Like any profession, the real estate industry has a language of its own. Many of these terms you will already be aware of, but there may be some you have not come across. Below are the terms you may need to be aware of during your buying or selling process.
A marketing option where you list your property without a price, supported by very intensive marketing leading buyers to the auction day, where they must bid against each other to successfully purchase your property in an unconditional situation.
Person holding an Auctioneer's license and able to conduct and call auctions.
Current Market Analysis (CMA):
A written report of the estimated value of a property by showing comparable recently sold properties within the same, and/or surrounding area/s.
A written contract which has been signed by the seller and the purchaser but has one or more conditions which need to be met, usually within a specified time period. For example, 'subject to the solicitor's approval of the title.'
The fees for selling the property, payable by the seller to the real estate company.
Items that have been specified on the contract as not remaining.
A freehold property has a clear title of ownership and is not subject to a lease.
Items you decide to sell with the property, such as pool equipment, fridge, freestanding glasshouse, shed or playhouse, dishwasher, that are noted in the contract they are included in the sale. Standard chattels usually include blinds, curtains, drapes, fixed floor coverings, light fittings and stove.
Sometimes land is subject to a lease. The owner of the land leases to the tenant for a fixed rental sum for a fixed period, e.g. 21, 99 or 999 years.
A contract between the owner and the real estate company marketing the property. It details the length of the agency, commission rate and any additional costs. The type of marketing method to be used is assigned and a summary of information about the property is detailed on the Listing Authority.
Money paid by a seller that goes directly to increase advertising spread.
A promotional package put together to give a property exposure to the market. It may include advertisements to be used, a calendar of dates for advertisements, open homes, buyer contact and service.
No Price Marketing:
Usually called Auction, Tender, or Price By Negotiation. The price is not revealed to buyers during the marketing promotion.
Offer/Sale and Purchase Agreement:
A written contract that sets out the terms and conditions under which a buyer agrees to buy a home. If the offer is accepted by the seller, it becomes a legally binding agreement.
An offer made by the seller of a home after rejecting an offer by a potential buyer. The counteroffer usually changes something from the original offer, such as the price or closing date.
Any appointed real estate agent/company can quote or sell your property. General low level of marketing and feedback. No one person is totally responsible for managing your sale.
Possession or Settlement Date:
The date when the seller is paid the full purchase price and ownership (possession) passes to the purchaser.
The reserve price is the minimum price the seller will accept for their property at the auction. (Kept confidential between the seller, listing consultant and auctioneer).
An appointment time is scheduled with the seller for the listing agency’s team of consultants to visit the seller’s property and acquaint themselves with the property.
When the conditions written into the agreement to buy a property have been met, the offer becomes unconditional. The property is now sold and both the seller and purchaser must settle.
Seller of the property.