Planning to sell your house quickly in Columbia? As Columbia Cash Home Buyers, we believe knowledge is power. Below, we’ve compiled essential real estate terminology you should understand when selling your home in Columbia. Our family-owned business has over 10 years of experience helping homeowners navigate these complex terms. If you have any questions about the selling process, please reach out to us – we’re committed to transparency and are always happy to provide clarity. 803-592-2353
Appraised Price
An appraised value is a professional evaluation of your property’s worth by a certified appraiser. This assessment occurs during mortgage processing or can be requested privately by buyers or sellers to determine fair market value. An appraisal may also be necessary for tax purposes or during divorce proceedings.
Assessed Value
The assessed value helps calculate your property tax obligations. Your local property appraiser considers location details, home inspection information, and recent sales in your neighborhood to determine this figure.
Carrying Costs
Carrying costs are your ongoing monthly expenses as a homeowner. These include property tax payments, insurance premiums, utility bills, and maintenance costs – all expenses that continue while you’re trying to sell your home.
Clear Title
A clear title confirms there are no competing ownership claims to your property and no liens against the house. This is essential for a smooth, hassle-free sale.
Comparative Market Analysis
A comparative market analysis, or CMA, provides crucial data to determine your property’s current value. It examines recent comparable sales in your area to establish a fair and competitive asking price.
Contingencies
A contingency is a specific condition in your sales contract that must be satisfied before the agreement becomes legally binding. Common contingencies include home inspections and financing approval.
Covenant
A covenant is a formal agreement where one party provides specific assurances to another. For example, covenants of warranty in a warranty deed protect the buyer against title defects.
Delinquency
Delinquency occurs when a homeowner defaults on their mortgage payments. At this point, the lender begins the collections process and may eventually initiate foreclosure proceedings.
Disclosures
A disclosure is a document where you as the seller inform the buyer about any known problems, defects, or issues with your property. Failing to disclose significant problems can be considered fraud and lead to legal complications.
Encumbrance
An encumbrance is any claim against your property that restricts its transfer or use. Property liens, such as those from unpaid contractors or tax authorities, are common examples of encumbrances.
Foreclosure
Foreclosure happens when a homeowner fails to make mortgage payments, typically for 90 days or more. The owner surrenders all rights to the property, and the home becomes the possession of the lender or bank.
Inclusions
Inclusions refer to personal property items that come with the home sale. These might include appliances, furniture, outdoor equipment, or other items specifically listed in the purchase agreement.
Market Value
Market value represents your property’s worth when all parties are under no pressure to complete the transaction and have full knowledge of the property’s condition. It’s often calculated as the midpoint between the highest price a buyer would 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 worked on your home but haven’t been paid.
Negative Amortization
While amortization refers to paying down your loan, negative amortization occurs when your monthly payments don’t cover the interest charges. As a result, your loan balance grows rather than shrinks, putting you deeper in debt over time.
Quitclaim Deed
A quitclaim deed transfers whatever interest one person has in a property to another person, without any warranties about the quality of that interest or title.
Sale-Leaseback
A sale-leaseback arrangement occurs when a buyer purchases your property and then leases it back to you as the former owner, allowing you to continue living in the home as a tenant.
Short Sale
A short sale happens when you sell your property for less than what you owe on your mortgage. This allows the lender to recover some of the loan amount as an alternative to the more costly foreclosure process.
Title
The title identifies who has legal ownership and usage rights to a property. Similar to a car title, it’s the document that establishes your legal claim to your home.
Title Defect
A title defect occurs when there’s a conflicting claim somewhere in the property’s ownership history. These issues can significantly impact who holds legal rights to the property and may complicate or delay a sale.
Waiver
A waiver means voluntarily giving up a right, claim, or privilege. When you sign a waiver, you’re releasing the other party from liability for specific aspects of the agreement.
When selling your house quickly in Columbia, you’ll encounter plenty of real estate terminology. As a family-owned business with over 10 years of experience in the South Carolina Midlands, we at Columbia Cash Home Buyers believe it’s crucial to understand these terms and how they affect your transaction. Doing your homework before selling your house in Columbia can help you avoid unexpected surprises and ensure a smooth, stress-free sale!