Mastering Real Estate Lingo To Boost Your Home Sale Success
Ever feel like you don't understand what is going on when talking to your estate agent or solicitor? Don't worry - with this article we've got you covered!
The property industry, with its intricate jargon, terminology, and legalese, can be a daunting landscape. Considering that most of us only move house every decade or so, it's no wonder that the initial steps in the house-moving process can feel like learning a new language.
In this article, we aim to demystify the house-moving process by shedding light on the terms you may come across. Our goal is to ease the stress and provide you with a clearer understanding of the journey ahead.
Chain - the property chain refers to the link between a buyer and a seller, starting with someone who does not have a property to sell in order to buy, and culminating in a seller who is not buying a property. There is no limit to how long a chain can be, but the longer it is, the more parties there are to coordinate, which can be tricky to navigate.
Chain-free - this is often added to property marketing and means that the seller of the property is not purchasing another property, ensuring that there will be no chain. This is often seen as a selling point, as it eliminates the issues that can be caused when dealing with a chain.
Under offer - some agents will mark a property as 'Under offer'; this means that there is an offer on the property that is likely to be proceeding through the solicitors. This could mean that the sellers might still be open to further viewings or offers from other parties.
SSTC - This stands for 'Sold subject to contract' and is used, similar to under offer, when a buyer is proceeding with a purchase through the solicitors, but they have not yet completed a sale.
Survey - there are 3 main options for a survey, a mortgage valuation which is carried out by the mortgage lender to check that the value of the property matches the offer that has been made, a level 2 (or homebuyers report) which checks a property throughout and highlights areas that a buyer should look further into, and a level 3 (or structural survey) which will look in-depth at the property to identify any issues that there may be. The age and condition of the property will likely guide you as to which survey you should have done, and of course, there is a cost difference to each one.
SDLT - Stamp duty land tax, often referred to as stamp duty. This is the tax that is payable by a buyer on the purchase of a property and is calculated based on the price of the property and your own circumstances. There is a stamp duty calculator on the gov.uk website to help you figure out how much you will have to pay. It is not possible to use mortgage finance to pay this bill, so you will need to factor this into your budget.
Exchange - Exchange of contracts refers to the point at which you and the seller of the property that you are buying are legally bound to the transaction, and will come just before completion.
Completion - This is the day that you take over ownership of the property, and you will get your keys!
If you're navigating the complex world of property transactions and have questions, don't hesitate to reach out. Our team is here to provide the guidance and support you need!