The Ultimate Real Estate Terms: Letter S
Whether you’re new to real estate or simply looking for a way to refresh your knowledge, you’ve come to the right place to learn about real estate terms.
In this article, we’ll define important words that start with the letter S as part of our Ultimate Real Estate Glossary, covering all the letters from A to Z. Our goal is to simplify the industry’s complex lingo for you to understand and conduct better investments in the market.
Are you ready to increase your knowledge of the industry? Here is a list of terms and words that will come in handy when dealing with real estate.
Real Estate Terms: The Letter S
Salaried Agent: A real estate sales agent or broker who receives all or part of the compensation in real estate sales in the form of a salary. However, it’s important to note that real estate agents make most of their earnings from sales commissions. Real estate commissions are always adjustable but usually range from 4% to 6%. The commission is generally split in half when two agents work on a real estate transaction—one for the buyer and one for the seller.
Secondary Market: Mortgages are purchased from mortgage lenders through an institutional investment market. A primary market, however, is a location where goods are sold to the general population. This is referred to as “loan origination” by a real estate lender. A loan can be sold on the secondary market after it has originated on the primary market.
Security Deposit: Security deposits are usually required prior to moving in, and state regulations govern how security deposits are applied once they are required. This is to ensure that the tenant will fulfill their financial responsibilities under the lease conditions. It also assists in covering the costs of any damage beyond regular wear and tears that the renter may have caused. If the property is left in relatively good condition, security deposits are usually reimbursed upon the conclusion of a lease.
Showing: This is when a listing is shown to prospective buyers. In cases where a listing is shown to the buyer’s agent, it may also be referred to as “preview.” Showings, in contrast to an open house, are a private viewing of the listing set by appointment. In a showing, prospective buyers get to view and familiarize themselves with the listed property to better assess if they’re willing to make an investment.
Sign Rider: An additional sign containing the real estate agent’s name and contact information placed beneath, on top, or next to a real estate sign. Sign riders are used so that when people come across a listed property, they know who to call if they want to learn more or to potentially make an offer. Sign riders can also add extra information to a sign, such as letting potential buyers know when an open house will be held.
Special Assessment Tax: A special assessment tax is a surtax placed on property owners to fund particular local infrastructure projects, such as road development and maintenance. Only residents of the community who will benefit from the project are taxed. Buyers should be informed of any special assessment taxes that may apply to a property they are considering. Special assessments are usually imposed for a specific period of time and are not tax-deductible.
Conclusion
To quote financial expert Suze Orman, “Owning a home is a keystone of wealth—both financial affluence and emotional security.” Whether it’s a house, loft, or apartment, these places aren’t just investments, but also personal investments for you. Although the primary concern is if the prospective property will earn money as a house, it’s important to remember it’s also a home—for you or for your tenants. When prospecting investment properties, always choose wisely.
Just by learning these terms and words, you’ve now deepened your understanding of the real estate industry and are well on your way to making sound investment decisions.
Is there anything we missed or something you want to clarify? Let us know in the comments below!