Common Real Estate Terms Defined
You’re all excited, you’re getting ready to purchase a new home, but then all of a sudden you find yourself in unfamiliar territory. Sure, you may have done this before but who can remember all of that realtor lingo. So what does all of that jargon really mean? Well, not to worry because that is what we are here to iron out for you.
Here are some of the most commonly used real estate terms and what they really mean.
1. REO – Real Estate Owned – these are homes that have been foreclosed on and have been repossessed by the bank
2. S/S – Short Sale – this is a home that the seller owes more than its current market value and they need bank approval to sell their home for less than they owe
3. BOM – Back On The Market – this is a home that was in a contract but for whatever reason, is now back on the market not necessarily due to any fault of the house or the seller. The buyer could have simply backed out
4. DPA / DAP – Down Payment Assistance / Down Payment Assistance Program
5. FTH / FTB – First Time Home Buyer / First Time Buyer
6. OO / NOO – Owner Occupied / Non Owner Occupied
7. Motivated Seller – this is a seller that is flexible in their pricing or timing. Signifies a sense of urgency
8. Coveted – this usually means Expensive! This is usually due to a fantastic view, the location of the home or a particularly popular floor plan or some other extremely popular feature
9. Contingent With No Kick Out – this means that an offer has been presented to the seller with some contingencies and if those contingencies are not met then the seller may take an offer from another buyer
10. CMA – Comparative Market Analysis – this is used to gauge the competition and determine a correct price for your home
Well, there you have it. These are some of the more common terms; however, there are literally thousands of real estate terms that are utilized daily and it would take a 1000 page novel to list them all!
If you should come across any real estate terms or some lingo that you are not familiar with, please call your real estate agent right away and they will happily go over their meanings with you. Don’t worry about having to remember everything, that is what your realtor is there for.
Just sit back and relax and the next thing you know, you will be living in your new home and enjoying your new life. Home ownership is the most satisfying feeling in the world and having a realtor guide you is the key to finding that perfect home and making the process flow flawlessly from the application to the contract right on through to the closing.
