Key Real Estate Terms to Know When You Want to Sell Your House Fast
Real estate is a dynamic and multifaceted industry that requires the proper knowledge and sales skills to master. Although it does require hard work and due diligence, anyone can wrap their minds around the key concepts if they take the time to learn the basics. Here are a few key terms that you should understand if you’re looking to sell your home fast.
1. Appreciation / Depreciation
If you are selling your home, you will likely hear the words “appreciation” and “depreciation” thrown around. These terms refer to the value of an asset — in this case, a home. Appreciation means the asset is increasing in value over time, and depreciation means that the value is decreasing.
2. After-Repair Value (ARV)
The after-repair value or ARV refers to the price you’ll likely get for a home after the necessary renovations are done. This is a figure that investors heavily scrutinize because it will determine whether or not a property is a smart investment. As a good rule of thumb, investors will be looking to purchase your home for 65% of the ARV if it still needs work because this will give them a healthy margin on the deal.
3. As Is
A property being sold “as is” means that the owner is not willing or able to put any work into the property and the buyer should expect it in its current condition. If you are looking to sell your home as fast as possible, marketing it “as is” is a good strategy. However, you should expect discounted offers compared to a home that is up to market standards.
The closing refers to the process during which the deed is delivered, documents are signed, and money changes hands. This is typically the most crucial part of the transaction and is the period where most issues tend to arise. The smoother you can make the closing process by having necessary documents and professionals ready to go, the faster you’ll be able to sell.
5. Competitive Market Analysis (CMA)
A competitive market analysis is an evaluation of a property’s potential listing price based on a comparison to other similar properties in the neighborhood and is compiled by a real estate professional. This is not to be confused with an appraisal, as a CMA is not an official valuation. But it can be a useful tool if you’re looking for an educated opinion on a smart listing price for your property.
Escrow refers to a third-party account that is not controlled by the buyer or seller. An escrow account is typically controlled by a broker and will hold the necessary funds between the time a buyer puts down a deposit and when the deal is closed.
7. For Sale by Owner (FSBO)
For sale by owner refers to a property that is being offered directly by the seller without the help of a real estate agent. You may decide to go this route if you are looking to sell fast, but you’ll have to offer an attractive listing price to ensure a steady stream of potential buyers.
8. Market Value
This term refers to the amount a property should be worth under current market conditions. This is different from an assessed or appraised value, which is determined by licensed officials. The market value is a figure that can be determined by a CMA and refers to a general price that the home should get if its condition is up to the appropriate standards.
The title is a document that proves who owns the property. A title search can be conducted to confirm the property’s ownership and determine if there are any outstanding liens or other claims on the home. If you choose to sell your home without an agent, you may have to enlist the services of a title company to provide proof of ownership at the closing.
Those looking to get their home sold as quickly as possible in Stockton, CA, should consider contacting Frank Buys Houses. They will give you a fair cash offer on the spot, no matter what condition the property is in, and save you all the hassle of listing it yourself.