The ABC's of Real Estate

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A

Appraisal: A document of opinion of property value at a specific point in time.

B

Buyer’s agent: This is the agent who represents the buyer in the home-buying process. On the other side is the listing agent, who represents the seller.

C
Contingency: A provision in a contract requiring certain acts to be completed before the contract is binding.

D
Direct home-selling costs (DHSC): Carrying costs, loss on sale, repairs and improvements, commission, closing costs, principal, interest, taxes and insurance, interest on equity loans, and utilities.

E
Escrow account for real estate taxes and insurance: An account into which borrowers pay monthly prorations for real estate taxes and property insurance.

F
Fee simple: A form of property ownership where the owner has the right to use and dispose of property at will.

G
Good faith estimate: Under the Real Estate Settlement Procedures Act, within three days of an application submission, lenders are required to provide in writing to potential borrowers a good faith estimate of closing costs.

H

Homeowner’s insurance: Coverage that includes personal liability and theft insurance in addition to hazard insurance.

I

Inspection rider: Rider to purchase agreement between third-party relocation company and buyer of transferee’s property stating that property is being sold “as is”. All inspection reports conducted by the third party company are disclosed to the buyer and it is the buyer’s duty to do his/her own inspections and tests.

J

Joint tenancy with rights of survivorship: Type of concurrent estate in which co-owners have a right of survivorship, meaning that if one owner dies, that owner's interest in the property will pass to the surviving owner or owners by operation of law, and avoiding probate.

K

Kick out clause: Allows a seller to continue showing the house for sale and to "kick out" the buyer if the seller receives an offer from another buyer without a home sale contingency.

L

Loan commitment: A written document telling the borrowers that the mortgage company has agreed to lend them a specific amount of money at a specific interest rate for a specific period of time. The loan commitment may also contain conditions upon which the loan commitment is based.

M

Marketing period: The period of time in which the transferee may market his or her property (typically 45, 60, or 90 days), as directed by the third-party company’s contract with the employer.

N

Net sales price: Gross sales price, less concessions, to the buyers.

O

Open house (public): When a listing that is on market is available to the public for viewings and showings.

P

Principal, interest, taxes, and insurance (PITI): The four parts that make up a borrower’s monthly mortgage payment.

Q

Qualified Buyer: An individual or company who is in the market and displays some evidence of being financially able to buy a home or property within a specific price range.

R

Real estate agent: An individual who is licensed by the state and who acts on behalf of his or her client, the buyer or seller. The real estate agent who does not have a broker’s license must work for a licensed broker.

S
Seller (owner): The owner of a property who has signed a listing agreement or a potential listing agreement.

T
Transaction: The real estate process from offer to closing or escrow.

U
Under contract: A property that has an accepted real estate contract between seller and buyer.

V

Vacate date: The date on which the seller (transferee) vacates the property (generally the date when responsibility for property expense by the transferee ends) and the third-party company assumes ownership for the property through a buyout.

W
Walk-through: A showing before closing or escrow that permits the buyers one final tour of the property they are purchasing.

XYZ

If you’ve gotten this far, contact Gina Smith, Full-Time Realtor, to move forward with your buying or selling journey!

404.457.8525

SmithFineHomesAtlanta@gmail.com