If you’re thinking of buying a home in Pickering and its surrounding areas, you may feel a little overwhelmed by all the real estate jargon you find. While working with a Pickering REALTOR® can help make the process easier to understand, there are a few words and phrases you can familiarize yourself with now to make it a little more understandable.
Below, we’ve summarized a few terms we think will come in handy when you’re looking at Pickering real estate.
Closing Costs
The closing costs are the costs associated with the ‘closing’ of a sale or purchase deal. These are essentially the legal and admin fees you’re required to pay to close the deal. Closing costs are distinct from the house price.
Equity
Equity refers to the difference between a home’s market value and the amount the owner still owes on the mortgage. It is the portion of the house that is officially owned.
Deposit
A deposit is the upfront payment a buyer makes to a seller at the time the offer on the property is accepted. It is used to show the seller that the buyer is serious about the sale. The deposit is distinct from the down payment.
Fixed-Rate Mortgage
You may have come across this term when shopping around for a mortgage. A fixed-rate mortgage is a mortgage plan that offers an interest rate that will remain the same for a fixed period. The fixed period is usually one to five years. After this period, the interest rate can change, and you may move to a different lender if you would like.
Home Inspection
A home inspection can be used by a buyer to determine if there are any existing or potential problems within the property. An offer can be conditional on a home inspection being satisfactory to the buyer.
Seller’s Market
A seller’s market means that there’s an imbalance between the number of buyers and available homes. This means that there are more buyers looking for a house in the market than there are homes available for them to purchase. During a seller’s market, properties can sell more quickly because of the increased demand.
Offer
An offer is a legal agreement to purchase a home. Offers can be conditional on factors including mortgage and a home inspection.
Dual Agency
Dual agency is when one REALTOR® represents both the seller and the buyer during a transaction. Throughout Canada, different rules apply to dual agency transactions. They differ per province.
Amortization
This term refers to the length of time you have to pay off a loan. In the real estate industry, this is the mortgage. In Canada, the maximum amount of time you have to pay off your mortgage is usually 25 to 30 years.
If You Are Looking To Buy Or Sell A Home In The Pickering Area, Call Bansal Team Today!
Are you looking to buy or sell a home in the Pickering area? Bansal Team is a team full of experienced REALTORs® from Pickering committed to making buying or selling your home as simple as possible. We’ve got a ton of experience in Pickering real estate, and we’re ready to help you today. Get in touch to find out more information about our services!