An appraised value is an evaluation of a property’s value by a professional appraiser. Most often this will be done by the buyer’s lender during the mortgage origination process. It can also be performed 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. In Massachusetts and New Hampshire this is the work of the municipality in which you live. You can check the city or town web site to get this information. Click here to see an example of the Tax Assessor information for Lowell, MA.
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.This is different than an appraisal in a few ways and is normally done a professional familiar with the market in your area.
This is a tremendously important term to know and understand! Many times a potential buyer will add one or more contingencies to the Offer to Purchase they present to you. A typical example is a financing contingency that says the buyer will only be obligated to buy your Lowell house IF and ONLY IF they get approved by a bank for a loan. So after waiting 4-6 weeks for a bank to approve your buyer for a loan, the buyer can simply walk away from your contract if they prove not to be creditworthy. 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. We have a more in-depth article on Disclosures here.
An encumbrance is a claim against the property that restricts its transfer or use. A property lien is considered an encumbrance.
A foreclosure occurs after a homeowner fails to make one or more of their mortgage payments. The foreclosure laws differ in Massachusetts from other states. If you or someone you know is a homeowner in Lowell that is experiencing financial problems, let them know there are ways to solve those problems.
The key is to take action as soon as the lender notifies you of a pending foreclosure. If a lender follows through on all the steps in a foreclosure, they typically take over the house and resell it to retrieve the money they are owed. The owner waives all rights to the property and the home becomes the possession of the bank. Here is a brief video explaining the steps to avoid foreclosure on your Lowell house.
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. This is normally a fairly involved transaction and the lender must be in full agreement with the process before it can proceed successfully.
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 Lowell MA, 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 you begin the process of selling your home in Lowell so you don’t miss something you should have been aware of!