Does it ever feel like your real estate agent is speaking a different language talking about things like SPDS, fixtures, or due diligence? Real estate agents use a lot of acronyms or shortened phrases in their daily business, but typically forget that the consumer didn’t go to real estate school and never uses these words.
So if you’re in the middle of a real estate deal or maybe just about to start the process, here’s some words and phrases you’ll want to know and what they should mean to you. Don’t let these ones go over your head anymore, so the process can be a little less intimidating.
Addendum: A separate document from the original describing a change made to the initial form like changing the closing date or explaining HOA terms
Appraisal: The formal process of determining the value of a home required by the lender
ARMLS (Arizona Regional Multiple Listing Service): The website accessed by Arizona Realtors where listings by all other realtors are shared.
Closing: When all parties meet to sign documents and bring appropriate monies at the Title/Escrow Company to finalize the purchase/sale of a house.
CMA (Comparative Market Analysis): The process of determining the value of a property done by a real estate professional by comparing similar recently sold properties to your home.
Commission: The amount of money that is paid to the real estate agents after the closing of a transaction. It is typically a percentage of the purchase price paid by the seller.
Deed: Legal document the proves transfer of ownership from buyer to seller
Down Payment: Percentage of the purchase price that the buyer pays in cash
Earnest Money: Deposit made by the potential homebuyer to show they are serious about purchasing the home, at closing it is typically applied to buyer’s down payment.
Fixture: Anything of value that is permanently attached to or part the property ie: carpet, landscaping, etc.
FSBO’s: Properties that are not listed with a real estate brokerage, but are “For Sale By Owner”
Recording (Recordation): At closing, the deed is recorded at the County Recorder’s Office and house is officially owned by the buyer.
SPDS (Seller Property Disclosure Statement): Document filled out by the seller disclosing all material (important) facts about a property from any known issues, repairs done, liens, etc
Under Contract/Pending: The seller of the property has accepted a buyer’s offer to purchase the property and they cannot accept any other offers.
Hope these words and phrases gave a little more insight into your real estate transactions and feel free to ask your real estate agent to clarify words or phrases you may be unfamiliar with. You want the process to be as smooth as possible and understanding the lingo will surely help!
No comments
Post a Comment