Real Estate Terminologies: Things Need To Know Before Hunting For A New Home
When you are looking for a new apartment there are often some technical jargons you face a hard time understanding. Like every other industry, real estate also has its terminologies.
From amortization to the built-up area, you often get confused when there are ample of such technical terms you know nothing about. And that fills you with the dilemma and thoughts of ‘whether or not I would be able to find the perfect apartment near me?”
But all of those thoughts end here. Here is a list of the most important real estate terminologies explained most humanely.
What are the listings?
The first thing you come across when you are looking for a house is listings. It is also a term often used by real estate agents. So basically, when agents say listing, they are just referring to 2bhk or 3bhk in Khar west they just showed you.
Carpet area vs built up area
The carpet area of the apartment includes the usable space of the house and does not include the inner walls’ area. It also includes a terrace and balcony space in the house.
Further, there is an extension of the built-up area, which is a super built-up area. This area that you often find in the listing even includes lobby, stair, and lifts which are proportionately divided among all the flats. However, before buying check with your developer what concept of the built-up area they are using.
What is stamp duty?
To generate revenue, the state government charges stamp duty on the sale/purchase of a property. Stamp duty differs from locality to locality. You might have to pay different stamp duty for a 4bhk in Khar market than in Bandra. While registering for the property you will have to pay the stamp duty to the state government along with the registration fee.
The stamp duty highly depends on the property value. Therefore, make sure to negotiate well.
Market value is the price at which the apartment will be sold to you. Forces in the economy such as demand and supply and other factors like the type of property and area determine the market value of the property. Market value is ever-changing since it is a dynamic economy. Therefore, a 2bhk apartment may cost you differently tomorrow than it is costing you today.
Adjustable-rate mortgages vs fixed-rate mortgage
Home loans include both fixed mortgage rates and adjustable mortgage rates. In a fixed mortgage rate you will be charged the same rate of interest throughout the loan period however in an adjustable mortgage there will be a varying rate of interest.
Make sure you do the due diligence before committing to any house or mortgage rate. Mortgage on a 2bhk flat in Khar west may differ from the one in another area. Make sure to look around and get the best possible mortgage.
Flat sale agreement
Last but not the least, flat sale agreement includes all the terms and conditions between buyer and seller. It is the only document that legally binds both of the parties. Sale agreement is the road map of how the transaction between you and the seller will take place.
Buying a new apartment is a huge undertaking, therefore, you must have a proper understanding of all the 'whats' and 'ifs' to make sure that you and your agent are on the same page. Above are the basics of real estate to make the home-buying a seamless process for you.