I totally get it! You’re thinking about selling your home but you’re feeling a bit overwhelmed by what’s involved.
So many “gurus” out there telling you to do so many things.
And then, to make matters worse, they use terms that sound almost like a foreign language.
Here are some home-selling terms and their meaning in plain English. So long as you have an experienced agent representing you (like me!), no need to worry about fully understanding the nuances
CMA (a “Comparative Marketing Analysis” or “Home Valuation”)
A CMA is an analysis real estate pros perform, looking at the local market and comparable homes that recently sold (often called “comps”) as well as those currently on the market and are pending (or failed to sell). After studying, your real estate agent prepares a report estimating your home’s current market value.
Escrow (aka the “paperwork” held by a third party)
The term escrow involves a number of things, including payments, documents, etc. held by a third party (often the listing broker). When a buyer’s offer is accepted, s/he will write a deposit check (often referred to as “earnest money.” This money is held by the third party, in escrow, until the transaction closes. As a seller, you don’t have to know the specifics here….you can rest easy knowing your agent & brokerage have everything well in hand!
Contingency (a qualification or condition prior to moving forward)
Often when a buyer submits an offer, the contract will include a contingency or two. Two common contingencies are a mortgage contingency and an inspection contingency. The first means the buyer needs a mortgage in order to purchase your home (quite common & expected in most cases) and so the lender requirements for the mortgage must be met before the buyer can move forward. The second contingency simply means that inspections will be made of your home and any issues found during inspection will be negotiated and agreed to in order to close. Your agent can show you how to best protect your interests when your buyer’s offer has these contingencies.
Net (your “bottom line”)
Some offers are for a straight purchase price, while others have a purchase price as well as a seller’s assist. In the latter case, the price less the assist is the net offer (in other words, what you will net from the sale if accepted). An experienced real estate pro will explain pricing strategies to ensure you get the most money possible for your home.
I specialize in making my clients’ home sale as stress-free as possible. Experience your BEST moving experience….let’s chat today!