The real estate world has a broad vocabulary. Knowing a few of these important words can be very helpful when looking to sell a home in Salt Lake City, Utah. Without adequate knowledge of these terms, the already complex real estate market might become even more challenging to navigate.
Thus, here are some important terms to know when looking to sell a house in the Salt Lake City:
iBuyers are companies that utilize digital means to broker home purchases. They offer quick home sales for sellers looking to sell their properties as quickly as possible. These companies take on the entire financial burden relating to your home sale.
2. Days On Market (DOM)
DOM is the number of days a property has been on the real estate market. The DOM period is calculated as the time between the property listing and the day a sales contract is signed off by both the seller and home buyer.
Average DOM values are used to project how many days it is reasonable for sellers to expect their properties to last on the market. Lower DOM values convey that properties would typically sell faster and vice versa.
If a seller doesn't want to spend a home repair and upgrade, they are expected to advertise their properties as “as-is”. Of course, this means that the house would sell considerably lower than the property value in the area. However, due to various factors such as wanting a quick sale or the necessity to move to another house as soon as possible, sellers may opt to sell their to home-buying companies. Axess Home Buyers is one such company in Salt Lake City that can accommodate the sale of a house “as-is”.
4. Backup Offers
Backup offers are sometimes submitted to sellers by prospective buyers. These offers are drafted by potential buyers when there is already an existing offer for the property. They’re submitted in the hope that the offer being brokered or dealt falls apart. It conveys the special interest of a buyer in a property, and higher offers can be used to sway the decisions of home sellers. Backup offers are restricted to one according to the law.
5. Blind Offer
When buyers are concerned about the loss of opportunity to buy a home, they might make a blind offer. An offer is deemed blind when the buyer has had the chance to inspect a property but passed off on the inspection to immediately make an offer. This offer type allows the buyer to reserve the first place in a highly competitive real estate market, and this can be due to multiple reasons.
6. Buyer's Agent
A buyer's agent is known as a licensed selling agent tasked with the responsibility to find a buyer's next property. They might contact you as a home seller on behalf of their client to find out information about your property. They advise their clients and negotiate property prices on their behalf to arrive at the best price possible for their clients.
7. Listing Agent
A listing agent performs functions similar to that of the buyer's agent on the seller's side. They are licensed professionals who are armed with the right amount of skill to market the seller's property where most applicable in the real estate market. They also represent the seller's interests by ensuring they get the best deal possible from their property sale.
8. Multiple Listing Services
Commonly referred to as MLS, these are databases that allow sellers, agents and brokers to put up information about a property online. An MLS-listed property is logged with a listing agent who, in turn, markets the properties. The buyer's agents can then check with the listing agents for information on any of the properties listed.
9. Closing Costs
Closing costs are a wide range of financial costs relating to property deal closures. Closing costs might include lender charges, the title company, attorney payments, and insurance companies' premiums. All these costs are paid before the actual closing takes place.
Closing is the term used to communicate the finalization of a property sale. At this stage, both parties involved in the sale—the seller and the buyer—are expected to append their signature to the documents for the property sale. Money must have exchanged hands and the registration with authorities should be ensured. The home buyer, at this point, is given unfettered access to their new home.
11. Home Sale Contingency
The home sale contingency is used by buyers to convey conditions that they need to personally meet to complete the purchase of a seller's property. Some contingency factors include finances and the sale of a house they’re currently inhabiting, among others. If sellers are comfortable with such contingencies, they'll permit it. Otherwise, they let the prospective buyer go.
All the discussed terms are necessary to arm a home seller in Salt Lake City, Utah with adequate information ahead of a sale. This is important because while getting the sale done, an individual can easily get submerged in the plethora of industry terms. Knowing this also can help individuals selling their homes to be wary of opportunists.