Real Estate Terms for Beginners

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Real Estate Terms for Beginners

Real Estate Terms for Beginners

Getting started in the real estate world can be different if you do not have the knowledge of basic concepts and terms.

Even if you are already familiar with most of the concepts, it doesn’t hurt to review and understand them correctly.

To help you, we have prepared a glossary of real estate terms that you should know:

  1. Real Estate Advisor

A real estate advisor is a natural person who provides mediation, advice and management services to the buyer and seller of a property.

There are independent real estate advisers and those that belong to a real estate brand, although their functions are the same.

Its tasks are many, but the most important thing is to attend to any problem that may arise and resolve any questions that a client raises, although it also has other functions, such as:

  • Property manager functions
  • Repairs
  • Inspect the properties
  • Making offers
  1. Return on Investment

The return on investment or benefits of investment, its acronym ROI is the English Return On Investment, it is a metric used to know how much the investor or the company earned through their investments.

Knowing the ROI of an investment allows us to know its profitability.

This lets you know if your investment is profitable, how much they will offer you in the future and how attractive it is compared to other similar investments.

  1. Escrow

It is a commercial operation through which a person, physical or moral, called the settlor, allocates certain assets to a third party.

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It serves both to channel large-scale investments and to protect interests with family preponderance over economic matters.

It is an extremely useful instrument as a reliable business vehicle of the most diverse nature, with considerable advantages over some legal tools that do not have their versatility.

  1. Appraisal

It is the mechanism by which you will know the commercial value of the property that you are interested in acquiring or selling.

The opinion in which the value of a goods indicated, is based on its physical characteristics, its location, its use and a market research and analysis.

The valuation or appraisal report must be formulated in writing in a clear and objective manner, presenting the reasoning and sufficient information with which the evaluator obtains the conclusive value of the asset under study.

  1. Contract of Sale

It is an agreement entered into between the parties participating in a real estate transaction.

It is an exchange based on an amount of money, where one of the parties agrees to grant the specified amount to the counterpart.

The sale is understood to have been constituted at the time the delivery, and price agreement is reached.

These are some and the most important real estate terms that you must be familiar with to become a real estate professional.

Being aware of the most used terms in daily communication will help you integrate into the real estate world more easily.

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