Real Estate Experts: 7 Key Words Smart Buyers Always Look For in a Home Listing
According to the National Association of Realtors, 32% of all homebuyers in 2023 were first-time homebuyers, an increase from 26% in 2022. The median age for a first-time homebuyer in 2023 was 35. If you’re trying to buy a house for the first time, there’s a bit of an information overload when you first start home shopping, and you may not be aware of what to watch out for.
GOBankingRates spoke with real estate experts to examine the words and phrases that smart buyers should look out for when shopping for a home. That way, you’ll be able to distinguish between a good deal and a money pit when looking for a home.
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What hidden terms and language in a host listing can indicate whether a home might be a great deal or an absolute nightmare?
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Historical
“I would be careful with the phrase ‘historical’ in home descriptions,” said Phil Green, a real estate investor and CEO of I Buy SD. “This can sometimes refer to the neighborhood, but can also be a signifier that the home is older, out of date and may require a large financial burden to get up to date.”
While the idea of living in a historical home may seem enticing at first glance, you could be signing up for a money pit. You don’t want to get stuck with an out-of-date home that requires a significant financial investment in repairs and basic upkeep.
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Motivated Seller
Erwin Miciano, a real estate investor and owner of Semi Homes, noted that “motivated seller” is usually a code phrase for the seller wanting out desperately. “Sometimes, it means the seller is under pressure due to financial or personal reasons, so they’re willing to negotiate on price. I’ve swooped in on deals where a motivated seller was happy to accept way below asking just to get the home off their hands,” he said.
A motivated seller may be willing to accept a lower price, which would lead to a better deal and you saving money as a buyer. However, you should always do your homework to ensure the seller isn’t rushing because of hidden issues they’re trying to pass off.
Cozy or Charming
Miciano pointed out that “cozy” or “charming” is usually a polite way of saying that a home is small. “Cozy means you might need to downsize your furniture — and maybe your expectations about space. It can be a great deal if you’re okay with a tight layout, but always be ready to compromise on square footage,” he said.
There’s nothing inherently wrong with purchasing a smaller home, but you have to watch out for these phrases to avoid getting too excited before viewing a listing. You don’t want to fall in love with a community and then discover that the home doesn’t match your expectations.
Needs TLC or Handyman Special
“While these phrases might scare off some buyers, they can signal an opportunity for those willing to put in some work,” said Nick Wemyss, a Realtor at Intero Real Estate Services. “These homes often sell for below market value and can be great investments if the necessary repairs are manageable.”
You shouldn’t be scared away about a home that requires maintenance and repairs because you could likely get a better deal on the property. However, in a house that needs work, it’s essential to have a thorough home inspection completed and to review the document with an experienced realtor. You’ll want to ensure that your agent can help you navigate a home inspection report that might otherwise be confusing to understand.
Newly Priced or Price Reduced
According to Wemyss, these phrases indicate that the property hasn’t sold at its original listing price and the seller is trying to see whether anyone bites at a lower price. “If it’s been on the market for a while, the seller might be willing to accept an even lower offer. That being said, right after the price has been lowered, some sellers may consider it an insult to offer an even lower price,” he said.
These phrases could indicate a great opportunity to land a deal on a home, so you’ll want to work with your agent to craft an offer that’s likely to get accepted.
As-Is
Wemyss pointed out that this phrase can indicate that the property has a lower price due to known issues. If you’re handy or willing to invest in renovations, this could be a great deal for you, but you’ll want to determine the approximate costs.
Additionally, the meaning of this phrase can vary regionally, so you’ll want to work with your agent to review this one.
Unique or One of a Kind
“While these could genuinely describe interesting architectural features, they’re sometimes used to mask odd layouts or questionable design choices that might be expensive to change,” Wemyss said.
You’ll want to examine what makes the listing unique and whether you’re comfortable with its reasoning. You don’t want to discover that the home has a complicated layout to manage because then you could struggle to sell it down the road.
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This article originally appeared on GOBankingRates.com: Real Estate Experts: 7 Key Words Smart Buyers Always Look For in a Home Listing