What did they just say? Are they even speaking English?
If you have ever been thrown into the home buying or selling process, then you have probably experienced the extreme confusion that occurs when real estate agents begin to speak. Trust us, this information is not gibberish and it’s very important to know!
That’s where we come in – we are here to tune you in on some of the real estate lingo.
This is not an algebra equation or Star Wars
character. These letters and numbers reflect the number of bedrooms and bathrooms in a house. For example, 3B/2B means that the home has three full bedrooms and two full bathrooms. If there is also a half bath, then it would look like this - 3B/2.5B.
These three letters are often used during the beginning of the home-selling process. A Comparative Market Analysis (CMA) is a report that reflects the prices of comparative homes in your neighborhood and area, and those currently and/or recently sold in your present market. This report helps your agent price your home correctly in order to sell fast.
MLS stands for Multiple Listing Service, which is a system that serves as a hub for brokers to share detailed information on their listings with other brokers. This source allows brokers to search and gather detailed information on properties for their clients prior to visiting the home itself. Searches can be filtered to specific areas, a certain number of bedrooms and bathrooms, school zones, etc. Brokers are the only ones who have access to this highly credible and helpful program, adding value to their service to you.
When a home goes under contract, your funds and documents are held by a neutral third party prior to the closing. This holding of funds is labeled as “escrow.” The escrow agent is typically an attorney or title company who was hired to handle these arrangements.
Upon signing the contract for a home, you will also be given the option of putting down funds for the “due diligence” period. This is a given set of time during the under-contract time period that allows for a thorough investigation of the property to determine if the buyer is still satisfied with making the purchase. If issues are found with the property during due diligence, the buyer can then propose due diligence requests through an addendum to adjust the terms of the contract or cancel the purchase of the home. You might refer to due diligence as your grace period during the under-contract process.
During closing, there are specific settlement and transaction charges that need to be paid by the home buyers and sellers. These charges are referred to as “closing costs.” The amount of these costs depends on negotiations made during the closing process, and they typically include lender fees, homeowner’s insurance fees, deed filing fees, real estate agent commissions, attorney fees, etc. These payments go beyond the actual cost of the property, so it is important to factor these in when you are purchasing or selling a house. Our agents can help you with this!
It seems like there could be an entire dictionary just for real estate that includes all the terms and proper lingo to use. We wish we could write all of these out for you, but if you have any questions our agents at Network Real Estate
know the lingo like the backs of their hands. Contact us today so we can decode this very important life decision.
Neal Johnson is a CMCA, CRB, CNE and GRI-certified, licensed real estate broker at Network Real Estate, which has exclusively served a high volume of property sales and purchases in the greater Wilmington area for more than 30 years. With three offices at College Road, historic downtown Wilmington and Pleasure Island, Network’s brokers are widespread and well-versed in this marketplace, making Network a preferred real estate company for first-time homebuyers and beyond.