In real estate, the term appreciation refers to the increase in the value of a property over time. The simplest way to calculate home appreciation is to divide the change in the home’s value by the initial cost and multiply it by 100. Appreciation is the amount a home increases in value over time.
Sellers list their homes for sale as-is when they don’t want to make any repairs or renovations before closing. In other words, there are no guarantees from the seller on anything in the house — if you buy an “as-is” property and then find a problem, the responsibility falls on you.
The assessed value is a property’s determined valuation used to calculate the appropriate tax rates. Depending on where you live, a municipal or county tax assessor will determine your home’s value, and local tax officials will calculate the property taxes based on the assessed value.
An assignment is when the seller of a property signs over rights and obligations to that property to the buyer before the official closing.
Learn how to qualify for an assumable mortgage in San Diego, what types of mortgages are assumable, and search properties for sale with assumable loans.
The average of the ratio between the current list price and the original list price. For example, an average price drop ratio of 5% means active listings have dropped their price by 5% of their original list price on average.
The mean ratio of each homes sale price divided by their list price covering all homes with a sale date during a given time period. Typically excludes properties with a sale price 50% above the listing price or with a sale price 50% below the list price due to outlier status.
A backup offer is made in acknowledgment of an already existing offer and ensures a contract with the seller if the first offer happens to fall through. It is a legally binding contract that, if accepted by the seller, makes you next in line to purchase the home.
Instead of a traditional fixed-rate mortgage in which the owner pays on the loan in installments, a balloon mortgage is paid in one lump sum which is called the balloon payment. It’s usually associated with investment or construction projects that are issued for the short term and don’t require collateral.
A bi-weekly mortgage payment means a homeowner pays their monthly mortgage payment in two monthly installments instead of one. With a bi-weekly mortgage, you’ll make 26 payments per year instead of 12.