Most industries have their own expressions and terms, and real estate is no exception.
If you’ll be buying or selling a property in the near future, here is a quick guide to some of the more common real estate terms you might encounter, and what they mean.
Agent: A real estate agent works on behalf of the seller to achieve the best price for a property.
Appraisal: An estimation of the value of your property that can be carried out by a real estate agent.
Asking price: This is the price that the owner and real estate agent have determined is a fair price for a property. The owner may be willing to negotiate, so this may not be the selling price.
Bridging loan: A short-term loan used to cover a financial gap, usually if you’ve purchased another property before selling your own.
Building inspection: If a buyer is interested in a property, they’ll often organise and pay for a thorough inspection by a licensed builder that evaluates its structural and mechanical condition, and any potential problems.
Capital gains: A capital gain is the profit on the sale of a capital asset, such as a house.
Conveyancer: Transferring a property from one person to another is a legal transaction. A conveyancer does all the legal work associated with the purchase or sale of a property.
Fittings: Items that can be removed from a property undamaged and aren’t included in the sale.
Fixtures: Items like built-in cupboards, ovens, stoves, dishwashers and the like which are fixed to a property and are included in the sale.
Listing: A listing is basically a property that is for sale.
Off the plan: If a property is sold before being built it is sold ‘off the plan’ as only the plans are available for the buyer to see.
Principal: The amount a buyer borrows to purchase a property.
Reserve price: The minimum price the seller of a property will accept at auction.
Stamp duty: Stamp duty is a tax paid by the buyer on the transfer of a property. Find out more about stamp duty here.
Strata title: A property ownership title usually associated with units or townhouses, this is when individuals own a portion of the title and share a common property. Strata fees are usually paid by each of the owners for the upkeep and maintenance of the common property (lawn mowing, gardening, gutter cleaning, etc).
Torrens title: The most common property title in South Australia, this is when there is a single owner for a block of land with or without a home on it.
Vendor: The seller of a property.