Don’t talk technical to me! Did you ever feel like telling this to someone? Especially to that real estate agent who tried to use the flare of real estate jargons to make you spend more?
We hate it too. We believe that jargons should only be used between two people, from the same industry, who can decipher ‘IT’. If you use it with normal people, you are just trying to flex. There, we said it.
Having said all that, we think you should learn some real estate basic terms. Wait, don’t lash out at us. Just hear us out. Learning real estate jargons, as tricky as it is, can actually help you crack a good deal with your real estate agent. Game recognizes game, you know. And don’t worry about the difficulty part, that’s where we kick in. Our long-time readers would know that’s our expertise. Call it our flex, if you will.
Are you in?
So, here are a couple of real estate terms you need to know that will not only help you crack a great deal on your next house but also make you look like James Bond while you do it. Keep your tuxedos ready-
Asset Valuation – The Go-To Real Estate Jargons
Right off the bat, let us introduce you to a term that is like the king of all other real estate key terms – ASSET VALUATION! It sounds official, doesn’t it?
Asset valuation, by definition, is the process used to determine the value of a piece of land, or house, and whatnot. In simple terms, this term is what is going to decide the value of the property that you are either planning to buy or sell.
That’s all. Next time a realtor throws some outrageous price at you. Just ask him, “what variables were used to determine the asset valuation?” It will freak them out.
Carpet Area – SUMthing Mathematical
For the very last time, it is not the size of your carpet. Also, who even cares about carpet these days, except for Aladdin, that is.
To understand this one, we are going to teach you a formula. We hate math too, but this one is easy, we promise.
Carpet Area = Inner wall area + floor area. Multiply the width and height of all the rooms, inner walls, and corridors and add them up. That is it. Now, mug up this formula and become a pro of real estate purchases. Wait, did we just make math easy?
Stamp Duty – Property TAX
This is yet another term that scares a lot of people. Honestly, we are stumped, pun intended. Here’s quick advice for all the home seekers – don’t get scared by government terms.
Stamp Duty is a tax imposed on the sale of property by the state government. Stamp duty is a variable term payable under Section 3 of the Indian Stamp Act, 1899.
Good lord, that was technical. Just remember that it is just a tax that you pay our beloved government while purchasing a new home or property. It doesn’t sound spooky now, does it?.
Still here? Great! Let’s continue!
RERA – Your Real Estate Friend
We are quite certain you must have heard it from a lot of real estate agents, although it is not just limited to them. RERA stands for Real Estate Regulatory Authority. Look, It is a legal entity that is regulated by the Real Estate (Regulation and Development) Act, 2016.
RERA aims to protect the home purchasers, someone like you, and also boosts the real estate investments. It helps to bring transparency to the home buying process.
Honesty, consider RERA as a friend of yours who will make sure you don’t get scammed by any real estate agent or developers.
Built-up Area – AweSUM Jargon
Ready for another math lesson. We sense a very strong, “NO!!!!!”. We understand. But what if we say you already know this one.
Built-up Area is what you get when you add the carpet area, which can be calculated using the previously described formula, with the area of the walls. Simply put,
Built-up area = Carpet area + area of walls
It also has an elder brother called Super Built-up Area, which is the sum of built-up area with common areas. We know, we know it got a bit complicated. But, it’s not like you have to memorize it right away. Come back to this whenever you have some free time and give it a good gaze. You would have it by heart before you know it.
SUMmary – Didn’t intend this one!
If you made it here, then kudos to you, our friend, because you are one of the very few determined people on the internet. Also, you just got yourself an imaginary master’s degree in real estate jargons. Mama’s gonna be proud. So, here is a quick run-through of all the real estate terms explained above so that you don’t have to read through the entire article again.
Built-up Area, Super Built-up Area, and Carpet area denote different sizes of different areas of the property you are planning to buy. RERA is a government entity, whereas stamp duty is the tax you pay to the government. All these terms play a vital role in your property’s Asset Valuation. *Gasp* Easy!
We are now at the part where you will dismiss the tab before you even read it. But if you are a firm believer in “The More We Share, The More We Have”, and if you found this article really helpful, master the art of sharing by sharing these real estate terms for beginners with your friends and family who are in the pursuit of a new home.
If someone you know is actually looking for a new home, then you can ask them to check out AsmitA’s Upcoming projects. We got some great projects at all the price ranges. Like we said, “The More We Share, The More We Have.” Thank you and see you at the next one.