Everyone has a different way of approaching decision making. Your own approach is often based off of you personality type and temperament. Some of us dive in head first to a new situation or decision, giving all our energy to the task and project at hand. We ask questions as they organically come up along the way. Others of us take extensive research opportunities before the decision has to be made, taking notes and memorizing terms along the way. There’s no right way of doing things. It’s all just up to your personality and habits.
Whichever your typical decison-making methodology, we’ve prepared a list of basic terms a home buyer should be able to use with fluency. Whether it’s your first time selling and buying, or if you’ve done it all before, this list is a helpful guide.
- Market Value
This value is found after the initial home appraisal is completed. It’s the highest value your house is likely to sell for, in the current marketing. This value doesn’t take into consideration extraneous circumstances that could effect the market.
- Mortgage Insurance
Did you know that your home mortgage needs its very own insurance? Well, it does! There is a point however, when you can stop paying this insurance. Be sure to discuss with your appraiser and real estate team, so you don’t have to pay this amount longer than is necessary.
- Homeowner’s Insurance
Here’s a term you’ve heard before. What you might not realize is that there are two insurance pieces to this puzzle. Both property and liability insurance are included in your homeowner’s insurance.
This term refers not to the appraisal of your home, but to other homes on the market. Typically, two similar homes are used as orienting points to assist in deciding the value of your home. These two homes are often referred to as “comps”, which is of course, short for comparables.
With these terms fresh in mind, we hope you feel reinvigorated to get out there, make plans and make decisions. If you’re looking for help or have questions, feel free to contact us for assistance