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Confused by ALL that Real Estate Lingo? Check out our ABC’s of Real Estate Lingo – Part 1 of 2

Buying or selling a home can be a nerve-racking experience on its own. Add to that ALL the real estate terms you’ll hear from the REALTORS, the lenders and the title companies, and it’s easy to feel overwhelmed by it all. From the first-time home buyer to the veteran-investor, check out our list below for some of the most widely-used real estate terms.

Appraisal: An estimation of a home’s market value by a licensed real estate appraiser based on comparable recent sales of nearby homes.

Broker: The term broker has different meanings in different situations. Most REALTORS are sales associates who work under a broker. Some agents are brokers as well, either working for themselves or under another broker. In the mortgage industry, broker usually refers to a company or individual that does not lend the money for the loans themselves, but broker loans to larger lenders or investors.

Contingent offer: An offer that is accepted by the seller, however there are certain conditions that must be met before the sale is final.

Down Payment: The part of the purchase price of a property that the buyer pays in cash and does not finance.

Escrow: Funds deposited with a third party to be delivered upon the fulfillment of a condition. For example, the earnest money deposit is put into escrow until delivered to the seller when the transaction is closed.

Federal Housing Administration (FHA): An agency of the U.S. Department of Housing and Urban Development (HUD). Its main activity is the insuring of residential mortgage loans made by private lenders.

Grantor: The person conveying an interest in real property.

Homeowners Association: A management organization within a community, subdivision or neighborhood that manages common areas and creates and enforces rules for properties within its jurisdiction.

Inspection: An examination by a qualified professional of a property’s structural and mechanical components.

Joint Tenancy: A form of ownership to a property that means each party owns the whole property and that ownership is not separate. In the event of death of one party, the survivor owns the property in its entirety.

Key Rate: An interest rate set by the federal government that determines the cost of borrowing money for a mortgage to buy a new home.

Loan-to-Value (LTV): The percentage relationship between the amount of the loan and the appraised value or sales price.

Multiple Listing Service (MLS): A private offering of cooperation and compensation by listing brokers to other real estate brokers. Each MLS has its own rules and procedures.

Thinking of buying or selling a home in the Spring Hill, Brooksville, Weeki Wachee and Hernando Beach areas of Hernando County, Florida? Visit us TODAY at www.GailSellsFloridaHomes.com to explore our state-of-the-art, MLS Map Search Feature. Be sure to check out our BLOG on December 28th as we conclude our series on the ABC’s of Real Estate.

Until then… it’s all about YOU!

About Gail Spada

Gail Spada’s real estate career began in 1990 and it didn’t take long for Gail to discover her love for the industry. In 2001, she began her real estate sales profession with Century 21 Alliance Realty in Spring Hill, FL. Gail has worked diligently to stay on top of her game. She is a Florida Licensed REALTOR® and has earned the following designations/certifications to include: GRI (Graduate Realtor Institute), ePRO (Internet Savvy Real Estate Specialist), AHWD (At Home With Diversity – One American) and SFR. It is that well-rounded training and experience, coupled with her intimate knowledge of the Hernando County real estate market, that enables Gail to deliver results to her customers.