3 Important Real Estate Terms You Need to Know

Whether you're on the buying or selling side of a real estate transaction, there will be some terms that both parties need to understand to ensure a smooth closing process. eXp Realty, LLC wants to make sure you're prepared and educated on some of these important key terms so that when it comes to making decisions when closing on real estate at the Lake of the Ozarks, you're ready.


 Here are 3 important terms you need to know:


Appraisal

An appraisal is an unbiased professional opinion of a home's value. This is an important part of the real estate closing process because it helps to determine whether the contract price is appropriate given the home's condition, location and features. It's also important to ensure the lender that they're not over loaning on a property that may not be worth the value of the requested loan amount.

Contingency

A contingency is something that could potentially happen in the future that may affect the real estate contract and/or closing. As an example, a contingency might be put in place on a purchase agreement if the buyer has a home that must be sold prior to closing on the subject home. If the buyer's home does not sell, the contingency may deem them within their rights to back out of the contract on the subject home. A contingency is just another way to protect either party in the event of potential future mishaps.

Earnest Money

This is money paid down by the buyer to show good faith to the seller of the buyer's interest and commitment to closing on the transaction. Earnest money is typically held jointly by the seller and buyer in an escrow account. If the buyer follows through with their commitment to purchase, the escrow money is generally credited toward their closing cost or cost of purchase. If the buyer defaults on the purchase agreement, they risk forfeiting those funds to the seller. Also, if a seller doesn't meet their end of the deal and the purchase agreement is terminated because of it, the buyer will likely be eligible for a refund of their earnest money.


There you have it, three important terms you'll need to know when closing on a real estate transaction. Whether you're a buyer or seller, it's important to understand the purchase agreement and know your due diligence in the process. eXp Realty knows that not everyone understands the ins and outs of real estate transactions. That's why we recommend hiring an experienced real estate agent at the Lake of the Ozarks for all of your selling and buying needs. Our agents are experts in the real estate industry and we have your best interest in mind throughout the entire process. Let us make your experience of buying or selling a home at the Lake of the Ozarks be a smooth and simple process. Contact us today to discuss your real estate needs!


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2011 REALTOR Salesperson of the Year
Missouri Association of Realtors

752 Bagnell Dam Blvd., Suite A
Lake Ozark, MO 65049

Office | 573.365.1555
Fax | 573.365.1766
Location: Lake Ozark, MO, USA

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