Buying or selling a home in Western New York can be com stressful enough but add in real estate lingo and you may feel like you are listening to a foreign language. Here are some of the most popular real estate terms and their descriptions.
Assessed Value- Assessed Value is the valuation placed on property by a public tax assessor for purposes of taxation.
Closing Costs –Closing costs are all of the miscellaneous expenses paid by the buyer and the seller when a real estate transaction closes. These costs can include real estate commission, mortgage fees, attorney fees, transfer taxes, recording fees, and title insurance.
CMA –CMA is short for comparative market analysis or competitive market analysis. ACMA compares the prices of homes sold, homes currently on the market and homes pending to a subject property. ACMA may be prepared for a buyer or a seller to determine market value. TheCMA accounts for style, size, location and other factors that make the homes comparable.
Contingency – A contingency is a provision of an agreement that keeps the agreement from being fully legally binding until a certain condition is met. Common contingencies are a buyer’s contractual right to obtain a professional home inspection before purchasing the home or obtain mortgage financing.
Deed-The deed is the legal document conveying title to a property.
Earnest Money Deposit- The earnest money deposit is a deposit made by the potential home buyer to show that he or she is serious about buying the house. This is typically made at the time of the offer to purchase.
Lock Box – A lock box is a secure key-holding device. It is used to hold a key for a home that is for sale. This allows cooperating real estate professionals to gain entry into the home. Entry is usually granted after obtaining permission from the listing agent or office.
MLS – TheMLS or Multiple Listing Service is an organization that collects, compiles and distributes information about homes listed for sale. Real Estate brokers are members of theMLS. Membership is not open to general public. TheMLS is used for real estate professionals to share information about homes for sale to other agents.MLS boards are local or regional. There is no nationwideMLS.
Short Sale- A short sale is when the seller arranges with their mortgage lender to accept a price that’s less than the amount they owe on the property. The lender typically agrees to forgive the rest of the loan. A short sale arrangement is made between the seller and the mortgage lender.
Title Insurance – Title insurance is an insurance policy that protects the lender’s or owner’s interest in real property. Title insurance as it is named protects against claims against the title or from unexpected or fraudulent claims of ownership. Buyers typically pay to pay for the lenders title insurance policy as part of the closing costs.
Still have terms you are unsure of? Give me a call and I can help.
Let the good times roll! Fat Tuesday is just around the corner and Buffalo is going to be celebrating New Orleans style as Artvoice presents the 17th Annual Mardi Gras Parade and Festival. On Fat Tuesday (February 21st), the Elmwood Strip, Chippewa District and Historic Allentown will become Buffalo’s own French Quarter. Start partying at 5:00 p.m. when the parade makes its way through town and keep partying until we get kicked out! Guests will receive entry to all Mardi Gras venues by purchasing a 2012 bracelet. All funds raised by $5.00 bracelet sales benefit Give for Greatness, a campaign to restore funding to dozens of cultural groups. It’s Buffalo’s biggest party night of the year… so come out and party for a great cultural cause!
