Looking for a new house involves having to talk to agents and venturing into the real estate market. You may come to a point when you’re starting to hear new words that seem to be used quite commonly by real estate professionals. You’re in for a treat, because we’re going to talk about some of the most common real estate terminologies when searching for a new home.
Importance of Knowing Real Estate Terms
Putting your money into a real estate investment should not be taken lightly. After all, it’s a huge sum of money that you’re dealing with here. You need to understand commonly used terms in the real estate industry so that you won’t get shortchanged or duped by a fraudulent transaction during a home purchase.
It’s also a good idea to consult professionals who can give you property advice, especially in terms of buying a home, remortgages, or other similar investments.
5 Real Estate Terminologies in Home Purchasing That You Need To Know
Although your real estate agent will probably guide you throughout each transaction, it would still be a good plan if you familiarize yourself with a few easy-to-learn terms.
Check out this list of five real estate terms that you may likely encounter when searching for and buying a house:
Carpet Area
This term refers to the section of the house where you can place a carpet. Practically, it is the usable space in the house that can accommodate a variety of purposes.
This doesn’t take into consideration the thickness of the wall, the orientation of the lobby, or the type of stairs. However, it may include the balcony area.
Knowing the carpet area helps buyers define how much space they have for seating, tables, cabinets, and other home items. In some cases, this is vital in defining the dimensions of the carpet that you should buy.
Built-Up Area
Built-up area is the section taken up by the entire infrastructure built. This term also goes by the word “plinth area” or “floor area”. It is inclusive of the carpet area and the wall thickness, along with the balcony and terrace.
As a general estimate, carpet area is about 70 percent of the built-up area of the home.
Super Built-up Area
Super built-up area refers to the built-up area, along with the lobby and corridor. It might also include additional facilities such as swimming pool, gym, and such. These areas are counted as saleable and are therefore included in the rate that you will have to pay for.
Per Square Foot Rate
This information tells you the cost of the carpet area and super built-up area. Figuring a house’s cost per square foot will help you determine how much you need to save and, if needed, adjust your ways to save up for it.
Measuring the area may be done in several ways, from which you will receive a rough estimate of the rate or value. The rate may be affected by how big the saleable area of your house is.
By knowing these terms and their proper use in the marketplace, you can understand the property buying and selling process better. On a final note, it would be best to talk to a real estate professional if you have questions about some terminologies that you encounter for the first time.
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