Are you getting ready to sell your home? There’s a lot to know during the process—and if you work with an agent who’s a true expert, they’ll be with you at every step. When you’re in the online research phase, real estate terminology can be more than a little confusing. With that in mind, we wanted to demystify some of the jargon around selling a home.
Here are seven real estate terms that every home seller should know…
1) Seller’s Market
A seller’s market works in your favour. It happens when demand for local homes outstrips supply. The result is higher prices and (in many cases) all-out bidding wars. When you’re selling, you can make the most of these conditions with the right pricing, marketing and negotiation strategy. It all starts when you partner with the right agent!
2) Agreement of Purchase and Sale
Your Agreement of Purchase and Sale is a legal contract between you (the seller) and your buyer. When you’ve accepted an offer (and completed negotiations, if you go that route)—this document will solidify the terms of your transaction. After both parties have signed the agreement, it’s legally binding—so make sure your lawyer reviews it carefully.
3) Comparative Market Analysis
A comparative market analysis (CMA) is a tool agents offer sellers to help them make informed pricing decisions. This document assesses recent prices for nearby homes that are very similar to yours. There are a number of factors to consider—from age, condition, and square footage—when choosing comparable properties. It will also outline current inventory on the market so that you know what competitive properties there are for potential buyers. Fortunately, an experienced agent will have it down to an art.
4) Listing Agreement
If you don’t know what a listing agreement is, you’re not alone. It’s a contract between you (the seller) and a brokerage—one that gives them permission to list and market your home. This useful document ensures that your real estate representative is obligated to act in your best interests. For your part, signing a listing agreement says that you’ll work exclusively with the brokerage in question.
5) MLS (Multiple Listing Service)
The MLS is a massive database that REALTORS® use to share listings. It allows them to connect buyers and sellers to pave the way for successful transactions. It’s also known as the most comprehensive source of market data—and an incredible marketing tool. If you want to maximize your home’s exposure, listing it on the MLS is the very first step towards achieving that goal.
6) Selling As-Is
Most sellers embrace strategic home preparations, as they can lead to a faster sale and a higher price. Having said that, there are those who would prefer to forgo this step for a no-fuss, no-muss sale. That’s where selling “as-is” comes in. If you list with this stipulation, potential buyers must be willing to accept your home in its current condition—flaws and all. The major downside is, you almost certainly won’t get as much money for it as you otherwise would (and your buyer pool may be smaller).
7) Seller Disclosure
As a seller, you have an obligation to disclose latent defects (those that aren’t visible to buyers and may not be apparent to an inspector). Mould is a great example. If you know of any major issues with your home, you’re duty-bound to speak up. Fail to do so, and you could face legal repercussions if they’re discovered later on. Your agent can help you figure out the best way to disclose any potential defects.
Interested in learning more about our selling process? Get in touch—we’re happy to answer all of your questions—and help you put your property on the market if the time is right!
