Real Estate Terms Explained www.maxrealestateexposure.com /real-estate-terms/
Real Estate Terms You Should Know Whether you are selling or buying if you are planning on making a real estate transaction, you are going to run into a few terms that will cause you to think. To make things a little easier, here are a list of common real estate terms – and not so common terms – that you can reference as you move forward with your purchase or sale. These are the real estate terms all buyers and sellers should be cognizant of. Keep in mind some of these legal terms are obscure enough that your Realtor might not even know how to handle them correctly. In fact, the first two real estate terms on the list, what’s known as dual agency and an escalation clause are often misunderstood. These real estate terms sellers and buyers should be familiar with. Unfortunately, many are not, along with quite a few other terms. Grab a cup of coffee and become more educated on some important aspects of real estate.
Escalation Clause Explained An escalation clause is legal term a buyer can insert into an offer that states that the buyer will outbid other offers on a home up to a certain price point. For example, a buyer may offer $500,000 initially, but state in an escalation clause that he or she will outbid other offers by $5,000, up to a ceiling of $525,000. That means that the buyer will most likely get the home as long as no one makes an offer higher than the ceiling price. Unless of course, the buyer has additional unacceptable terms. Escalation clauses are more common in seller’s markets. Escalators are designed to help a buyer win a bidding frenzy which becomes quite common in crazy real estate markets. While an escalation clause can be useful for the buyer, some sellers may find the addition of such a clause 1/9