If you are hoping to sell your house fast in Chicago, there are some real estate terms you should become familiar with. Below, we’ve compiled some of the lesser-known terms you might hear when selling your house in Chicago. Please feel free to reach out to us if there is anything else you would like to know about the selling process. We are happy to answer all of your questions. (773) 839-5575
An appraised value is an evaluation of a property’s value by a professional appraiser. This can be done during the mortgage origination process or by the buyer or seller privately to help determine the value of the property. An appraisal can also be used for tax purposes or after a divorce.
The assessed value of a property helps determine how much a homeowner will need to pay in property taxes. The property appraiser will take into account location information, inspection information for the home, and recent home sales in the area.
The carrying costs are the costs you facing each month to own the home. This includes things like your tax payments, insurance premiums, utility bills, and maintenance costs.
A clear title means that there aren’t any other ownership claims to the property, nor are there any liens against the house.
Comparative Market Analysis
A comparative market analysis, or CMA, provides information to help determine the value of the property. It takes into account recent sales to help you figure out what your house is currently worth.
A contingency is a stipulation in the contract that needs to be met before the contract is legal and binding.
A covenant formal agreement in which one party gives the other certain assurances. An example would be covenants of warranty in a warranty deed.
A delinquency occurs when a homeowner defaults on their loan. This is when a lender will actively begin the collections process, even initiating foreclosure.
A disclosure is a document that the seller provides the buyer, letting them know about any problems, defects, or known issues with the property. Failing to disclose a problem with your home can be considered fraud.
An encumbrance is a claim against the property that restricts its transfer or use. A property lien is considered an encumbrance.
A foreclosure occurs when a homeowner fails to make their mortgage payment, typically for 90 days. The owner waives all rights to the property and the home becomes the possession of the bank.
Inclusions are personal property that is included in the home sale. This can be things like appliances, furniture, or outdoor items.
Market value is a valuation of the property in which the parties are free of pressure to complete the transaction and all details of the house are known. It can be formulated by finding the average between the highest price a buyer would pay and the lowest price a seller would accept.
A mechanic’s lien is a lien against the property which will secure the payment of contractors, laborers, and those who provide materials.
While amortization refers to paying off your loan, negative amortization happens when the payments you are making aren’t enough to cover the interest and the amount you owe becomes greater as opposed to less.
A quitclaim deed transfers the interest in real property from one person to another.
A sale-leaseback occurs when a buyer purchases a property and then leases it back to the occupant.
A short sale occurs when an owner sells their property for less than what is owed, allowing the lender to recoup some of the cost of the loan as an alternative to foreclosure.
The title refers to who has legal ownership and who can legally use the property. Just like a car, it is how you claim ownership of the property.
A title defect is when there is an adverse claim, somewhere in the chain of ownership. It can have an impact on who has legal rights to the property.
Voluntarily giving up a right, claim or privilege. It removes liability for the other party in the agreement.
When trying to sell your house fast in Chicago, you will likely hear a lot of real estate jargon thrown your way. It’s important to know what is being said and how the terms used will impact you. Do your homework before selling your house fast in Chicago so you don’t miss something you should have been aware of!