When it comes to real estate, there’s a lot to think about to ensure that you arrive at the best decision in regards to buying property. Wondering where to buy a vacation home? Mexico is a popular choice for many investors that buy a vacation home there due to the wonderful climate, natural beauty, and excellent cuisine. Plus, there are tons of outdoor activities to enjoy all year round, great restaurants, and world class shopping, too. Whether you are buying a vacation home or full time home in Mexico, there are some real estate terms you should become familiar with. Keep reading more to learn real estate terms that you should know whether you are in the market to buy a vacation home or full-time dream home in paradise.
Real Estate Terms: What You Should Know
As-is
When buying a home, some homes can be sold with the option to request repairs, while others are sold “as-is”. The phrase “as is” simply means that the seller will not make any repairs or offer any credit. Depending on the extent of repairs needed, the potential buyer can either take the property the way it is or cancel after they have a home inspection completed.
Appraisal
An appraisal is a valuation of the property based on the estimate of an authorized person. Appraisals are often required in order to determine the property value for a real estate transaction as well as for insurance and taxation purposes. The value of the home is calculated by reviewing similar properties that are currently for sale as well as properties that have been sold in the local housing market. In addition to the estimated value, appraisals include important features of the home such as square footage, number of bedrooms, bathrooms and property age.
Buyer’s Agent/Listing Agent
The buyer’s agent represents the buyer who is purchasing property. On the other hand, the listing agent represents the seller in a transaction. A buyer’s agent is also known as a purchasing agent and they are responsible for helping find suitable listings for their clients that match their price range and home preferences.
Closing
Closing is also called completion or settlement, and is the final step in a real estate transaction. It is the last step of the process of purchasing and financing a property. On the closing day, the official ownership of the property is transferred from the seller to the buyer.
Closing Costs
Closing costs are the expenses outside of the property’s price that buyers and sellers usually incur to finalize a real estate transaction. Typically, closing costs may include loan origination fees, discount points, appraisal fees, title searches, title insurance, surveys, taxes, deed recording fees, and credit report charges.
Days on Market (DOM)
Also referred to as DOM, Days on Market measures the number of days from the date a listing is first listed to the last pending status before the property is sold. Note that the difference between Days on Market and Cumulative Days on Market Days on Market can vary between various MLS systems.
Due Diligence
In real estate, due diligence is the period of time when the buyer and/or investor should do their research in order to assess the property in question that they want to buy. At that time, they should receive full disclosure about all the facts and conditions of the real estate in question before they proceed in completing a transaction with the seller.
Escrow Holder
During a real estate transaction, an escrow agent is a neutral third-party entity. They are the ones who hold the funds and assets related to the transaction until both parties have satisfied obligations that are stipulated in the purchase agreement. Once obligations have been met, the sale can be closed on and funds can be released from the buyer to the seller.
Homeowner’s association (HOA)
For real estate that is part of a condominium or gated community, a homeowner’s association (HOA) is an organization that helps manage properties. in a subdivision, planned community, or condominium building, the HOA makes and enforces rules for applicable properties and residents. For individuals who purchase property that has a HOA, they automatically become members and are required to pay regular dues, known as HOA fees. There may also be special assessments due as well on an as needed basis determined by the HOA Board during regular meetings.
We hope you enjoyed this article about some of the most common real estate terms. If you’re looking to buy a second home in a tropical location, look into buying real estate in Mexico. Beachfront homes are still affordable when compared with similar properties in the States. Plus, many homes are part of gated communities or condominiums that also have 24-7 security, resort quality amenities, and superior services, too. That way, every moment spent at your vacation home will feel like a dream come true. Life is to be lived! Make sure you have a home environment that feels like an oasis for everyone that you love.
About Lemuria Real Estate
Ideally situated on Puerto Vallarta’s exclusive South Shore, Lemuria Residences is a new luxury condominium complex that belongs to a Master planned community designed by the prestigious Gensler Global Architecture firm. The ecologically planned themed property includes more than 1700 acres of preserved Sierra Madre jungle with stunning views of the mountains and Banderas Bay. The outstanding onsite amenities include multiple pools, BBQ areas, restaurants, a 2000 square meter spa, Sports Club, gym, tennis courts, pickleball courts, organic herb garden, and yoga spaces. There are also freshwater rivers and private hiking trails located nearby so it’s the ideal place to invest if you want to be close to nature. Contact Lemuria Residences today to learn more about our luxury beachfront condominiums for sale in Puerto Vallarta.