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Buying Your Katy-Cinco Ranch-Richmond Area Home For The Best Price!

Buying Your Katy-Cinco Ranch-Richmond Area Home For The Best Price!


Buying Your

Katy-Cinco Ranch-Richmond Area Home

For The Best

Price!

 

Chapter 18  Part 1 Real Estate Terms You Should Know

Fred Miller, Realtor serving Katy, Cinco Ranch, Pecan Grove, Richmond, Westpark Tollway, Fulshear. FredMiller9@gmailcom , www.RichmondKatyHomes.com, Office receptionist: 281/342-2288 Cell 281/924-2531

Every business has its own language. Before you get into learning the best ways to maximize the sale price of your home, familiarize yourself with the terms of the business so you will be speaking the same language as the professionals.

Real Estate. Includes real property (the good earth). Does not include moveable items (personal property). Used loosely in common use age to include structures affixed to it.

Real Property. The combination of the land and improvements and the real estate rights that go with it. (Does not include personal property)

Fair Market Value. The highest price, in terms of money, that the property will bring to a willing seller if exposed for sale on the open market while allowing a reasonable time to find a willing purchaser, buying with the knowledge of all of the uses, and with neither party acting under necessity, compulsion or peculiar circumstances.

Assessed Value. A valuation placed upon the property by the local Central Appraisal District as a basis for taxation. This is NOT THE SAME as fair market value.

Appraisal. The act or process of estimating value. Complete appraisals are done for the lender who is making the mortgage on the house. The appraisal price may or may not match the purchase price of the house or the assessed value by the Central Appraisal District and is completed by a licensed professional for the purpose of providing an unbiased opinion of value.

Earnest Money Contract. An offer to purchase a house is written on this state promulgated form. It is not an enforceable contract until signed by the Seller and Buyer. The contract may be firm, or it may have the condition that you must obtain financing before the contract is enforceable (This is spelled out in the form called “Third Party Financing Condition Addendum. The contract also has a Termination Option clause that gives the buyer the unrestricted right to terminate the contract by giving notice within a short period of time for an additional small amount of money.

Earnest Money. A personal check that is submitted with the Earnest Money Contract. The realtor keeps the check until the contract is signed by all parties, then the check is deposited in an “Escrow Account” by the Title Company.

Option Money. A personal check that is submitted with the Earnest Money Contract. It is a check made out to the Seller. This check is delivered to the Seller when the Earnest Money Contract is signed by all parties, and the Seller cashes the check. It is usually applied to the Purchase Price if the Sale goes through.

Next Chapter:  Real Estate Terms continued.

Fred Miller, Realtor serving Katy, Cinco Ranch, Pecan Grove, Richmond, Westpark Tollway, Fulshear. FredMiller9@gmailcom , www.RichmondKatyHomes.com, Office receptionist: 281/342-2288 Cell 281/924-2531