When you start looking at the Colorado Springs real estate market, you’ll quickly find yourself knee deep in a new language. Contingencies, titles, and closing costs are a few of the terms you’ll need to know so you can understand what’s going on. We’ve pulled together some of those terms so you don’t feel quite so lost in the process.
1- Listings for Colorado Springs Real Estate
Homes for sale are often called listings because they’re listed on a website. Realtors have access to the MLS (multiple listing service) that has the pertinent information about homes on the market (including the number of rooms, square footage, pricing and more).
2- Offers And Contracts
When you find a home you want to buy, you’ll make an offer and write up a contract. The contract will include your conditions for buying the home at the offered price. The seller may give a counter offer suggesting different terms and prices.
The home inspection happens after a buyer has made an offer on the home. The potential buyer pays for the inspection and the inspector looks at electrical, plumbing, foundation, walls, and heating. Usually, the contract will allow a buyer to back out of a deal or negotiate the price if they don’t like the results of the inspection.
When a buyer applies for a mortgage, the lender will want to know the value of the home before approving. An appraiser estimates the value of the home. If the offer exceeds the home’s appraised value, the lender will not want to give a loan. Your realtor can do a comparative market analysis to let you know the average price of similar homes.
These are conditions that must be met before the home can close. When you put an offer on a home, you have the opportunity to say what the deal breakers are. These can be based on the appraisal, inspection, and financing.
6- Closing Costs
There’s always additional costs when buying a home. These are so common that they’ve earned the name closing costs. They can include excise tax, loan processing costs and more. A good realtor should be able to give you an idea of the usual closing costs for Colorado Springs Real Estate.
7- Title Insurance
This is one of the closing costs that deserves its own category. A title insurer goes through public records to make sure the seller truly owns the home and there are no liens on the home (unpaid work, back taxes). This helps you avoid the awkwardness of buying a home that wasn’t truly for sale.
We’d love to talk with you about Colorado Springs real estate. Get in touch if you’d like to talk with one of our team members.