South Orange County Blog from Bob Phillips

Don’t Get Fooled By Tricky Terms When Purchasing Real Estate

Understanding Real Estate TermsWhen looking to buy or sell South Orange County real estate, confusing terminology can leave you feeling somewhat uneasy.

From a multitude of numbers to marketing jargon, property listings can provide you with an overwhelming amount of information — and it’s hard to know what’s important.

So, brush up on the terms below and don’t get fooled this April.

Median Days on Market

The median days on market is the midpoint of how many days it took for homes in that area to sell.

If it’s 30 days, then half of the homes sold quicker and half took longer than 30 days.

If you compare the real estate you’re considering to its area’s median days on market and you find that it’s been on longer, the sellers might be willing to take a lower offer.

Distressed Property

Properties are listed as distressed when the owners have defaulted on their mortgage loans or are about to.

As a buyer, you might be able to get a good deal on a short sale or a foreclosure, as banks many times list them below market value to try and recoup some of their loss and clear the property from their books.

An Active Versus Backup Status

If you find your dream home and then notice that it has a backup status, brace yourself for disappointment.

An active status on a home means the owners are accepting offers, while a backup status indicates that they’ve already accepted an offer.

If you know it’s the one for you, you can still place a bid in case the first offer falls through.

Pending Status

Another status is pending, which usually indicates that the transaction seems strong and unlikely to fall out of escrow, although a small percentage of pending sales does fall through.

While there are many new concepts and terms you will learn when purchasing your new home, the benefits of home ownership far outweigh any fear that you may have.

If you’re looking to purchase a new home soon, be sure to contact a licensed real estate professional who can cut through the jargon and find the home of your dreams. In this area, I am such an agent.

Shoot me an email, or give me a call, and let’s talk real estate.

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