Looking to sell your house quickly in Columbia? Understanding real estate terminology can make the process much smoother. As a family-owned business with over 10 years of experience in the South Carolina Midlands, we’ve compiled some essential but lesser-known terms you might encounter when selling your property in Columbia. If you have any questions about these terms or the selling process, please reach out to our team of licensed professionals. We’re committed to providing transparent, hassle-free solutions for homeowners in any situation. 803-592-2353
Appraised Price
An appraised value represents a professional appraiser’s assessment of your property’s worth. This evaluation typically occurs during mortgage processing, though buyers or sellers may request one privately to determine fair market value. An appraisal might also be needed for tax purposes or following a divorce settlement.
Assessed Value
The assessed value determines your property tax obligations. Local property appraisers calculate this figure based on your home’s location, condition from inspection reports, and comparable recent sales in your neighborhood.
Carrying Costs
Carrying costs encompass all monthly expenses associated with homeownership. These include property tax payments, insurance premiums, utility bills, and ongoing maintenance expenses—costs that continue accumulating when your property sits unsold.
Clear Title
A clear title confirms there are no competing ownership claims to your property and no outstanding liens against the house—essential for a smooth, legal transfer of ownership.
Comparative Market Analysis
A comparative market analysis (CMA) provides crucial data to determine your property’s current value. This report examines recent comparable sales in your area to establish a realistic price point for your home.
Contingencies
A contingency represents a specific condition in the sales contract that must be satisfied before the agreement becomes legally binding and enforceable.
Covenant
A covenant is a formal agreement where one party provides certain guarantees to another. For example, covenants of warranty in a warranty deed protect the buyer by guaranteeing the seller’s right to transfer ownership.
Delinquency
Delinquency occurs when a homeowner defaults on their mortgage payments. At this point, the lender begins active collection efforts, which may escalate to foreclosure proceedings if the situation remains unresolved.
Disclosures
Disclosures are documents sellers provide to buyers revealing any known problems, defects, or issues with the property. Failing to disclose significant issues with your home can constitute fraud and lead to legal consequences.
Encumbrance
An encumbrance represents any claim against your property that restricts its transfer or use. Property liens, including mechanic’s liens or tax liens, are common examples of encumbrances.
Foreclosure
Foreclosure is a legal process initiated when a homeowner misses mortgage payments, typically for 90 consecutive days. The owner forfeits all rights to the property, which then becomes the possession of the lending institution.
Inclusions
Inclusions refer to personal property items included in the home sale. These can range from appliances and furniture to outdoor items like garden equipment or decorative elements.
Market Value
Market value represents a fair property valuation where all parties can act without pressure and with full knowledge of the home’s condition. It’s often calculated as the average between the highest price a buyer would willingly pay and the lowest price a seller would accept.
Mechanic’s Lien
A mechanic’s lien is a claim against your property that secures payment for contractors, laborers, and material suppliers who have contributed to work on your home but haven’t received compensation.
Negative Amortization
While amortization refers to gradually paying off your loan, negative amortization occurs when your payments don’t cover the accruing interest. This results in your loan balance increasing rather than decreasing over time.
Quitclaim Deed
A quitclaim deed transfers whatever interest one person has in a property to another person, without warranties or guarantees about the quality of the title.
Sale-Leaseback
A sale-leaseback arrangement occurs when a buyer purchases your property and then immediately leases it back to you, allowing you to remain in the home as a tenant after the sale is complete.
Short Sale
A short sale happens when you sell your property for less than what you owe on the mortgage. The lender agrees to accept this reduced amount as an alternative to foreclosure, allowing them to recover some portion of the loan.
Title
Title refers to the legal documentation proving ownership and rights to use a property. Similar to a vehicle title, it establishes your legal claim to the home and your right to transfer that ownership.
Title Defect
A title defect represents an adverse claim somewhere in the chain of ownership. These issues can significantly impact who has legal rights to the property and may complicate or prevent a clean sale.
Waiver
A waiver involves voluntarily giving up a right, claim, or privilege. This legal action removes liability for the other party in the agreement, potentially simplifying the transaction process.
When selling your house quickly in Columbia, you’ll encounter numerous real estate terms and industry jargon. Understanding these concepts is crucial to protecting your interests and making informed decisions. As a BBB-accredited company serving the South Carolina Midlands for over a decade, we recommend doing your homework before entering the fast-selling market in Columbia to ensure you don’t overlook important details!