Are you ready to become a real estate agent? Here are some important terms you will need to know.
Buyer’s agent and Listing Agent: A buyer’s agent represents the buyer in a transaction and the listing agent represents the seller. They may also be called a seller’s agent.
Fixed rate vs. adjustable rate mortgage: A fixed rate mortgage has a rate that doesn’t change for the life of the loan, common in a 30-year fixed-rate mortgage. An adjustable rate mortgage varies over the life of the loan.
Pre-approval letter: A pre-approval letter is given to a buyer by their lender with an estimate of how much they are willing to loan the buyer. It is necessary to put an offer in on a house.
Home Inspection: A Home inspection is usually scheduled after an offer is accepted on a home. A home inspector is hired by the buyer to thoroughly inspect the house top to bottom and inform the buyer of any major issues or defects and long term problems. The cost can be between $500-800 dollars.
Appraisal: The lender will order an appraisal of the property prior to closing. A licensed appraiser will come out to the house and estimate the house’s value as compared to other comparable homes in the area.
Offers and Purchase and Sale contracts: A real estate agent will fill out an offer for the buyer with the price they are willing to pay for the home and any contingencies they are asking the seller to make. The seller will either accept the offer or offer a counter-offer to the buyer until a price is agreed upon. If the offer is accepted, a purchase and sale will be drawn up by the real estate agent or the seller’s attorney. It is always a good idea to have an attorney look over the purchase and sale on both the buyer and seller end before it is signed. Once signed, a deposit is given to the seller’s agent to be put in an escrow account. This contract is legally binding.
Closing Costs: These are the expenses that the buyer and seller will be responsible for at closing time. These include attorney fees, recording fees, tax stamps, and property tax to name a few.
These are just some of the terms you can expect to see on your real estate exam and in your day to day dealings as a real estate agent. Visit www.agentrising.com to start on your road to your real estate career. We have all the tools you need to pass your real estate exam. We offer online courses as well as live hours to fulfill your requirements. You can also call Marie at 508-997-8844