No shame. We know there's plenty of Real Estate jargon out there that has you shrugging your shoulders and raising your eyebrows. With an extensive list of industry specific words, we're here to make you an expert on some important terms.
1. "MLS - Multiple Listing Service:" this is a service/online portal used by a group of brokers, typically within a specific Board of Realtors, in an area where an accurate list of homes for sale can be found and are updated in real time as active, pending and sold. This is the best source for accurate listings and can only be accessed by Realtors.
2. "Escrow:" refers to a 3rd party (escrow company) that holds the money and facilitates the terms of the contract. When someone says they are in a "30 day escrow", it means someone is holding onto the funds (or earnest money deposit), until both parties fulfill their end of the contract and the transaction can close.
3. "Contingency:" this word is explaining that a contract can be cancelled if certain events don't come through. For example, if the buyer cannot obtain a loan the contract can be canceled, or if the buyer investigates the condition of the property by having a physical inspection and decides they don't want to buy it after all, the deal can be canceled via the investigation contingency.
4. "Due diligence:" this is describing taking caution in reviewing disclosures, investigating the condition of a property, procuring insurance, and essentially doing your homework so your transaction is a sound one.
5. "Pre-foreclosure:" this describes the early stages of a repossession of a home. At the time of "pre-foreclosure" the owner has the opportunity to bring their mortgage current or sell the home before they foreclose. The home could be months from foreclosing or never foreclose.
"CMA vs Appraisal:" A CMA report is a conmparative market analaysis or "comps." This is when a real estate broker researches the Active, Pending, and Sold prices in a neighborhood to get an estimated valuation of a property. An appraisal an opinion of value done by a licensed appraiser and takes into account only sold comparable homes.
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