When looking to buy or sell Fort Lauderdale real estate, confusing jargon can leave you feeling like you need an attorney or that you should run for the hills. From confusing numbers to ambiguous marketing-speak, property listings can provide you with an overwhelming amount of information. Sometimes it can be difficult to determine what information is important, so we put together a list of popular terms and explained why they might be important to you.
Important Fort Lauderdale Real Estate Terms
Sale-to-List Ratio – This is an important number to pay attention to when choosing a Fort Lauderdale real estate professional to sell your home. The percentage is calculated by the price a home was initially listed for, divided by the actual sale price. The closer an agent’s percentage is to 100, the better. If the percentage is low, that could be an indication that the agent routinely prices homes too high, or you may be in a slow market which would favor the home buyer. On the other hand, if the percentage is high, it could show that your agent does a good job of pricing a home and your market might favor home sellers.
Median Days on Market – The median days on market is the midpoint of how many days it took for homes in a particular area to sell. If the midpoint is 30 days, then half of the homes sold quicker and half took longer than 30 days. If you compare the property you’re considering to its area’s median days on market and you find that it’s been on longer, the sellers might be willing to take a lower offer.
Distressed Property – Properties are listed as distressed when the owners have defaulted on their mortgage loans or are about to default. As a buyer, you might be able to get a good deal on a short sale or a foreclosure, as banks many times list them below market value to try and recoup some of their loss and clear the property from their books.
Active Versus Pending Status – If you find your dream home and notice it has a pending status, brace yourself for disappointment. An active status on a home means the owners are accepting offers, while a pending status indicates they’ve already accepted an offer. If you are certain the property you found is the one for you, you can still make a back-up offer in case the first offer falls through.
While there are many new concepts and terms you will learn when buying or selling a home in today’s market, a knowledgeable real estate agent will be able to guide you through the process. If you need a great real estate agent, contact us! We’ll help you cut through the jargon and achieve your Fort Lauderdale real estate goals.