Finding a comfortable and affordable apartment is not just about searching the real estate websites and dedicated social media groups to snatch the best deal for you. It’s also about understanding important real estate terms before contacting any real estate agent.
Consider the following example: If you are searching on Google for apartments for rent in Bahrain or villas for rent in Bahrain, or even furnished apartments for rent in Bahrain, don’t contact the company or the post’s author unless you are familiar with some basic real estate terms. Because if you don’t do this, you may be taken advantage of by a con artist.
That’s why we compiled some real estate terms you should know to be aware of what you are about to indulge in.
Most Important Real Estate Terms You Need to Know Right Now
You are now considered an expert, mainly interested in becoming a real estate marketer or making investments in this exciting business. If you decide to rent or purchase a property in Bahrain without having a thorough grasp of the real estate words listed below, the process may be very time-consuming since you will not know what you are looking for. On the contrary, being familiar with most of these definitions will improve your expertise, and you will be able to deal with any customer.
You will be a successful salesperson very quickly since you understand all of the terms and answer all customers’ inquiries.
1- Comprehensive Assessment
- When you discover a house that meets, if not surpasses, your expectations, you are overjoyed. You begin to daydream about when you will be able to relocate to this beautiful neighborhood.
- But before being so excited, you have to ask yourself, “Is this house perfect for you and your family?”
- If you say yes, now is the time for Comprehensive Assessment.
- And it’s the first real estate term you should know. Comprehensive Assessment simply means the final phase before buying a home in which you will check the house precisely to identify any drawbacks or faults before signing the contract.
- It’s an important aspect to keep in mind since if anything turns out badly, you’ll have to do the entire process from scratch or maybe reconsider another option.
2- Escrow Account
- If you decide to become involved in the real estate sector, you should be prepared to come across a lot of jargon that might complicate the already complex process.
- An escrow account is an intermediate account between the buyer and seller. In this account, all transactions and documents between two parties are preserved. Sometimes it’s called an escrow holder, which does the same job.
- So, if you have settled down to buy this house, you should deposit an amount of money into this account.
- This additional procedure proves that you have already acquired the necessary buying power to purchase this property. However, this process is only initiated if all requirements have been agreed upon.
3- Final Cost
- Final Cost is a commonly used real estate word that refers to the absolute amount of money the buyer is responsible for paying off.
- It’s a mix of different expenses, including taxes, insurance prices, and costs that should be paid to the real estate agent and inspectors.
4- Emergency Article
- Whether you are a buyer or a seller, it’s essential to learn more about the emergency article included in the contract.
- This subject will give you the right to terminate the contract if you notice any drawbacks or contradictions.
- You should read it accurately and break it down to understand every vocabulary.
- It’s next to impossible if you sign the contract and then want to break it without having proof that could be used against the other party.
- This proof can be found in the emergency section if you have read it before and know how to take advantage of it.
5- Assessment
- The list of real estate terms might be ever-growing, but we have tried hard to narrow it down, and an assessment is a significant one.
- Don’t do this job on your own. Instead, contact any specialized company to help you assess the status of the house.
- You can find many companies in Bahrain that offer this service. Pick the right one for you based on your budget.
It’s so important to understand some Real Estate Terms
6- Property History Record
- A property history record refers to a document that contains information on all transactions and the history of ownership of a particular property.
- Guarantee that you have this paperwork and read all vital information before planning your move. By reading this paper, you will ensure that the building is registered as an accommodation property.
- Before concluding the contract, ask the landlord to provide you with this document to check it out.
7- Unprofitable Assets
- Purchasing a house is all about making an investment and gaining financial benefit. If you have not done so, you should refrain from investing in real estate.
- Some properties will fail to generate income for you due to the nature of the structure or the neighborhood.
- Please don’t spend your whole budget before making sure that you will make more money when you resale it.
8- Capitalization Rate
- It’s an equation that will help you calculate your investing outcomes.
- Capitalization Rate equals the net profit divided by operating expenses or current market value. Then you can get your gain or return.
9- Expected Value
You can rely on a bank or any financial institution to help you get the property’s expected value. You will hear the real estate term “Expected Value” in real estate if you need to take out a loan.
10- Real Estate Value
Real Estate Value often refers to what makes the property so appealing to consumers, like location, features, services, etc.
We explain the most important real estate terms you are most likely to hear or use while dealing with different consumers. We have grouped these ten top terms based on their popularity. If you encounter any other tricky vocabularies, leave them in the comments, and you will get back to you.
