Buying a home, especially for the first time can be daunting. As there are many decision factors involved which you make along the way could save you or cost you. One such factor – real estate terms, not knowing them can cost a fortune.
Here is a list of real estate terms that one should know before buying a property.
An Appraisal is an official valuation of a property carried out by a certified Real Estate Appraiser or a valuer.
Appreciation of a property is an increase in the value of a property due to changes in market conditions over a period of time.
Built-up area is the carpet area plus the thickness of outer walls and the balcony.
Basic Sales Price (BSP)
BSP refers to the price of an apartment excluding the charges for amenities. For instance, car parking, clubhouse etc.
Carpet area is the area enclosed within the walls. Carpet area does not include the thickness of inner walls.
A credit score is a numerical expression derived from the analysis of a person’s credit files. This basically represents the creditworthiness of an individual. It is usually based on a person’s past credit history.
A deed is a legal document that is signed and delivered, especially one regarding the ownership of property or legal rights.
Depreciation refers to a decline in the value of a property due to changes in the market condition.
The down payment is a payment used in the context of the purchase of expensive items such as a car and a house, whereby the payment is the initial upfront portion of the total amount due and it is usually given in cash at the time of finalizing the transaction.
Equity is the value of an asset owned by an individual.
The floor plan is a pictorial representation that shows how an apartment would look after completion.
A lease is a contract by which one party conveys land or property to another for a specified time, usually in return for a periodic payment.
A mortgage is a loan taken from a bank to finance a property.