From contingencies to Addendum to dual agency, there are so many real estate terms that it's easy to get lost. At GTA Selling Real Estate, we believe in making your house buying/selling process smooth and successful. To that end, we've created a list of the top 7 terms that'll allow you to confidently navigate the real-estate world and achieve your housing goals.
7 Real Estate Terms Everyone Should Know
1. Gross Scheduled Income
Sometimes referred to as potential gross income, Gross Scheduled Income (GSI) is an estimate of the highest possible annual rental income a rental property would generate if 100% of rentable space was rented.
2. Comparative Market Analysis (CMA), or Real Estate Market Analysis
CMA is a process where a real estate agent or appraiser compares the subject property to active listings, pending sales, and recently sold properties in the area so as to derive its real value. CMA reports help sellers to understand the current housing market, enabling them to set realistic prices for their properties.
CMA reports also help buyers respond with counteroffers that are still strong enough to keep the sellers interested.
An addendum, also referred to as “amendment,” is a form attached to and made a part of the original purchase and sale agreement/contract. Typically, it is either a more detailed and more comprehensible explanation of specific provisions or sections in the agreement or a proposed change to the agreement.
Addendums are very powerful and can completely change the terms that were in the original purchase and sale contract. An addendum also must be signed by the buyer, seller, and witnesses for it to be legally binding.
This is a provision or section of the purchase agreement that makes it clear that certain stipulations or actions must be met for the transaction to keep moving forward and eventually be finalized. If the contingencies in the contract are not met, the contract can be declared null and void.
Some of the most common real estate contingencies include appraisal contingency, closing date, satisfactory walk-through, and sale of the old home contingency.
5. Listing Agent
This is a term used to refer to the realtor who represents the party that wants to sell their property. A listing agent helps the seller invest in the right repairs, set the asking price, stage the house, and market the house.
6. Buyer Agent
As the name implies, this is an estate agent who represents the buyer in the house-buying process. A buyer agent helps look for property that suits a buyer's needs, negotiate the most favourable buying terms, and ensure the buyer buys a property at the best possible price.
7. Dual Agent
A dual relator is a realtor who represents both the selling party and the party that's buying the property -- it's as simple as it sounds.
Got all that? Bookmark this glossary list and come back to it whenever you need to. If you need help with buying or selling a home in Toronto, experts at GTA SELLING Real Estate are here to help. Contact GTA SELLING Real Estate today for more details.