Selling your house can be daunting, especially if you’re unfamiliar with commonly used real estate lingo. On Kauai, there are certain terms that you are likely to hear when you’re selling your house. It’s important to be familiar with these terms so that you can make informed decisions throughout the selling process. In this blog, we’ll discuss ten real estate terms you will likely hear when selling your house on Kauai so you can be an informed and educated home seller.
1. Appraisal
An appraisal is an assessment of the value of your house. It’s typically conducted by a professional appraiser who will evaluate your house and compare it to similar houses in the area. The appraisal will determine the fair market value of your house, which is an important factor in determining the listing price. It will be required by the lender if you are using traditional financing methods in your purchase.
2. Listing Price
The listing price is the price at which your house is listed for sale. It’s important to set a realistic listing price based on the appraisal and the current market conditions on Kauai. A listing price that is too high can deter potential buyers, while a listing price that is too low can result in a lower sale price. Working with a top Kauai agent, such as Jeff Nemeth Real Estate, will ensure your house is properly priced before hitting the market.
3. Commission
The commission is the fee that the real estate agent will receive for selling your house. It’s typically a percentage of the sale price, and it’s often negotiable. It’s important to discuss the commission with your real estate agent before signing any contracts. Make sure you know exactly what your agent will be doing for you in exchange for that commission. All agents are different. Some are well worth the investment, while others make a minimal effort. Choose wisely.
4. Closing Costs
Closing costs are the fees associated with the sale of your house. They include things like title insurance, attorney fees, and transfer taxes. These costs can vary depending on the sale price and the location of your house on Kauai. It’s important to be aware of these costs so that you can factor them into your budget. Nothing is worse than being surprised by extra costs when you sit at the closing table to sell your house.
5. Contingencies of the Sale
Contingencies are conditions that must be met before the sale of your house can be finalized. They can include things like a home inspection, financing, and appraisal contingencies. It’s important to understand the contingencies in the contract and to ensure that they are met before the sale is finalized.
6. Home Inspection
A home inspection is an assessment of the condition of your house. It’s typically conducted by a professional inspector who will evaluate your house’s major systems and components. The inspection report will identify any issues that need to be addressed before the sale is finalized. Many sellers opt to have an inspection done prior to listing to ensure they aren’t surprised by any hidden problems with the home after an offer has been made.
7. Multiple Listing Service ( The MLS)
The MLS is a database of properties for sale on Kauai. It’s used by real estate agents to share information about properties and to find potential buyers. Listing your house on the MLS can increase exposure and help you find a buyer more quickly. Working with a top agent at Jeff Nemeth Real Estate will ensure your property is properly listed and that is stands out from others on the market.
8. Pre-Approval
A pre-approval is a letter from a lender that indicates how much money a buyer is eligible to borrow for a mortgage. It’s important that your potential buyers receive a pre-approval letter before making an offer for your house so that you don’t have to worry about the sale falling through due to a lack of financing.
9. Title Search
A title search is an examination of public records to verify the ownership and legal status of your house. It’s typically conducted by a title company or attorney. The title search will identify any liens or encumbrances on the property that need to be cleared before the sale is finalized.
10. Escrow
Escrow is a neutral third party that holds funds and documents during the sale of your house. The escrow company will ensure that all conditions of the sale are met before releasing the funds and documents to the appropriate parties.
In conclusion, selling your house on Kauai can be a complex process, but understanding these ten real estate terms can help you navigate the process more effectively. Working with a knowledgeable and experienced real estate agent can also make a significant difference in the success of your sale. Reach out to Jeff Nemeth Real Estate today to learn more about what we can do for you! 808-634-4518