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Decoding Lakewood Real Estate Lingo


May 25, 2016

Do you ever feel like real estate agents speak a different language? With so many acronyms, abbreviations and industry-specific terminology, it can be hard to understand what’s going on! If you’re looking to buy or sell a home on the Lakewood real estate market, prepare by familiarizing yourself with these common terms:

As-is
When a Lakewood real estate listing is sold as-is, that means that the seller will not be making any repairs or upgrades to the home prior to the sale. Although buyers may be turned off by the fact that the seller will not make any repairs, as-is listings aren’t always a bad thing. Many times, buyers will be able to negotiate a lower price on the Lakewood real estate listing to compensate for the repairs needed. Learn all about as-is offers here.

Contingencies
As a buyer on the Lakewood real estate market, you have the right to put in an offer on a home with certain contingencies. This means that before you will go through with the deal, you need certain conditions to be met by the seller. Typically, these conditions revolve around financial issues or repairs that the buyer is asking the seller to make.

Title Insurance
Title insurance policy protects Lakewood real estate buyers in the rare case that the seller did not have the rights to transfer ownership of the property. Because it is for the buyer’s benefit, it is typically paid by the buyer not the seller.

Closing Costs
On top of the price you pay for your new home on the Lakewood real estate market, buyers will also have to pay closing costs. These costs generally consist of taxes, loan processing fees and title insurance. Although every situation is different, many Lakewood real estate agents recommend that buyers expect to pay about 2-5% of the home’s price during closing.

MLS
MLS, or the Multiple Listing Service, collects information about all of the listings within a certain region. Brokers use the MLS to search for homes that match what their buyers are looking for, or to present their sellers’ homes to other brokers in the area. The general public does not have access to the MLS, so potential Lakewood real estate buyers must go through a broker to see its content.

Comps
You may have heard your Lakewood real estate agent saying that he or she has pulled comps. What does this mean? Comps are comparable homes or listings in the area that are used to gauge whether or not a home is fairly priced. For example, if you are interested in purchasing a home that is listed at $400,000 but a similar home nearby is listed at $200,000, your agent may be able to negotiate a lower price based on these comps.

Now that you understand the language of the Lakewood real estate market, it’s time to connect with a real estate agent who can guide you to the home of your dreams. Contact us at 720-220-2059 to talk to the experienced agents at Colorado Home Sales.