When looking to buy or sell Evanston real estate, confusing terminology can leave you feeling somewhat uneasy.
From a multitude of numbers to marketing jargon, property listings can provide you with an overwhelming amount of information — and it’s hard to know what’s important.
So, brush up on the terms below and don’t get fooled this April.
Sale-to-List Ratio
This is an important number to pay attention to when choosing a real estate professional to sell your home.
The percentage is calculated by what a home was initially listed for, divided by the actual sale price.
The closer an agent’s percentage is to 100, the better.
If it’s low, that could be an indication that they routinely list homes too high, or you may be in a slow market which would favor the home buyer.
On the other hand, if it’s high, it could show that your agent markets their listings well and your market might favor home sellers.
Median Days on Market
The median days on market is the midpoint of how many days it took for homes in that area to sell.
If it’s 30 days, then half of the homes sold quicker and half took longer than 30 days.
If you compare the real estate you’re considering to its area’s median days on market and you find that it’s been on longer, the sellers might be willing to take a lower offer.
Distressed Property
Properties are listed as distressed when the owners have defaulted on their mortgage loans or are about to.
As a buyer, you might be able to get a good deal on a short sale or a foreclosure, as banks many times list them below market value to try and recoup some of their loss and clear the property from their books.
An Active Versus Pending Status
If you find your dream home and then notice that it has a pending status, brace yourself for disappointment.
An active status on a home means the owners are accepting offers, while a pending status indicates that they’ve already accepted an offer.
If you know it’s the one for you, you can still place a bid in case the first offer falls through.
While there are many new concepts and terms you will learn when purchasing your new home, the benefits of home ownership far outweigh any fear that you may have.
If you’re looking to purchase a new home soon, please contact a licensed real estate professional who can cut through the jargon and find the home of your dreams.
