Glossary Of 15 Important Real Estate Terms You Should Know

If you’re not familiar with the common terms used in the real estate industry, you might get a little confused. Whether you’re buying or selling a home, we have come up with a list of real estate terms to help you understand the procedure. 

The following are common real estate terms used in Nigeria that you must know before buying or selling real estate 

Buyer agent

This is a licensed agent that represents the buyer in the home-buying process and negotiates on behalf of the buyer to get the best deal. 

Listing agent

The listing agent is the home seller’s agent. They market the seller’s property and negotiate on behalf of the seller to get the best deal.

Listings 

These are properties that are put up for rent on sale in the real estate market. Listings usually include the details of the house such as location, price, number of bedrooms, square footage, etc. 

Closing

This is when the process of home buying is considered final. A real estate deal is considered closed when all the money is transferred to the seller, documents are signed and handed over to the new owner. 

Mortgage

This is a legal agreement that allows you to borrow money from a bank or building society to buy a house and pay back at a specific rate. The standard mortgage rage in Nigeria is between 17% – 25%

Appraisal

This is the valuation of the property by the bank that you want to borrow money from. The bank has to get the home appraised to determine the value of the property to be sure they are lending the correct amount of money. 

Home inspection 

This is the examination of a property that is up for sale. A qualified home inspector checks the house’s foundation, plumbing, appliances, water and sewage, etc. 

Offer letter

This is a document that explains the intentions of the potential buyer of a property. It is given to the owner of the property to inform them of the intentions of a potential buyer. 

Agency fees

Also referred to as commission, agency fee is the amount that real estate companies/agents charge their clients for their services. The standard agency fee for sales deals is 5% while rentals is 10%. 

Title

This is referred to as the legal documentation that gives rights to the property owner as a lawful owner of the property. 

Deed 

This is a legal document that transfers the title of a property from the seller to the buyer of the property. 

Acceptance 

This is the key element to a binding contract. This is when the seller of the property has agreed to an offer that is made by a buyer. 

Binding contract 

This is a legal document that shows that both the seller and buyer of a property have agreed. A contract is not binding until the seller accepts the offer. 

Down payment 

This is the initial payment made by a buyer or renter towards a property to the seller or landlord. Down payments may differ depending on the agreement between you and the lawyer. 

Incision 

This is a fee that is paid to the local indigenes of a location for a land or property to ensure a smooth building or renovation process of a property. In Nigeria, this is one of the real estate terms you must get familiar with.

Which of these real estate terms are you familiar with?

WHAT PROPERTYDOME OFFERS

We are an information rich platform that connects property buyers and renters with developers, agencies and agents for the best property deals. Do you want to buy or rent properties? Visit Propertydome.com to make informed decisions about your next real estate deal.

Have you read our article on 5 easy ways to invest in real estate?

It explains in detail five ways that you can invest in real estate. Investing in real estate is a great strategy to ensure financial stability as a result of the huge profit that you can gain. If you want to know the investment strategies, this article is a must read. Take charge and become one of the successful real estate investors today.