Today I want to explain a few different real estate terms in detail. Oftentimes, we use a lot of shorthand or abbreviated words without realizing it, and I wanted to make sure you’re clear on what some of these terms mean when you hear them come up in conversation.
1. Comps. This is short for “comparables.” It’s just a word that we use to refer to homes that are comparable to yours when we’re getting ready to buy or sell a home. They help us know whether or not a home’s value is in the right range.
2. PMI. This stands for private mortgage insurance. It’s required for homebuyers that are putting down less than 20% on their home purchase. This insurance insures the lender, but it doesn’t have to last forever. Once you have 20% equity in your home, you can get a re-appraisal and get it removed.
3. Closing costs. They refer to all the additional fees it takes to finalize a home closing. They include things like escrow fees, lender fees, and attorney fees. It doesn’t include inspection costs.
Those are just a few terms that I wanted to make sure you were aware of. If you have any questions about the Memphis real estate market or anything else, don’t hesitate to give me a call or send me an email today. I look forward to hearing from you soon.