Business Desk 
- Navigating the Real Estate Market: A Guide to Key Terms for Homebuyers:
As the real estate industry continues to grow and evolve, understanding the terminology used by professionals can be a daunting task for potential homebuyers.
In Kenya, where the market is thriving, it’s essential to be well-versed in the jargon to ensure a smooth and transparent transaction.
Centum Real Estate, one of the leading real estate developers in Kenya, sheds light on some common real estate terms that every homebuyer should know before embarking on their homeownership journey.
The real estate industry is notorious for its complex terminology and acronyms, which can be overwhelming for clients who are not familiar with them.
Terms like ARMs (Adjustable Rate Mortgages), contingencies, and escrows can create a language barrier that hinders effective communication between real estate professionals and their clients.
As a result, it is crucial to strike a balance between using industry-specific language and explaining it in a way that is accessible to clients.
However, it is equally important to recognize that clients need to become familiar with some industry-specific terminology to navigate future real estate transactions with confidence.
Ultimately, effective communication in real estate is about finding a middle ground between using technical language and explaining it in a way that is easy to understand. This way, it will ensure that clients feel informed, empowered, and confident throughout the real estate transaction process.
Decoding Real Estate Terms
From built-up areas to occupancy certificates, understanding these terms can reduce confusion and ease decision-making for homebuyers.
A built-up area, for instance, refers to the total area available in the property for sale, including usable and unusable areas. Possession date, on the other hand, is the date when the developer hands over the apartment to the buyer.
Other crucial terms include occupancy certificate, which indicates that a building is ready for occupation and meets all government guidelines, and maintenance charges, which are fees paid by residents to maintain shared areas within the premises.
Common areas, such as lobbies and elevators, are also essential to consider, as they are utilized by all residents within the property.
Stamp Duty, Possession Letters, and Bank Approval
Stamp duty, a fee charged by the State Government during property registration, is guided by the transactional amount.
Possession letters, provided by real estate developers, indicate that the property is ready for occupation and are a form of official handover.
Bank approval letters, issued when a home loan is approved, are also critical in the homebuying process.
Down Payments, Occupancy Periods, and Pre-Approval
Down payments, also known as deposits, are the amounts paid upfront to secure a mortgage or loan on a property.
Occupancy periods, which span from possession to the issuance of an occupancy certificate, allow buyers to start living in the property, although they may not be the legal owner yet.
Pre-approval, which involves submitting financial documents to a lender, is advisable before starting the home search, as it provides a preliminary loan amount and strengthens the buyer’s offer.
Closing Costs and the Importance of Knowledge
Closing costs, including appraisal fees, title insurance, and attorney fees, are essential to consider when budgeting for a real estate transaction.
Understanding these common real estate terms, homebuyers can approach the process with confidence and make informed decisions.
Centum Real Estate, with its expertise and guidance, is dedicated to supporting buyers every step of the way on their path to homeownership.
For those looking to invest in the Kenyan real estate market, Centum Real Estate’s projects offer a range of options to suit every need and budget.
