As a newcomer to the world Boston condo market, you will likely notice real estate and mortgage professionals use quite a few unfamiliar terms. As one of the most important sectors of the American economy, real estate overlaps the fields of law, finance, and compliance. For this reason, it is important to understand some of the vocabulary used by realtors, lenders, and title insurance agents. When searching for Boston condos for sale under $500,000, don’t hesitate to ask your real estate agent about terms that are new to you. Here are a few terms to get you started.
Active with Contract (AWC)
When you come across a Beacon Hill condoo listing that indicates the home is AWC, the seller has already entertained an offer from another prospective buyer but is willing to hear from others in case the deal does not go through.
Assessed Value
Assessed value is not the sales price or even the appraised value of the property. It is the determination made by the Boston, MA assessor for taxation purposes, and it is often lower than you expect.
Back on the Market (BOM)
A BOM property should be approached with a certain degree of caution and with advice from a Boston first time condo professional. Something happened the first time around and the sale was not completed.
Closing Costs
You will find out there are many items you are expected to pay before taking possession of your new Boston condo. These items are known as closing costs, and they can be negotiated to a certain extent with your mortgage loan officer. Payment of these costs is settled at the closing table.
Multiple Listing Service (MLS)
You will hear MLS mentioned quite a few times during your home search. This centralized digital service provides accurate information about available homes on the market.
Principal and Interest
When you get to the closing table, a title agent will tell you how much you are expected to pay each month for your mortgage, and part of this payment will be the principal amount you borrowed plus the interest you agreed to. In some cases, you may only pay interest for a few years.
Title Insurance
This policy protects the lender from errors related to the conveyance of title to your name. You pay the cost of insuring your lender, but you can also get an owner’s title insurance policy for your own peace of mind.
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Condos around the Boston area to rent:
Back Bay area condos for rent
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Charlestown area condos for rent
Navy Yard Charlestown area condos for rent
Dorchester area condos for rent
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Leather District area condos for rent
Midtown area condos for rent
Seaport District area condos for rent
South Boston area condos for rent
South End area condos for rent
Waterfront area condos for rent
North End area condos for rent
West End area condos for rent
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Boston Beacon Hill condos for sale
