7 More Real Estate Terms You Need to Know

If you’re buying or selling a home in Aspen, there are a lot of terms you’ll have to learn – especially if this is your first home.
Here’s what you need to know.

Earnest Money Deposit

An earnest money deposit – sometimes called a good faith deposit, is money you show the seller to let him or her know you’re serious about buying a home. You’ll get this money back to pay for closing costs, to contribute to your down payment or cover other expenses.

Equity

Equity is the difference between a home’s fair market value and the unpaid balance of the mortgage. If the home is worth more than you owe, you have equity in it. If it’s worth less, you have “negative equity.”

Escrow

Escrow is an account set up by the lender or the broker to hold money until the transaction is complete.

Home Warranty

A home warranty protects the home against future issues. Usually, this type of warranty requires the owner to pay a deductible toward repairs.

Interest

Interest is the cost the lender charges you for borrowing money.

MLS

The MLS is the multiple listing service, which is an organization that shares home sale information with its members.

Mortgage Broker

A mortgage broker is an entity that brings borrowers and lenders together.

Are You Buying or Selling a Home in Aspen?

Call us at 970-429-8275 or get in touch with us online to tell us what you want from your next home. We’ll begin searching Aspen real estate listings right away. If you’re selling, get your free Aspen real estate market update and find out how we can help you sell your home quickly and at the best price.
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