low inventory.” In Springfield MO, just like other cities across America, the buyer has an advantage because of high demand and low supply. Experts point out several real estate terms crop up in home listings. Knowing the real estate lingo helps first-time buyers filter through the options.
A Home Sold “as is”
When sellers know they have more potential buyers, they often sell as quickly as possible without making a lot of repairs. Your real estate agent helps you decide whether it’s prudent to make an offer on a home sold “as is.” A home sold as is means the owner prefers to forgo repairs as part of the deal. In a seller’s market, it’s more difficult to find a bargain, but a home sold as is does raise some red flags.
A Home Recently Renovated
A recently renovated home is likely a flipped home that the investor bought and fixed up for a profit. On the other hand, the home could be a former rental property. Some red flags include evidence of an amateur renovation. A good real estate agent figures out whether the improvements truly increase the home value.
A Home Sold By the Owner
If you have a good buyer’s agent, he or she will protect your interest when buying from an owner. A for sale by owner is often a red flag because real estate transactions are often complicated. A buyer’s agent helps you negotiate and view for sale by owner homes as well as new construction housing.
Other Common Terms
Other common real estate lingo includes the “closing,” “making an offer,” “fixed rate mortgages versus adjustable rate mortgages,” and “title insurance.” While engaged in the home-buying process, ask your real estate agent about what to expect.
At Realty Executives By Realty Choice, we love showing homes to first-time buyers as well as people who have owned many homes. For more tips on buying Springfield MO real estate in the hot seller’s market, please contact us.