Home Selling Terminology: The Basics You Need to Know

David Wilson Real Estate Leave a Comment

Selling your home isn’t just about staging your kitchen well, placing a For Sale sign in the front yard and waiting for the offers to pour in. It’s a tedious and often times consuming process that can leave even the veteran home sellers a little confused or unsure. So, whether you’ve been through the selling process before, or are taking it on for the first time, we’ve got a list of few basic terms you should know when it comes to selling.

CMA

Before putting your home on the market, it’s wise to complete a comparative market analysis, or a CMA. In short, this will tell you how much your home is worth by comparing it to other homes in the area, which can then help you determine the best price to sell your home for. The analysis will show active listings, which are the homes that are currently for sale in the area to help give you an idea of what the competition is like. They will also show pending listings which are homes that are now under contract. and sold listings, which are homes that just recently sold in the area. Finally, the analysis will show off-market, withdrawn or canceled listings, which are properties that are no longer for sale for a variety of reasons. All four elements of the CMA can help you navigate the task of pricing your home for optimal sell price.

FSBO

For Sale By Owner, or FSBO is the process of selling your home without a real estate agent or the help of a real estate broker. Oftentimes, sellers like this option because they do not have to pay a commission to an agent, and make a larger profit for themselves. However, for first-time sellers the process can be overwhelming, so doing the prep work and your homework before you sell is crucial to avoid any bumps in the roads.

Escrow

This is a financial arrangement where a third party holds funds, pending the completion of the contract between the seller and the buyer. Before these funds are given, the buyer might attach certain stipulations to the agreement, like cost of repairs they may discover are needed, or costs of inspections. Once the escrow agent finds that all the requirements are met by the seller, the funds will be released to them. This arrangement protects both the seller and the buyer and using a third party ensures the smoothest and most efficient transaction.

Contingency

When you’ve made it to the stage of contingency in home selling, you’re almost done. This is the when the buyer has made an offer but it’s contingent on a few criteria, which usually fall under three main categories: appraisal, home inspection and mortgage approval.  Once you’ve fulfilled and completed these three requirements, you will have just sold your home.

Selling your home should never be hard and if you’re unsure about your options or how the process works, we’re happy to help. Give us a call today at (919) 205-3402, and let us answer any of your questions!

About the Author
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David Wilson

For David Wilson, offering his clients a different and more cost effective approach to selling a home was what led him to launch Carolina's Choice Real Estate in 2003. With over 16 years of experience in real estate, Wilson provides expertise and a wealth of knowledge to the industry, which is evident by the $27,000,000 he has saved his clients in commissions since he started. A native of North Carolina, David watched his father work incredibly hard his entire life to provide for his family and in return emulates that same work ethic in his own career. Engaging with clients and hearing their stories is David's and his team’s favorite part of their work and helping clients move forward with the next chapters of their life is what drives and motivates his team everyday.